Employee Benefits & Embedded Insurance
Insurance sales are at a turning point. Traditional channels such as brokers, comparison sites or digital direct sales offer little growth potential. They are expensive, highly competitive, and often offer limited access to new, digitally savvy customer groups. At the same time, policyholders’ expectations are changing fundamentally: they want uncomplicated, digital solutions that are available exactly when they need them. Without detours, without searching, without hurdles.
This tension is creating new opportunities for insurers to rethink distribution. Employee benefits and embedded insurance are two models that focus on pull rather than push. They bring insurance where it is needed: into people’s daily lives, embedded in existing products, services or work contexts. As a result, they enable not only more efficient access to customers, but also greater relevance, more closing power, and more sustainable customer relationships.
The change in insurance sales
Comparison portals such as CHECK24 dominate digital insurance sales with increasing price sensitivity and decreasing brand loyalty. At the same time, Google Ads & Co. are driving customer acquisition costs to economically alarming heights. Insurers that strategically integrate themselves into digital ecosystems increase their likelihood of closing deals, strengthen customer loyalty and reduce their dependence on cost-intensive sales channels.
The key takeaway: insurance companies need to go where the customer already is. In the workplace, at the checkout, in digital services.
Employee Benefits: Placing insurance where trust already exists
Employee benefits open up a highly efficient sales channel for insurers: Insurance benefits become a valuable add-on in the context of the workplace, rather than an anonymous product in the digital competition. Whether health insurance, accident insurance or mobility insurance – the products are sold directly to the employees via the company.
They are not taken out via comparison portals or elaborate advertising campaigns, but with a low threshold via existing internal channels such as the intranet, HR platforms or digital employee portals. The special thing about this is that employees encounter these offers in a familiar environment in which a strong relationship of trust already exists.
The result is high relevance, high conversion and measurable customer retention for both the employer and the insurer. At the same time, customer acquisition costs are significantly reduced, a strategic advantage in an increasingly low-margin market.
Benefits for insurers through employee benefits
Direct access to qualified audiences
Employee benefits models allow insurers to reach new customers where trust already exists: in the protected environment of the employer. Instead of relying on broad campaigns with high wastage, the approach is targeted through existing communication channels. Efficiently, cost-effectively and without a media budget.
Higher completion rates through trust and relevance
Employees place significantly more trust in their company’s offer than in traditional advertising. The insurance is not perceived as a sales pitch, but as a relevant value-add in the workplace. This lowers the barrier to purchase and leads to significantly higher closing rates.
Longer contract terms due to emotional attachment
Policies purchased through the employer often have a higher emotional attachment and require less administration. Cancellations are less frequent and contractual relationships are more stable. This significantly increases customer lifetime value.
Efficient and scalable rollout through existing HR structures
Employee Benefits sales can be seamlessly integrated into existing HR processes and platforms. Whether through onboarding, employee portals, or internal campaigns, offers are automatically and scalable delivered to the target audience without additional sales effort. For insurers, this creates a sustainable channel for growth with minimal technical requirements.
Embedded insurance: hedging at the right moment
Embedded insurance goes one step further by integrating insurance coverage directly into the purchasing process or services of other industries. For example, in online stores, mobility services or smart home platforms. The policy is purchased right where it is needed, at the moment of the purchase decision, without media disruption and without additional effort for the customer.
The principle: insurance is no longer sold, it is bought and protection is no longer a separate product, but a seamless part of a comprehensive offering. This not only increases the take-up rate, but also significantly improves the user experience. For insurers, it means access to new markets, greater relevance in customers’ daily lives, and a scalable distribution model with minimal integration effort.
Practical example: Embedded assistance cover with a major German insurer
Protection sells when it’s offered at the right moment
A customer orders an electric bicycle from an online store. During checkout, they are offered an assistance cover package that includes roadside support, seamlessly integrated into the purchase process. In case of a flat tire or technical defect, the customer receives immediate assistance without the need to search for or compare insurance options.The result: The contract is completed exactly where and when the need arises, without media disruption or customer friction. The retailer boosts their basket value, and the insurer gains a scalable, low-effort sales channel with minimal integration work.
Benefits for insurers through embedded services
Access to new markets and customer groups
Embedded services allow insurers to integrate insurance services directly into existing digital processes and offerings from other industries. This creates new points of contact with customer groups that are difficult to reach through traditional sales channels, with high potential for additional new business.
Scalable new business with little effort
The integration is unique. The impact is continuous. Insurers benefit from predictable, automated new business with minimal sales effort and significantly lower customer acquisition costs compared to traditional channels.
