Affinity insurance is a kind of optional coverage that is offered to protect a product or service against various risks, such as breakage, loss, theft, cancellation, etc. Are you wondering what’s the point of affinity insurance? What are the advantages of affinity insurance? Would you like to know if you can offer affinity insurance to your customers? Then look no further! Verspieren is an affinity insurance broker, and we’re here to tell you all about it.
Affinity insurance is supplemental insurance that companies offer their customers and that is taken out at the time of purchase of a consumer good or a specific event. This optional coverage can be taken out by the end customer or covered in full by a company that wants to offer it as a free gift to its customers.
There are many real-world examples of this insurance:
Affinity insurance provides coverage to customers that is specific to the product or service they are buying and that is not included in their traditional insurance coverage (homeowners insurance, car insurance, manufacturer warranty, etc.). Affinity coverage can be adjusted to the level of protection that you want to offer for each product.
Another benefit to the customer is the simplified contracting process. This insurance is usually taken out at the time of purchase, either online or in-store, eliminating the need to do any research to find available coverage.
Lastly, the Hamon Law in France allows insured parties to terminate the contract at any time after the first 12 months.
Affinity insurance is becoming more and more popular with consumers. According to a survey conducted by Sapio Research for the Tuum platform in April 2022, 51% of respondents said they would like to be able to take out affinity insurance on a cell phone or a vacation, for example. In addition, 55% of survey participants think embedded insurance is “not bad” or even “very convenient.”
As a matter of fact, the affinity insurance market has grown steadily over the last decade. Its market value in France alone was estimated at €3.7 billion in 2019.
Offering your customers affinity insurance policies can boost your revenue, make you stand out from your competition and retain your customers.
Affinity insurance allows businesses to increase the gross margin they earn on the sale of their products. It is also an appealing way to stand out from the competition by offering simple coverage (usually purchased at the same time as the product) at an attractive price. And finally, affinity insurance helps retain customers.
