ORA new survey from Chubb, a publicly traded property and liability insurer, reveals that the majority (56%) of financial executives involved in making global insurance decisions expect to generate more than 10% of their revenue through integrated insurance, within any given timeframe. than three years.

In Latin America, earnings expectations rose to 80% of executives surveyed, and 43% of them confirmed that their financial organization had generated more than 10% of revenue through integrated insurance to date, compared to only 20% of executives. globaly.

81% of executives in the world say that digital insurance that is integrated with websites and applications is no longer an option to be an essential offer. This lays the foundation for accelerating the adoption of insurance products across financial services platforms. This trend is most pronounced in emerging markets in Latin America and Asia.

The “Bank and Digital Wallet Race – Integrated Insurance Strategy”, a global survey covering 2,000 consumers and 200 financial executives, conducted in the second quarter of 2023, reports rapid adoption and investment of banks and Fintech in integrated insurance to meet growing consumer demands . More than half of consumers worldwide, and even more in the region (62%), are interested in purchasing larger amounts of insurance. In Latin America, 5 in 10 consumers (48%) believe digital is the obvious way to get it.

“The competition to win a bigger share of consumers’ digital wallets is increasing: Banks and Fintech are moving forward with expanding their insurance product offerings to deepen customer relationships, drive growth, and reduce their protection gap,” said Sean Ringsted, Chubb’s Chief Digital Business Officer.

“Digital insurance is already very popular among consumers globally. Financial service providers build trust and loyalty, while paving new avenues for growth by offering customers simple, relevant and affordable insurance coverage options. Integrated into the digital customer journey. As highlighted in reports, this is a global phenomenon, with companies in Latin America and Asia investing heavily in these digital insurance capabilities. Banks and fintechs in North America are also getting in on the race, but are not yet up to par with their counterparts in other regions,” said Ringsted.

WEAK IN CONSUMER DEMAND, LEADED BY DEVELOPING MARKETS

According to a Chubb survey, consumers are responding to the evolving risk exposure landscape with increasing demand for insurance. In general, 56% of consumers globally believe they are underinsured, i.e. they do not have adequate coverage. These numbers stand out more in certain markets: 62% of consumers in Latin America and 60% in Asia are interested in purchasing more insurance that protects not only their “stuff” but also their lifestyle.

OPPORTUNITIES FOR STANDING COMPANIES

Traditional banks and insurers have a unique opportunity to capitalize on this trend, especially in developed markets, while drafting insurance quotes in compliance with applicable insurance laws and regulations. Globally, nearly 60% indicated a high level of trust when buying insurance from traditional banks, while 58% indicated the same for established insurers. This is equivalent to 45% who stated a high level of confidence in buying insurance with exclusive digital insurance and 31% with exclusive digital banks. 55% of financial executives agree that established insurers have an advantage over them insurtech digital natives because they are trusted by consumers.

IN LATIN AMERICA, THIS DISCOVERY IS ALMOST 80%

“The Latin American and Asian markets have presented tremendous growth opportunities for banks and Fintech with integrated insurance,” said Gabriel Lazaro, Head of Digital, Chubb Overseas General Insurance. “Consumers see traditional banks and insurers as the gold standard in this space, and as a result, we’ve seen our worldwide network of digital distribution partners continue to grow. Global consumer demand is huge for integrated insurance, and we believe the next year the expansion phase will coming in developed areas and from established financial institutions.”

“The survey findings confirm what we have heard from our integrated insurance business partners across Latin America,” said Rodrigo Valiente, Chubb Digital Vice President, Latin America. “While integrated insurance revenue has been increasing, our partners in the region are focusing on the experience of their customers by ensuring that digital insurance offerings are a natural and seamless solution that doesn’t disrupt their journey.”

SURVEY METHODOLOGY

The results presented are based on a survey conducted by iResearch Services, the world’s leading first-party provider of consumer and professional data. The online survey was conducted during the second quarter of 2023 and the results are based on a survey conducted by 2,000 consumers and 200 financial executives globally.

Respondents represented all age groups, educational levels, and professional status. Consumers are divided into four regions: North America (500), Latin America (500), Asia Pacific (500) and Europe (500).

Financial executives represent established banking (52%) and fintech (48%) organizations, also split evenly across four regions: North America (50), Latin America (50), Asia Pacific (50) and Europe (50). ). Most Fintechs (84%) have revenues between $10 million and $500 million; most of the established banking organizations (89%) have AUM (Assets Under Management) of at least $1 trillion. All executives are involved in making decisions about insurance products, such as integrated insurance.

For consumers and financial executives, the region includes the following countries: North America: United States and Canada; Latin America: Brazil, Mexico and Chile; Asia Pacific: South Korea, Singapore, Thailand, Philippines and Vietnam; Europe: UK, France and Spain.