Creating new roads to clients through digital platforms

As a Group we consistently look to “what’s next” on the horizon. This translates to constantly future proofing every aspect of our business, including our distribution model.  

Under the umbrella of Ageas’s Impact24 strategy, we are exploring new ways to reach clients, such as embedded insurance. By leveraging on new Digital platform partnerships, we can seamlessly embed products into online sales journeys. “And we’re already seeing some strong results,” as you’ll discover in the interview with our experts Viola Zsédely-Takács and Valér Merényi with the Open & Embedded Insurance Observatory Report 2024.

Read more about the latest trends and developments in the Open & Embedded Insurance Report 2024.

Interview with Viola Zsédely-Takács, Business Development Director New Growth Engines, and Valér Merényi, Strategic Program Director Business Lead. 

Q. Ageas has a strong record in working with intermediaries and in partnership mode - how do you see the future of insurance distribution? 

Valér: Within Ageas we tend to think beyond the parameters of intermediaries when we consider the future of distribution. We think also about “partnerships”, our DNA. While we continue to invest and remain committed to physical distribution including bancassurance, brokers and agents, we recognise that increased digitisation keeps us close to the customer and creates long-term growth opportunities. Through our Impact24 strategic plan we are pursuing all routes to the customer, including ecosystems and digital platforms. We’re evolving from a pure insurer provider to insurance collaborator. Our goal over time is to become the partner of choice for digital platforms, replicating the success we have traditionally enjoyed as the partner of choice in bancassurance.

Q. Ageas has made impressive developments in its digital transformation journey – what’s your vision when it comes to preparing for the future of insurance? 

Viola: The world is moving more and more in the direction of “open insurance”. In mature markets, we are seeing successful examples of insurance offered on platforms where the customer is already engaged and active. Insurance is bought there in a more contextual way, reflecting the way people live, how they transact and make purchases every day, even ‘on the go’: the essence of embedded insurance. It’s about creating simplicity and convenience in a safe environment.  

Q. What do you look for in your digital platform partners? 

Viola: It is fair to say there are some common “must haves”. Our ideal strategic partner enjoys a large digital customer base with engaging digital journeys where our products can be seamlessly embedded in a meaningful way. They are a co-investor in the business long-term but also a co-developer as we experiment together over time. Scale and exclusivity matter, as ticket sizes tend to be smaller, so working with one or two exclusive partners is desirable. But there is scope for many other smaller partners too. Some are more transient in nature, providing both parties short term opportunities to experiment. Others may allow us to reach new customers and parts of society difficult to penetrate. Valér: It’s not just what we look for in a partner, but also what partners want from us. This new generation of partners look for signs of customer obsession, agility and speed, a customizable and flexible product portfolio (fit for purpose), an impeccable reputation, and an entrepreneurial team. 

Q. How is Ageas working in the embedded insurance space and what lines of insurance are you focused on? 

Valér: Predictably our embedded insurance journey kicked off with Digital Banca as this plays to our strengths and core expertise. Targeting retail and SME clients, our initial product focus was on Credit Life. From Bancassurance we progressed to Fin Techs and e-wallet providers working alongside new partners. And with experience also in e-commerce and Telco’s we are today active in both Life and Non-Life segments. 

Viola: Success is dependent on two prerequisites. Firstly, you need to master the key capabilities allowing you to deliver a customised product that’s seamlessly embedded into the customer journey. Ageas partnered with eBaoTech Corporation, to provide us with the needed tech & integration capabilities to accelerate our digital transformation. Secondly, solutions need to be developed at high pace and reach scale. Consequently, the knowhow and assets we develop need to be easily transferable to a new market, a new partner, and other products. This mindset of reusability enables our expansion across Asia and into Europe. 

Q. How do you see the trajectory of embedded insurance, and what is predominantly driving this? 

Viola: Embedded insurance is here to stay, and it will become a significant channel. Digital, mobile apps and online tools are pervasive in our everyday interactions and purchases. We trust these channels with our money and our lives, so embedded insurance is entirely logical in this context, though not a given. Ultimately, it’s all about customer adoption … and there is still a way to go there. Valér: We are now past the set-up phase and we want to scale-up our efforts from Asia to Europe and from Life to Non-Life products. Next to digital banca, e-commerce and telcos, we aspire to include other verticals over time, such as health and travel.

At Ageas Federal Life Insurance (AFLI) - our Life business in India - we have built the foundations of a new distribution channel. 

Providing the perfect conditions for embedded insurance, India is a market of scale, high digital adoption, open finance regulation, and high growth rates. 

The set up 

Through AFLI we established the key capabilities for the embedded business: reviewing underwriting, simplifying products, adapting pricing, designing customer journeys, and implementing a flexible and agile middle office for the digital platforms' business with eBaoTech. 

The first achievement was embedding credit life coverage into the digital loan journey of our bancassurance partner, Federal Bank, quickly reaching peak attachment rates of 20% - even with a competing product embedded in the same journey. 

Scaling-up 

Through an API management portal, we developed a pipeline of potential partners to scale up this new channel. By re-using existing digital assets as much as possible we reduce our time-to-market as well as costs. Today we are live with seven new partners, embedding micro credit life coverage into micro-loan journeys. 

As we continue to grow our business with these partners through continuous improvements in the customer journey, we are exploring new partners, new products, and new markets. 

Results 12 months after launch

• 10+ partners
• +375k policies sold
• 20% peak attachment rate