Cover Genius redefines insurance with embedded protection technology

The insurtech eyes expansion in Asia, leveraging on the symbiotic relationship of digital and traditional insurance to tailor policies for diverse markets.

The core of Cover Genius’ success lies in its strategic partnerships with traditional insurance companies. However, what truly sets it apart are its advanced technology and customer-focused approach.

Cover Genius is an insurance technology company that enables “seamless protection” through its embedded services.

Embedded insurance is somehow a top-up service, a protection you never knew you needed. These types of plans come in handy, especially in physical purchases. Examples of such are plane tickets, automobile purchases, or even gadgets.

For 2023, eMarketer forecasts that the overall retail sales across Asia will amount to $12.8t, displaying a growth rate of 5.6%.

Within this context, e-commerce sales are projected to achieve $3.8t, demonstrating a growth rate of approximately 10.5%.

Of this e-commerce sales figure, $3.1t will be attributed to mobile commerce, which is anticipated to expand by 11.2% in 2023.

This surge in mobile commerce is set to constitute 80.3% of the entire e-commerce sales in Asia.

In an exclusive interview with Insurance Asia, Barney Pierce, chief business officer for Asia Pacific (APAC) and Europe, Middle East, Africa (EMEA) at Cover Genius said there is a rich overall embedded insurance landscape and the partnerships behind them.

What a genius coverage!
The global insurance landscape is diverse, spanning numerous markets and lines of business.

Traditional insurers often struggle to cater to the varied needs of customers across these markets.

Cover Genius, on the other hand, has harnessed its technology and global licensing framework to distribute any line of insurance across any market.

“According to Oliver Wyman, who did some research… 50% of consumers across six APAC (Asia Pacific) markets, including Singapore, stated that actually traditional insurance companies were lagging behind other industries in terms of their responsiveness, and how well they use technology, and the provision of really personalised products,” Pierce said.

This ability to provide tailored solutions across markets and lines of business simplifies the process for partners, as they only need to integrate once.

Moreover, the flexibility to switch insurers in response to market changes ensures a smooth and adaptive insurance experience.

However, Cover Genius’ competitive advantage does not stop at technology – its differentiation is ingrained in their DNA, said Pierce.

The company collaborates closely with partners to understand customer journeys and create embedded protection solutions that cater to specific needs.

Unlike the one-size-fits-all approach of traditional insurers, Cover Genius focuses on crafting customised policies that are easy to buy, understand, and claim.

Understanding barriers
Whilst Cover Genius does lead the way globally with respect to harnessing technology for embedded insurance, there are unique challenges and opportunities when enabling e-commerce companies to self-insure in Asia.

One challenge lies in the existing contracts between partners and traditional insurers, since these contracts often have long durations that limit the scope of any immediate collaboration.

Nevertheless, Cover Genius is actively engaging partners to showcase their capabilities and explore opportunities for the future.

“But, the other thing is it does come down to prioritisation of tech resources. Oftentimes, insurance or protection is not the core business of our partners,” Pierce explained. “It’s a matter of building really strong business cases for them to prioritise embedded protection over other things they might need to do; like expanding into new markets for their core business or building on their core infrastructure.”

Another obstacle stems from the fact that insurance might not be the core focus of their partners. Convincing partners to prioritise embedded protection over other initiatives requires building robust business cases.

Cover Genius mitigates this challenge by offering a technology-driven solution that enhances the use case and strengthens the business proposition.
The approach simplifies the integration process and aligns insurance with partners’ broader objectives.

Navigating the regulatory landscape across different countries poses yet another challenge. The insurance industry is subject to diverse regulations in each market, making expansion a complex endeavour.

But Cover Genius understands this complexity and engages with governments and industry organisations to shape industry standards.
By actively contributing to regulatory discussions, the company aims to uplift the entire industry, particularly in emerging markets like Southeast Asia, Pierce said.

Cover Genius targets set
Whilst Cover Genius does not disclose specific targets, its ambitious growth plans are palpable. Their scalable technology and strong demand for customised protection position them for substantial expansion.

The company is eyeing markets in South and Southeast Asia for investment and expansion, with a particular focus on India and Korea. This momentum underscores their commitment to embracing opportunities and propelling insurtech advancements.

One of Cover Genius’ strategic moves includes the acquisition of Clyde, a company specialising in embedded solutions for retail customers and warranties in the US.

This acquisition holds immense promise, even for the Asia market, Pierce emphasised. It offers a streamlined solution for small and medium enterprises, and retailers seeking efficient integration. 

This expansion could provide Asian businesses with a valuable proposition, simplifying the process of integrating insurance into their offerings.
“It’s a really strong value proposition. So we certainly see plans for expansion in Asia. And we’re working through that.” Pierce said.