Page 21 - Turkinsurance Digital Magazine

21

The way insurance products are presented and delivered to users has Embedded Insurance Initiatives in Türkiye
been rapidly transforming in recent years. One of the key players
in this transformation is “embedded insurance”, which refers to Although not yet as advanced as global examples, steps taken
the automatic or optional offering of insurance services during toward the embedded insurance model in Türkiye are increasingly
the purchase of a product or service. In other words, the user is noteworthy. Initial applications of these integrations have begun to
protected against risks while making a purchase. appear, particularly in the e-commerce and transportation sectors.

This model, which removes insurance from being a separate buying • Trendyol offers special coverages against risks such as screen
process and discreetly but effectively integrates it into consumers’ breakage or theft for electronic purchases, presenting these options
lives, is rapidly gaining ground in the global market. Moreover, it to users at the payment screen.
is not only next-generation tech companies that are embracing this
model—traditional insurance companies are also starting to adopt • Turkish Airlines suggests integrated travel health insurance,
it. cancellation coverage, and baggage protection during the ticket
purchase process.
Embedded Moves from Global Tech Giants
• Yolcu360 and some car rental platforms have directly embedded
Digital platforms such as Uber, Amazon, Booking.com, and Revolut casco and damage coverages into their reservation systems.
are among the pioneers of the embedded insurance model. Thanks
to these platforms, millions of users are introduced to insurance • It is also known that Getir and similar platforms are preparing
coverage without having to take any additional steps. insurance integrations for courier and delivery safety.

• Uber automatically offers insurance to both passengers and drivers Behind these models are often collaborations between insurance
against accidents or unexpected events that may occur during rides. companies and insurtech startups. Working with API-based
solutions, these startups can quickly and flexibly integrate embedded
• Amazon, particularly in the German and UK markets, provides insurance offers into various platforms.
insurance options against device damage during the ordering
process for electronic products. What Does the Sector Think?

• Booking.com has directly integrated coverage options such as Insurance companies view embedded models as an opportunity
cancellation, health, and baggage insurance into its reservation to “bring the customer touchpoint earlier” in the process. It is
system. especially believed that microinsurance, as well as short-term
coverages like health and travel insurance, can be delivered more
• Revolut supports its card users with coverages that are effectively through this model.
automatically activated during purchases, such as in cases of flight
delays. Officials from the Insurance Association of Türkiye (TSB)
emphasize the importance of establishing a regulatory framework
With these applications, insurance becomes a form of protection for embedded insurance. This is because key issues such as
that users are included in almost without realizing it. And because transparency, disclosure obligations, and consumer protection are
it is offered at the point of sale, conversion rates are significantly still under discussion in the context of these models.
higher than with traditional sales methods.
According to industry experts, embedded insurance is not just a new
Why Is the Embedded Model Important? distribution channel, but also an opportunity to build meaningful
Embedded insurance is not merely a technical integration model; connections with users. Especially in today’s insurance landscape,
it also represents a new approach to insurance aligned with user where digitalization, personalization, and trust-based sales
behavior and the digital experience. approaches are paramount, this model stands out as one of the
transformative forces in the sector.
Through this model:
• Insurance penetration increases: Especially younger genera- Info Box: What Is Embedded Insurance?
tions and uninsured individuals are introduced to insurance for the
first time. Embedded insurance refers to offering insurance coverage
• User experience is simplified: Instead of complex policy de- automatically or optionally at the time of purchasing a product
tails, easily understandable coverages are offered with just a few or service, as part of the same transaction. Typically, the user can
clicks. accept the coverage without needing to take an extra step.
• New sales channels emerge: Platforms and e-commerce sites Example Coverages:
become strong alternatives alongside traditional agency and broker
channels. • Travel health and cancellation insurance
• Tailored solutions can be developed: Micro coverages are cre- • Electronic device protection plans
ated for every moment such as travel, shopping, accommodation, • Rental car damage coverages
and healthcare. • Return/damage protection for online shopping