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How to build an automotive digital affinity insurance program in Asia

As the affinity insurance landscape evolves with rapid technological advancements, automotive companies still using legacy systems in their affinity insurance programs risk falling behind. Discover how building a digital affinity insurance program can streamline your operations and enhance customer satisfaction with our comprehensive guide.

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Many auto companies stay tethered to outdated legacy systems due to inertia or a lack of understanding of how digital programs can improve customer experience, audit procedures, identify fraud, and more. 

 

Building a digital affinity insurance program can help auto companies:

  • Enjoy a seamless user journey from registration, placement, quotation, and policy binding to claims reporting and processing.
  • Get real-time data and analytics such as aggregated claims and loss ratio for data-driven business decision-making.
  • Facilitate easy tracking of the program’s performance on a centralised platform.

How an auto dealer increased revenue by adopting a digital affinity insurance program

An auto dealer partnered with Marsh to diversify its revenue stream and improve its service experience. Marsh helped by designing and implementing an extended warranty program powered by Bluestream, Marsh's proprietary digital insurance platform, to deliver a comprehensive digital affinity insurance program for the client. With the new platform, the dealer is projected to increase extended warranty sales by 30% to 45%.

 

 

To support you in building your affinity insurance program, we share each step of the process as well as the complexities and challenges involved. 

7 steps to building an automotive digital affinity insurance program

Learn how you can enhance your customers’ satisfaction and improve operational efficiency in a competitive automotive landscape in Asia by building a digital affinity insurance program. 

  1. Analyse customer experience – ensure that your customer views the insurance purchase as an added-value product within your brand ecosystem and facilitate ease of purchase.
  2. Evaluate a risk partner – work with a reliable risk partner to secure and arrange insurance coverage for your affinity insurance program. 
  3. Assess tech requirements – ensure your platform governs how different disciplines work with one another to reduce disruption during implementation.
  4. Enhance brand proposition – partner with companies that can help ensure your marketing strategy complies with regional regulations while delivering an enhanced marketing approach.
  5. Manage claims process – ensure that claims notifications are sent to you from the outset to reduce bottlenecks and inefficiencies.
  6. Improve program performance – continuously optimise your program using data derived from the platform to drive greater customer value and satisfaction.
  7. Navigate regulations – consult a third party to assess your risk tolerance and assist you in navigating regulatory requirements.

Partner with a reliable risk broker to build a seamless digital affinity insurance program

Transitioning from legacy affinity systems to digital solutions can be complex. A comprehensive digital affinity insurance platform can help auto companies rapidly innovate and respond to demands in a competitive market. 

 

Marsh Asia has helped more than 10 world-renowned automotive brands, with over 400,000 extended warranty contracts and 4.3 million devices covered under affinity electronic contracts.

Embark on your journey to a competitive digital affinity insurance program with us

Download the guide or speak with our affinity team to find out more.

"Unleashing the potential of affinity insurance can generate new revenue and strengthen brand loyalty, yet the daunting complexity and regulatory hurdles often deter organisations. We tackle these concerns in this guide by demystifying the process and providing invaluable insights at each step."

Phil Hobson
International Affinity Leader, Marsh

Is your organisation looking to boost brand loyalty, customer satisfaction, and revenue?

 An affinity or embedded insurance program might be the solution you've been searching for.
To help you decide, we've compiled a 10-point checklist.

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FAQs

What is affinity insurance?

An affinity insurance program provides insurance coverage to meet the specific needs of a group — made up of either individuals or businesses. This can apply to members or customers of an organisation like yours.

 

Your organisation becomes the “sponsor” of the affinity program, enabling you to offer an insurance solution that is specific and relevant to your members or customers — including specific coverage areas which generic insurance policies are unlikely to address.

What is embedded insurance?

 Embedded insurance is one specific type of affinity insurance, where you offer insurance within the commercial transaction of another product or service. The aim is to reach customers at the right place, at the right time, and with the right offer. By integrating the insurance during the sales process, you can offer protection at the moment a customer purchases a product and with cover that meets their specific needs.

What are the benefits of an affinity insurance program?

We tend to find there are five key benefits you can achieve with an affinity insurance program.

  1. Revenue diversification: Add new revenue streams to your business and grow your bottom line.
  2. Differentiate your offer: Stand out from the competition with a product that delivers more for customers.
  3. Increase sales: Enhance the value proposition of your products and unlock new opportunities.
  4. Strengthen brand loyalty: Deliver products and services that keep customers coming back.
  5. Improve customer retention: Get more data on your services and improve retention.
What sectors are a strong fit for an affinity insurance program?

Not every product or service will work as the basis for an affinity insurance program. If you sell a product or service that your customers/members do not see a value in insuring, trying to promote insurance coverage will not create the desired benefit.

 

However, you may be surprised at the wide breadth of sectors in which an affinity insurance program is a strong fit. If you operate in any of these industries, we strongly suggest reaching out to Marsh to discuss a potential affinity opportunity (please note that this is not an exhaustive list):

  • Automotive
  • Associations (trade, professional, and general)
  • Building and construction
  • Education providers
  • Equipment and consumer electronics
  • Estate agents/property managers
  • Financial institutions
  • Franchises
  • Logistics
  • Sharing economy and mobility
  • Small and medium-sized enterprises (SMEs) and micro businesses
  • Sports, entertainment, and media
  • Telecommunications 
Why is affinity insurance complicated to set up?

Setting up an affinity insurance program can be challenging due to various factors. We have outlined the five main factors below.

  1. There’s no one-size-fits-all approach when it comes to developing an affinity insurance program. Each program is customised to the unique characteristics and needs of your customer or member base and organisational structure.
  2. Navigating the regulatory landscape can be daunting, as insurance regulations vary across jurisdictions and can be subject to change.
  3. Establishing partnerships with insurers, negotiating contracts, and ensuring compliance with legal and regulatory requirements can add further complexity to the process.
  4. Understanding your customer or member base to identify the type of insurance product that will meet their needs and developing the distribution strategy adds an additional layer of complexity.
  5. Without a high degree of digital expertise, achieving a seamless digital experience and integrating current technology systems without an expensive overhaul represents a challenge.
How can this guide help me set up an affinity insurance program?

At Marsh, we have demystified the process of setting up an affinity insurance program. We take you through each step of the process from evaluating whether affinity is a right fit for you, understanding your customer base and sales journey, evaluating risk partners, assessing your digital capabilities, leveraging marketing and data insights, considering the claims process, and highlighting the regulatory issues for expanding across borders.

 

We apply methods and techniques that we have learned from decades of offering affinity programs. These form the basis of an iterative process by which we constantly look to improve the affinity client experience based on our deep understanding of the market and the impact of the latest innovation. Our expert team provides an end-to-end solution to create a compelling affinity offering.