refurbed, the fastest-growing startup for refurbished products in the DACH region is one of the best case studies demonstrating the implementation of insurance products in the “customer journey’’ at the perfect time and place for customers, leading to an increased insured customer monthly growth rate of more than four times. To ensure security and increase loyalty and quality for the end customers, refurbed looked for a digital insurance solution with different activation options that could be flawlessly integrated into their online store.
Additionally, the company has continued its linear growth, recently successfully closing a $54 million Series B round, which will ensure the company’s further geographical expansion, being active in nine different European countries.
The problem
At the beginning of the company’s operations, the coverage of refurbished devices against wreckage, water damage, and theft was not a typical product in the market. The company wanted to be the very first marketplace to offer such coverage to its end customers and provide a cutting-edge solution that would add value to their operations.
Implementing embedded insurance as an innovative solution
To deliver the solution, bsurance partnered up with Allianz Partners, taking the existing mobile device insurance and fully embedding it in the refurbed marketplace.
By using the bsurance API, refurbed weaved the device insurance at the very end of the refurbed customer’s journey, right after the device’s purchase was completed. As a result, after a purchase, customers received a tailored email with a coverage offering. It is worth noting that the insurance offering was pre-filled and comfortable for users, requiring only a few clicks to unlock the different insurance opportunities.
Embedding insurance at check-out
To add more value to the sales process and user experience, refurbed made changes to the device insurance offering in the first quarter of 2021, embedding insurance at the check-out stage and allowing the opportunity for the users to insure their products by simply adding insurance into the basket. Moreover, the customers have the option to make a one-time or monthly payment for the annual insurance coverage.
The recently implemented solutions have enabled the company to leverage embedded insurance technology, enabling flexibility, security, and solutions diversity for its end-customers when purchasing insurance. Furthermore, the bsurance´s API was developed as fully GDPR compliant, allowing documents to be visible and reviewed one click away.
Decline in cancellations & quadruple monthly growth rate
The refurbed investment in embedding insurance into their sale process has paid off. After using the bsurance solution for six months, the company’s average monthly growth rate on insured customers has increased from 6% to 26.1%, which means that the growth rate has quadrupled. That is a powerful example of fruitful results that embedded insurance can bring for e-commerce providers – integrating insurance at the POS, maximizing offering, and accelerating business growth.
Moreover, after the solution implementation, a decline in cancellations (as a percentage of premiums sold) has been noticed, demonstrating the impact of embedded insurance on customer loyalty and peace of mind, having security ensured in the customers’ journey while purchasing electrical appliances.
From the psychological perspective, conveniently embedding insurance into the customer journey has led to increased customer conversion rate and user confidence in purchasing insurance directly from the marketplace. These insights are just topped with the recent EY research data, revealing the consumer’s increased interest (by 21% since the start of the pandemic) in convenient digital purchasing options and transparency in purchasing insurance.
Lastly, not only insurance cancellations decreased by embedding insurance into the purchase process, but also the bsurance team has observed that the trend – “if cancellation decreases retention increases” applies for the refurbed case study.
Concluding remarks
Thanks to bsurance’s embedded insurance solution, refurbed, the largest marketplace of refurbished products in the DACH region has quadrupled the monthly growth rate on insured customers, positively impacting the customer loyalty, trust, and retention rate. The brand’s partnership with bsurance allowed this great leap in enabling embedded insurance opportunities in the customer journey, demonstrating the positive impact of embedded insurance on business results for e-commerce providers.
As mentioned above, the company has been taking various steps behind the scenes to expand its business, and bsurance´s solution´s impact and insights have been a massive step toward the growth of refurbed.