Conclusion in the context of use
Insurance is offered where it is needed: at the point of use. Active sales processes are no longer required. Customers decide based on the situation, resulting in higher close rates and a better user experience.
Increasing the relevance of the brand
By integrating it into everyday processes, insurance is not perceived as an isolated product, but as a meaningful component of a comprehensive range of services. This strengthens brand presence and builds trust without the need for additional communications.
Technology as an enabler
The success of employee benefits and embedded insurance depends on technological feasibility. Only when insurance products can be seamlessly integrated into existing platforms and solutions this model can reach its full potential. This is where modern technology solutions come in: APIs, web applications, and plug-and-play integrations make integration fast and easy – without the need for lengthy, large-scale IT projects.
The technical details are also impressive: response times of less than 100 milliseconds ensure a smooth user experience, while GDPR-compliant data processing guarantees the highest security standards. White-label portals and customized customer apps can be used to present insurance products in a trusted and consistent manner with the look and feel of the sales partner. Automated processes such as policy mailing, digital claims notifications, and self-service portals also ensure efficient processes and high customer satisfaction.
Insurers working with such standardized modules are able to onboard new sales partners within a few days. In fast-moving markets such as e-commerce, mobility or smart living, this speed is a decisive competitive advantage.
Economic and Strategic Impact
Employee benefits and embedded insurance not only have an operational impact, but also offer insurers significant strategic advantages. Integration into existing value chains reduces dependence on traditional distribution channels such as brokers or comparison portals, whose margins and prices are under increasing pressure. At the same time, customer loyalty increases significantly, as insurance products are no longer seen in isolation, but as a meaningful component of a broader range of services.
Insurers are also strengthening their market position through such innovative approaches: they are differentiating themselves through their proximity to digital ecosystems, demonstrating innovation leadership, and reaching new target groups in previously uninsured contexts, often in markets with comparatively low levels of competition for insurance products.
The economic impact shows that embedded insurance is not a sideline, but a scalable growth model:
Reducing dependence on brokers and comparison portals
Digital sales partnerships, such as embedded insurance or employee benefits, offer insurers direct access to customers without the detour via commission-driven brokers or price-sensitive comparison portals. This not only reduces distribution costs, but also increases control over the customer journey.
Increasing customer loyalty through integrated services
Delivering insurance services where they are needed creates relevance in the context of use: at the checkout in a store, in a mobility app or as a benefit in the workplace. This proximity creates long-term customer relationships and significantly increases the barrier to switching.
Market differentiation through innovation leadership
Insurers that are early adopters of new distribution models are positioning themselves as digital leaders. This strengthens the brand, has a positive impact on partner relationships and creates an internal cultural impulse towards greater agility and customer focus.
Access to new markets with low competitive intensity
By integrating with platforms, industry solutions or enterprise networks, insurers can reach target groups that have been difficult to reach in the past. These markets are often less competitive, but offer high volume and differentiation potential beyond price competition.
Practical example: Embedded assistance cover at the hardware store checkout
Protection sells when it’s offered at the exact moment of need
A customer purchases a high-quality machine from a hardware store’s online shop. At checkout, they are offered an additional assistance cover package, including theft protection, maintenance service, and fast replacement in case of defects. The insurance is not promoted separately but presented as a logical extension of the product.
The result: The purchase happens intuitively and in context—without media disruption and without additional sales effort. The retailer achieves measurable revenue growth through higher basket values and stronger customer loyalty. Meanwhile, the insurer gains a profitable, scalable sales channel with predictable new business and low acquisition costs. The brand is no longer seen as just a product provider, but as an integrated service partner in the customer’s everyday life, driving conversion, customer value, and brand loyalty.
Open up new possibilities
Insurers that focus on employee benefits and embedded insurance early on will not only secure operational efficiency, but also access to the key customer interfaces of tomorrow. Success will come to those who no longer see sales as a push channel, but as an intelligent integration into relevant everyday moments.
Here are the key success factors:
– Modular, easy-to-understand products such as Letters of Protection
– Rapid technology integration
– Consulting expertise for channel partners
– Entrepreneurial sales approach with clear target audience focus
Insurance is no longer sold – it is bought. Whoever understands this and acts wins.
We help you successfully develop these new sales channels with in-depth market knowledge, scalable technology and hands-on implementation support.
Talk to our partner Dr. Armin Höll-Steier. We look forward to a non-binding consultation.
