In a tougher economic landscape, insurance partnerships can be an effective way for businesses to secure additional revenue streams over and above their core product proposition. Finding a partner that understands your business, the needs of your customers and will work with you to create a bespoke programme can increase retention, drive ancillary revenue and enable true differentiation in what are often crowded, competitive markets.
But what drives a strong partnerships proposition? And what should businesses look for when exploring potential partnership opportunities?
“In today’s world, risk is evolving a lot and at a rapid pace,” says Dónal Corcoran, Regional Vice President – Consumer Lines, Continental Europe at Chubb. “Today, there are various affinity spaces emerging where people who have common interests and linkages are finding new ways to protect their lives, their families and their possessions." Leon Burton, Head of Accident & Health Corporate and Affinity UK at Chubb, agrees: “Wherever you have a group of people, there’s a commonality. We look into that and develop the best proposition and terms for that group of customers.” These different cohorts – whether customers, employees or subscribers – are not only looking for insurance coverage, but for an easy process in which this can be acquired.
A customised approach
Every customer is different; although Chubb’s partnerships expertise means that the company has a range of product propositions ready to roll out, programmes are honed and refined to target each customer base.
“The kind of approach we take is tailored to the group we’re targeting,” says Leon. “We take the time to understand the needs and nature of the business we’re looking to go into partnership with, in order to formulate how best we can support them.” Chubb can draw on its experience with clients from a wide range of industries, as well as its data-driven analysis of sectors and customer needs. Alignment is always key: “Our clients care deeply about the touchpoints they have with their end-customers; they have a core business and any insurance offering has to supplement their key strategies in order to add real value and be successful,” explains Dónal.
The scope of a partnership programme varies in terms of product proposition and distribution. A neo-bank or a gig economy platform will have very different expectations and customer touchpoints compared to those in the retail or automotive sectors.
As an example of its tailored approach, Chubb recently launched a new COVID-19 financial protection product for independent workers in the gig economy. The simple online product is available through a variety of gig platforms. It provides competitive, immediate protection for this at-risk and vital group of workers that may otherwise struggle to secure insurance through traditional channels.
Employee benefits is another area many companies are interested in. “Employers are constantly looking for ways they can better engage with their employees,” says Leon, with facilitating access to benefits being a popular choice.
Through its recent partnership with neo-bank, Revolut, Chubb has further established a strong position as the insurer of choice for agile, innovative, digital-first businesses looking for an insurance partner.
Chubb Studio - their flagship digital distribution proposition - is key in developing an embedded insurance programme for partners. It provides access – in a tailored, streamlined way – to tools that will help to create the right offering, with each being easily customisable. Partners can choose which work best for them and the ways in which they will set up their programme – with Chubb expert advice available along the way. Ready-to-use microsites, APIs, online payments and subscription services, and marketing automation services are just some of the tools available in Chubb Studio.
The seven partnership steps
As well as customisation, collaboration is integral to a strong, successful partnership. Chubb develops a dialogue that continues through every step of the journey. “We bring a one-stop shop approach for our business partners, taking care of everything from compliance and data to building or integrating a purchase path and marketing plan,” notes Dónal. “We bring a fully-rounded solution to the table, offering all of Chubb’s resource depth to mitigate any pain points for our clients at all stages of the insurance programme build.”
The partnership journey starts with discovery: learning about and finding ways to meet partner needs. “We first make sure we understand the motives of the partnership,” says Leon. “We make sure we’re aligned.” Product portfolios and options are discussed, with Chubb helping partners to choose a diverse range of products that will optimize revenue.
Distribution is the next step. A customer journey is developed that best fits the target group, whether it’s by responding to a customer need or generating a need through the creation of a new product. Following on from this is creating a compliant programme. “The compliance landscape is extremely important,” says Leon. “Especially in the UK, there are quite complex regulations around who can sell what and what is deemed selling. It all needs to be mapped out and understood.” A product conduct committee is set up to review and approve the programme, ensuring it is compliant every step of the way.
Once a programme has been carefully planned and developed, it’s ready to launch. Seamless integrated technology is key here, so that programmes are user-friendly for both the partners and end-customers. Chubb Studio can provide a range of technological solutions. “It connects into the individual partnership journey and is really flexible,” says Leon.
Post-programme launch, Chubb continues to work closely with its partners. “It doesn’t stop at launch but rather is a continuous interaction with our business partners, adapting to changes in the business environment and the end customer’s reaction to the various offerings. "We are constantly tweaking the programme to ensure it runs well both for the business partner and for Chubb,” says Dónal. Using data-driven insights, revenue opportunities can be optimized. By analysing sales channels in depth, the most effective product options and distribution channels can be identified and leveraged.
The final two steps on the journey consist of handling customer feedback and assessing and refining the model. Strong customer service ensures high retention levels, and evaluation means that programmes can be refined.
Diversifying revenue streams and developing a programme that meets customers’ needs can be complex, but Chubb’s functional know-how, insurance programme expertise and technological abilities help to cut through some of these complexities, bringing audiences specifically targeted products, and helping partners achieve their ambitions. Chubb creates true partnerships, getting to understand a partner’s core business and suggesting – or creating – the most apt programme, based on the team’s extensive expertise across a range of sectors.