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7 most popular embedded insurance products for mobile banking apps

In a space as competitive as fintech, embedded insurance is one of the best ways for digital banks to capture user interest and monetise their user base.
Financial services & fintech
Words by
Alex Vickery
Time to read
5 minutes
Last updated
January 3, 2024
In a nutshell
  • Offering embedded insurance can help mobile money apps build trust.
  • Products should be well-aligned with your app’s services and customer base.
  • With these popular B2B insurance products, digital banks can add value to their cards and accounts.

Offering embedded insurance to your community helps build trust in your mobile banking app – especially when it comes to protecting your customers’ purchases or financial wellbeing from risk.

And the more your users trust you, the more likely they are to spend with you, upgrade to premium accounts and ultimately turn to you as their primary banking app.

In order to truly add value to your neobank and incentivise consumer spending, it’s important to offer the right insurance products – and the smartest way to do that is to work with an insurtech partner that can find the best solutions for your business.

Before we dive into the best products for neobanks, let's quickly go over what we mean by embedded insurance for fintechs.

What is embedded insurance in banking?

Embedded insurance is a digital insurance solution that banks and fintechs can incorporate as an add-on or native component of their value proposition, often by partnering with an insurance provider (also known as 'bancassurance').

In order to gain customer trust as an insurance distributor, most fintechs choose to natively embed insurance products into their payment cards or accounts. This means that users are automatically covered when they use that card or account.

Financial services companies can also choose to cross-sell insurance related to certain life or banking events.

Read more: 5 things fintechs should consider in their insurance strategy→

If you’re looking to integrate embedded insurance into your strategy for the first time or are looking to expand your coverage, check out the top 7 insurance products for neobanks.

1. Purchase protection

Insurance related to customer spending attracts more – and bigger – transactions. A product like purchase protection encourages customers to use their account more often and to make larger purchases with it – after all, the more they use their account, the more coverage they get.

Purchase protection is designed to cover both online and offline purchases made by your users in case of theft and accidental damage of purchased goods.

This means that when a customer reports that their item arrived damaged, we cover the cost of repairs or the purchase price. If their item is stolen, customers receive a full refund. 

By providing peace of mind, your users feel empowered to purchase more items – and more valuable goods – with their card.

Woman uses credit card from mobile banking app to make online purchase
Embedded insurance products related to customer spending, such as purchase and delivery protection, boost transactions.

2. Delivery protection

Delivery protection is a broad insurance product that protects purchases in case the goods aren’t delivered, are defective or don’t match the description.

If the item is defective and returned by the customer, but the retailer doesn’t provide a refund or replacement, then we cover the purchase value. If the retailer does provide a refund or replacement, then we will cover the cost of sending the item back. 

Yourusers can purchase in confidence knowing that they will be reimbursed for the return cost, purchase value of the goods or the purchase of identical goods from a different merchant.

3. Travel insurance

Travel insurance is one of the most popular insurance products on the market. But with so many different types of travel cover, it’s important to determine what makes sense for your business. This can range from covering flight delays to lost luggage to offering assistance abroad.

At Qover, our travel insurance options are modular, meaning we can adapt the coverage depending on the types of cards and accounts you offer as well as your user segment.

So whether you’re looking to protect your customers from unexpected trip cancellations or to cover medical expenses abroad, we can find the approach that works best for you. 

4. Bill protection

Rather than being related to customer spending, bill protection is linked to personal risk. This product provides financial protection for customers in the event of temporary work incapacity due to an accident, sickness, involuntary loss of employment or hospital stay.

With bill protection, most recurring expenses and personal bills that a user pays for with their account are covered.

This was especially relevant for our partner Monese – one of the UK’s leading mobile money apps – whose audience base is largely made up of people with nontraditional income patterns.

Together, we created this brand new insurance solution to give their customer's peace of mind. During the highs and lows of our new post-COVID world, protecting your user base with bill protection can help you stand out from the competition and increase customer loyalty.

Crowd of young people enjoying live concert
Ticket cancellation protection gives customers peace of mind when planning ahead.

5. Ticket insurance

No one wants to miss out on that concert, theatre performance or sporting event they’ve been looking forward to for months. But sometimes, life gets in the way.

Whether it’s an injury, illness or transportation failure, ticket cancellation protection gives your customers an added layer of financial security and flexibility when planning ahead. With this insurance product, ticketholders can get reimbursed when the unexpected happens.

6. Refund protection

Another product related to consumer spending is refund protection. Let’s say a customer wants to return something because it isn’t exactly what they had in mind (it happens to the best of us). Many retailers have complex return policies, which can make it difficult to get their money back.

Luckily, with refund protection, your users don’t have to worry about that – items they purchase with their account are automatically covered.

So even if the retailer won’t accept the unused item within 90 days of purchase, customers can file a claim to get their money back. 

This can be particularly useful for electronics, which may have tighter return times or stricter return policies. With our modular approach to fintech insurance, you can decide whether your refund protection covers electronic devices for your users.

7. Extended warranty

When making a bigger purchase, it’s important that your users feel secure. And there’s no greater frustration than when a device malfunctions right after its warranty ends. 

With extended warranty protection, cardholders are covered for an additional two years when they buy household appliances, televisions, laptops and more – meaning that if something does happen, they’ll be reimbursed for repair costs or the cost of replacing the item altogether.  

This extra reassurance can convince your customers to make that larger purchase with their account.

Shiny Mastercard credit card from leading UK FinTech Revolut
Qover’s digital insurance products help fintechs like Revolut and Monese protect their users.

These popular embedded insurance products offer a host of benefits for challenger banks, from adding value to your payment cards to building trust in your mobile banking app.

The most important thing is that the embedded insurance products you offer should be heavily aligned with your online banking services and audience.

With our embedded insurance orchestration platform, our fintech partners can not only pick and choose the products they need, but they can also take advantage of features like in-app API integrations, an online claims process, a real-time performance dashboard and more.

Join the likes of Revolut, Monese, Qonto, Lydia and more – get in touch with us to see how we can help take your fintech to the next level.