Trov, the Embedded Insurance Company
Written by Scott Walchek April 07, 2021
Today, we announced a first wave of companies who will use Trov’s capabilities to offer insurance - embedded within their digital applications. Our technology, which has matured significantly, now enables any company with a digital presence to easily include insurance quoting, binding, managing, billing, and claiming into their existing native apps and websites. This is our evolved proposition: Trov is the embedded insurance company, enabling consumer brands to offer all digital insurance to their customers.
Embedded insurance (digital insurance products offered in the context of non-insurance applications) is in its infancy, and it’s going to revolutionize insurance distribution. As with the banking industry that has seen a significant portion of its customer acquisition shift to all-digital channels, the insurance industry is undergoing a similar shift. In a recent report, management consulting firm McKinsey estimates that digital ecosystems (i.e. popular e-commerce sites, super-apps, social platforms, and the like) will generate up to 30% of global P&C insurance sales by 2025; that’s a staggering annual sum of greater than $600B gross premiums. Since these emerging neo-distributors are digitally-native, cloud-hosted, engineering-forward powerhouses, the shift is naturally being enabled by technologies that are easily implemented by the digital platforms.
Every Company a Fintech…
Angela Strange, partner at VC Andreessen Horowitz wrote, “In the not-too-distant future…nearly every company will derive a significant portion of its revenue from financial services”, referring to the emerging trend in the distribution of financial products by other-than-financial enterprises. One need not look far to see evidence of this change - from Uber Pay, and Apple’s Credit Card, to Grab Taxi’s payments, investment, and insurance offerings, and Rappi’s (LatAm delivery platform-cum-superapp) recent bank charter. Starved for new digital products with recurring revenues, every company that has learned how to efficiently capture new customers is turning to financial products and services to slake the demand. Consumers and businesses are coming to expect that day-to-day financial tasks will be carried out within their favorite brands’ applications. In banking, the proliferation of digital services like payment processing, card issuing, and fraud prevention are being propelled by a handful of infrastructure players (Stripe, Marqeta, and Plaid, for example) that have abstracted the complexities of the underlying product stacks and services, making them easily adopted by the businesses that can deploy them.
Trov is Infrastructure…
Trov is following a similar infrastructure approach, acting as the ‘plumbing’ that connects underwriting capacity and insurance products to the neo-distributors who wish to offer digital insurance to their customers. To that end, we’ve spent the better part of the past 2 years engineering capabilities, securing underwriting partnerships, encoding insurance products, and developing processes in order to provide modern digital ecosystems with everything needed to make insurance a seamlessly integrated offering within their customer apps. Trov does all the heavy-lifting: abstracting the immense complexities resident in the insurance value-chain into elegant, robust APIs and UX Templates so that companies of any type and size can concentrate on delivering the most delightful user experience to their customers.
First Wave of Partners
Our first cohort of five UK consumer brands (Utilita, MoovShack, OpenBrix, Love2Rent and MovingHub) will each promote renters insurance to their customers who are using their popular digital services. For example, a brand partner offering their service via an application will promote renters insurance using Trov’s tools and services. This contextual offer, seamlessly woven into the app’s user journey, benefits the partner’s customers by making it simple to get protections that they otherwise would have to seek out, reducing the coverage gaps that are prevalent especially with emerging generations. Furthermore, our partner benefits by receiving revenue from a new product while increasing their customers’ lifetime value. Eventually, with Trov’s insurance plumbing in place, all our partners will be able to offer new lines of insurance with minimal additional investment in software development.
Trov provides our distribution customers (who we refer to as digital consumer brands - or DCBs) three methods by which they can offer digital insurance products. The first method is to use Trov’s robust API’s and UX Elements to build insurance (quoting, selling, billing, managing, and claiming) contextually into an existing application. A second method is to White Label (affix their own brand to) an existing insurance application. And, third is to use Trov’s referral toolkit to offer insurance branded by one of our underwriting partners. Over the coming months we’ll launch many more partners adopting each of these methodologies, with some selecting to use two or even all three of the methods to learn how their customers engage with an insurance offering.
Any P&C product, any underwriter, all distributors
One of the core tenets around which we’ve architected the embedded insurance platform was that we would remain agnostic with respect to both the underwriters with whom we work, and the insurance products that would be offered via our platform. In staying independent of a single underwriter (unlike a Managing General Agent - MGA - which is tied to a single carrier and therefore a single portfolio of insurance products), we are able to offer a broad selection of insurance products to our distribution partners. Having a diverse group of carriers with whom we partner, we trade as a digital affinity broker for any size and number of consumer brands. This independence is important to our distribution partners as they are seeking to offer their customers multiple insurance products throughout their life times.
Since 2016, when Trov pioneered on-demand insurance with micro-duration policies, we’ve occupied a unique position in the digital transformation of the insurance industry. During the three years (2016-2019) of a direct-to-consumer proposition, we had an up-close view of the ways in which consumers engaged with insurance when it was delivered to them on their mobile devices, and most of the friction was removed from the value chain; we learned how they engage, what they care about, and the most effective journey with which to bring them immediate value. Additionally, given that we never absorbed balance sheet risk, opting instead to partner with underwriters on 5 continents, we were privy to (a casualty of?) the challenges that carriers faced chasing the maturing expectations of the digital-native, while grappling with the constraints of their suddenly outmoded legacy technology.
With the rise of banking-as-a-service as a harbinger of the changes afoot, it’s evident that there is an opportunity to occupy an insurance infrastructure space that is neither in direct service to the underwriters back-office, nor the CAC-burdened direct-to-consumer proposition. Now, five years on, there’s a kind of natural settling from both consumers and carriers. Consumers are expecting many of their most common financial transactions to be built-into, or at least closely adjacent to their most frequented digital platforms. And carriers, for their part, are recognizing that new pools of digitally-native customers will be made more accessible by rethinking their affinity marketing strategies in light of the opportunities enabled by technology. By Trov.
Therein is the gap that Trov, with its technology, capabilities, and informed perspective is filling: connecting underwriting capacity with the new ways of distributing insurance - embedded into the user journeys of popular digital applications. That’s why Trov is becoming the embedded insurance company - enabling consumer brands to offer all digital insurance to their customers. Stay tuned, as we’ll be announcing fresh batches of partners, and highlighting how they’re using Trov’s capabilities to enhance their offerings.
If you’re interested in learning more about our Embedded Insurance Solutions, please visit our contact page.