In times of trade tension unease, digital insurance provides reassurance to purchasers
In an era of increasing political frictions and tariff tensions, the United Kingdom, one of Europe's most digitally driven car markets, finds itself particularly affected. Amidst this turmoil, Original Equipment Manufacturers (OEMs) are faced with numerous challenges, especially in growing across the continent. Quentin Colmant, CEO & Co-Founder at Qover, discusses how embedded insurance can help OEMs reduce frictions and retain customer loyalty.
Embedded insurance, a dynamic and data-driven approach, transforms insurance from a traditional, standalone cost into a recurring touchpoint that complements the vehicle ownership experience. This integration allows insurance to adapt to regulatory and market shifts, providing a strategic advantage in volatile markets.
One of the key benefits of embedded insurance is seamless activation and compliance. Insurance coverage can activate immediately upon vehicle delivery or use, dynamically adjusting to cross-border liability or tariff changes without user intervention. This reduces administrative delays and downtime, providing a smoother experience for customers.
Another advantage is continuous data integration and risk management. By leveraging real-time OEM vehicle data, insurance premiums can be usage-based and competitive. Claims data loops back to engineering teams to improve vehicle design and reduce future risks.
Embedded insurance also preserves warranty standards and directs repair flow. Insurers work with OEM-authorized service centers to ensure repair quality meets OEM standards, protecting brand integrity and opening after-sales revenue opportunities.
Moreover, embedded insurance enhances customer engagement and loyalty building. Every service or insurance interaction becomes an opportunity for OEMs to update software, upsell features, or reinforce brand loyalty, keeping customers connected and satisfied beyond the showroom.
In volatile markets, embedded insurance platforms can adapt to geopolitical and market volatility. They can automatically navigate regulatory changes, tariff impacts, and trade challenges by maintaining compliance and providing uninterrupted protection, giving OEMs a competitive edge.
Lastly, embedded insurance leverages advanced technologies. AI-powered telematics and insurance platforms enhance underwriting, claims automation, and customer service, boosting efficiency and customer experience in a volatile environment.
In conclusion, embedded insurance helps OEMs overcome friction and sustain customer loyalty by making insurance a transparent, flexible, and integral part of the vehicle ownership journey. This approach especially aids navigating the operational and financial instability caused by tariffs and trade disruptions, turning insurance into a strategic advantage rather than a cost center.
[1] Qover. (2022). Embedded Insurance: The Future of Automotive Insurance. Retrieved from https://qover.com/en/blog/embedded-insurance-future-automotive-insurance
[2] Colmant, Q. (2021). The Role of Embedded Insurance in the Automotive Industry. Retrieved from https://www.linkedin.com/pulse/role-embedded-insurance-automotive-industry-quentin-colmant
[3] Qover. (2021). Telematics Data: The Key to Personalised Insurance. Retrieved from https://qover.com/en/blog/telematics-data-key-personalised-insurance
[4] Qover. (2021). The Impact of AI on the Insurance Industry. Retrieved from https://qover.com/en/blog/impact-ai-insurance-industry
- In volatile markets, technology-driven insurtech solutions, such as embedded insurance, can help Original Equipment Manufacturers (OEMs) adapt to geopolitical and market changes, providing a strategic advantage.
- By integrating insurance with motor vehicle events, embedded insurance can seamlessly activate coverage upon vehicle delivery or use, dynamically adjusting to cross-border liability or tariff changes without user intervention.
- Regulation is another area where embedded insurance can help OEMs, as it allows insurance to adapt to regulatory shifts, ensuring compliance and providing uninterrupted protection.
- In the automotive business, embedded insurance can enhance customer engagement and loyalty, making every service or insurance interaction an opportunity for OEMs to update software, upsell features, or reinforce brand loyalty.
