Property owners want embedded insurance, says Cover Genius

8 December 2022

Cover Genius’ latest report says a rising segment of property owners will switch away from traditional insurance and towards embedded options as customers are lured by convenience.

The global insurtech provider, which specialises in embedded insurance, says a Momentive.ai survey of 646 homeowners, landlords and renters across Australia reveals 23% of respondents would switch to embedded insurance, with 14% moving away from traditional insurers.

The findings show convenience as the primary reason for preferring embedded insurance, noting that customers who recently made a claim were 16% more willing to switch insurance provider than those who had not.

Short-term rental hosts were the biggest proponents of embedded insurance, with 99% of respondents saying they would be interested in purchasing insurance from their rental listing provider.

Cover Genius says the appeal of embedded insurance comes from providing “an on-demand offering that streamlines host protection,” addressing underinsurance issues and removing the risks of customers overpaying for insurance by preventing overlap between cover provided by the listing site and property owners’ separate policies.

It notes that despite the strong desire for incorporated insurance options, 68% of those surveyed said they were not offered insurance during their application process.

“Customers are demanding a better end-to-end experience when renting and buying properties,” Cover Genius co-founder and CEO Angus McDonald said.

“By leveraging embedded insurance, digital companies can streamline the historically fragmented property insurance processes with digitised protection for the entire home lifecycle, from building to owning to renting.”

Mr McDonald says the findings deliver a “massive opportunity” for digital companies “to deliver a tech-led solution their customers are asking for”.