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What Is Embedded Health Insurance & How Does it Work?

Embedded health insurance is a major talking point in the insurance industry. It’s essentially a way of allowing customers to purchase cover as part of a wider transaction, without making a separate purchase or interrupting the sales journey.

In this post we’ll explore how embedded insurance works in the context of health cover and discuss some of the companies and businesses that might benefit from embedded health insurance.

What is Embedded Insurance?

Embedded Insurance is cover that’s integrated as part of a product or service. With embedded insurance, customers have the option of adding cover to a separate purchase.

Examples of Embedded Insurance

Examples of embedded insurance might include:

  • Letting customers get travel insurance when they purchase a plane ticket or holiday.
  • Many banks add travel and breakdown insurance to some of their paid bank accounts.
  • A real estate company offering home insurance as part of their service.
  • A mobile phone shop offering personal property insurance as part of a new phone purchase.

What Are The Benefits of Embedded Insurance?

Embedded insurance gives consumers a more flexible and cost-effective approach to insurance. They only have to buy the insurance they need when they know they’re going to use it. With standard insurance products, customers may sometimes feel like they’ve paid for something they may never even need.

Take travel insurance, for example. Customers may take out a dedicated insurance policy to manage the risks associated with international travel. But during the recent pandemic, many people were simply unable to travel for more than a year. So anyone who’d bought travel insurance in advance may have felt as though they’d overpaid.

Yet with embedded insurance, customers can purchase travel insurance when they buy a plane ticket, or when they check into a hotel. That’s to say that customers can buy insurance cover when they know they’re going to use it. And they can do so as part of a wider purchase, without having to shop around for the best deal, and without interrupting their customer journey.

This is a lot more convenient and affordable for the customer. At the same time, it allows businesses to offer greater value to their customers, which may lead to more sales through word-of-mouth recommendations.

How Does Embedded Insurance Work For Healthcare Cover?

Embedded health insurance allows for businesses and companies to offer specialist health cover to their employees and customers – even if they’re not an insurance or healthcare provider.

Examples of Embedded Health Insurance

Examples of this might include:

  • A hotel or airline offering customers overseas medical cover as an add-on to their trip.
  • Gyms and sport clubs offering cover for physiotherapy as part of membership.
  • Financial services offering life insurance policies as part of other financial products.
  • Businesses offering private medical or dental insurance as part of an employee benefit package.

Want to Add Embedded Healthcare Insurance to Your Current Offering?

At Capacity Insights, we specialise in helping businesses and companies provide their people with flexible and comprehensive healthcare cover.

We can help you deliver a dedicated healthcare insurance app. This will let your employees access their cover round the clock, wherever they are in the world. They can make appointments and claims at the touch of a button, and even see a doctor face-to-face on a video call.

You can let your employees bypass the long NHS waiting lists and get the treatment they need as soon as they need it. And with our fully automated claims settlement process, your employees will never have to worry about the cost of treatment.

Whether you’re looking to invest in your first embedded health insurance plan, or you want to change or add to your current package, we’re here for you.

Get in touch to find out more and see how we can help you.

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Capacity Insights
Windsor House
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+44 (0)208 763 4888

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