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Case study

A flexible embedded car insurance programme to improve customer experience

Marsh helped a multinational finance company build an affinity insurance programme across Europe.
Car dealer

Marsh helped a multinational finance company build an affinity insurance programme across Europe.

A problem faced by most car dealerships

Maintaining a stock of new and used cars for customers to quickly choose from creates a problem for car dealerships around the world: What to do with the ageing, depreciating stock that isn’t being bought?

For decades the answer has been: Do nothing. But the rise of the sharing economy made short-term leases more popular. A large multinational company that offers solutions for new car purchases saw the potential in that dormant stock. It wanted to create a platform for users to subscribe to leasing a car or purchasing a vehicle outright, no matter the manufacturer, new or used, across Europe.

What type of insurance coverage can be provide to end-users via an affinity programme?

An affinity embedded insurance programme guarantees all end-users — from Riga to Valencia and beyond — the same level of coverage. Once the end-user has been vetted and meets the criteria, they can receive coverage that includes comprehensive insurance, roadside assistance, maintenance, tyre change, and personalised customer service as part of their subscription.

Because the client obtained the same insurance coverage across Europe on behalf of the end-users, the signup process is simple. Once an end-user has downloaded the app and verified their identity, they can simply log in, choose a vehicle, and pick it up.

How do you unite rivals and work seamlessly across country borders?

Manufacturers could create a programme offering their vehicles to users on a subscription basis. However, the limited number of vehicles and locations can lead to prohibitive costs. Combining all manufacturers, their stock, and dealership networks means that economies of scale can make the idea viable.

Creating such a network across country borders was a challenge that required Marsh to use its global reach and local knowledge to overcome a number of hurdles. A major challenge was to offer the same service and product to end users across jurisdictions; using their market leading data and analytical skills, Marsh specialists found a solution.

Although companies in each country have their own insurance providers, the end-user of the service will feel a seamless transaction. Marsh used our Bluestream technology solution to create the app and website — a key differentiator in our offering.

Marsh is more than a leading global insurance broker and risk manager. We use digital solutions that offer a smooth journey to end users, and provide peace of mind to clients. Contact one of our advisors today to see how we can help you mitigate the risks you face and realise your vision.

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