January 26, 2024
Embedded Insurance Is Going Mainstream
Remember when insurance was something you bought separately? Those days are fading fast. Embedded insurance is going mainstream, especially among Millennials and Gen Z. Why? Because the future of car buying is all about efficiency, convenience, and a 'one-stop-shop' experience.
In the not-so-distant past, insurance used to be a separate entity in the world of consumer purchases. You'd buy your car, and then you'd seek out insurance from a different provider. But that's changing, and quickly.
Our 2024 Embedded Auto Insurance study uncovers this significant shift in consumer preferences. Comfort with embedded products like insurance and extended warranties is on the rise. But it's not just about comfort; it's about expectation, particularly among Millennials and Gen Z. They've come to expect them as part of the package.
What's driving this change? Simply put, it's about efficiency and convenience. It's not hard to imagine booking a flight and seamlessly adding travel insurance or purchasing a new phone and opting for an extended warranty—all in one go—because you've likely already done it. That's kind of 'one-stop-shop' experience is becoming normalized into every major purchase, and for good reason. It's easy and can create unexpected value. In the case of auto insurance in the dealership, that unexpected value is often savings on insurance when a car buyer needs it most.
83% of Millennials and Gen Z buyers have bought some form of embedded insurance in the last six months. The numbers speak for themselves. More and more Millennials and Gen Z buyers desire comprehensive solutions that simplify and add value to their lives.
For industries and businesses willing to adapt, this is a huge opportunity. By integrating insurance into the car buying process, for instance, dealerships and insurers can cater to the evolving consumer behavior.
Embedded insurance is no longer a novelty; it's going mainstream. It's a testament to the evolution of consumer preferences, where the car buying process is not just about the vehicle but about the entire experience that surrounds it. Forward-thinking businesses are poised to capitalize on this shift by offering customers a holistic, integrated approach to car buying and ownership.
Download the full 2024 Polly Embedded Auto Insurance Study, and stay tuned for more insights into the changing landscape of embedded insurance and its implications for businesses.
