The recent bsurance article provided an overview of embedded claims, the implementation process, and a few compelling reasons why embedded claims are an invisible yet crucial part of the customer journey.

Today we are happy to share an interview with bsurance´s Head of Claims, Elisabeth Mistelbauer, covering answers to the frequently asked questions on embedded claims, sharing a glimpse into the near embedded insurance future, and sharing interesting facts on bsurance solutions and benefits for businesses, carriers and customers.

Embedded claims

Could you define embedded claims in one sentence?

Embedded claims are the fertilizer of customer retention and they put the embedded insurance coverage to the test since they are seen as the fulfillment of the contract.

What problem do embedded claims solve?

The problem of changing the channel. Today customers purchase insurance through a digital channel, and they expect to claim their damage in the same way. Embedded claims should be accessible on the same level, media, and technology as embedded policies, so consumers would only need to log in to the same account and contact a single point of service without going through additional steps.

Embedded claims process

What does a successful embedded claims process look like?

One word, it should be quick. From the first notification of loss (the first contact with the customer), until the moment of the clients’ payment authorization – we aim for 24 hours, even though we can do the process within 10 to 15 hours if every document is in place.

Sometimes you have to reach out to the insurance company to see if they reject or accept certain claims. Would this prolong the time?

Generally speaking, yes. To shorten the time from claims notification to payment, the insurance company should be on the same technological level as the business client and bsurance. That said, the insurance product should be made simple and understandable for all parties involved.

Advantages and added value

Why are embedded claims essential to the success of the embedded insurance process? Is it important to gain customer trust?

If the claims process is simple and clear to all parties involved, the end customer will be able to seamlessly claim their damage, highlighting the added value of embedded insurance. Claims management is the absolute moment of truth for the whole insurance process and the entire insurance product. Having a transparent and understandable process where the customer knows what is happening is crucial to gain trust and retain and generate new customers.

What are some of the new advantages that come with integrated claims?

Embedded insurance makes the customer feel safer. It makes the product more valuable when the insurance is embedded, and it meets the customers’ need to decide quickly for or against something. If you give this possibility and variations to the client, it adds more value to your product.

What are the biggest disadvantages for businesses that don’t use or don’t consider implementing embedded insurance?

In summary, the slowdown of the purchase process and customer dissatisfaction. Analog, external insurance blocks fast data transfers, resulting in longer claims processes, lack of transparency and possible customer dissatisfaction.

bsurance products

What’s the most crucial part of the process that bsurance is building? Why?

The most crucial part is developing a clear and concise cover to be understandable for the client. I see a lot of words and definitions in terms and conditions that can be easily misunderstood. The client is on their own when reading, understanding, and deciding during the sales journey, leading to a lack of motivation to purchase a policy.

What do you think is the differentiating factor for bsurance offerings?  

We are not only IT as a service; we have experience in product development for insurance companies and claims handling. We know the pitfalls and the solutions. We aim to make the insurance system understandable by developing something that meets state of the art at the moment. With bsurance products, end-customers and businesses get a smooth, transparent, and easy-to-understand process.


Do you see any relevant changes in the embedded claims process in the coming years?

The economic and regulatory borders within Europe are merging, which means that embedded insurance and the claims journey can now efficiently function cross-border without the intervention of local third-party insurance brokers.

Do you think Artificial Intelligence will have an impact on embedded claims in the near future?  

Yes, it could speed up the process of claims management and help reduce administrative work since it could process a large number of claims simultaneously, which is always good for the end customer. In fact, artificial intelligence is already being used for so many things in the insurance industry, such as risk management, data crunching, and data mining, and I believe it will soon have a positive impact on claims management. For me, AI is a tool I will gladly use, and in my opinion, using it is a good choice for every international insurance company.

Personal questions

What have you learned since you started?  

I started with the new millennium, with the year 2000, and in this short time I witnessed many significant changes. I learned to understand risks, how a product is developed, what characterizes a good product for the client, and that you can always gain more knowledge and go more into depth. I learned that it is necessary to focus on the customer needs and give the customer access to a quick and transparent claims process where they can be informed on time.

Tell me about bsurance´s last project  

We are currently developing a coverage together with SafeDrivePod, which is a wonderful technological tool that is used to block the screen of your mobile phone while you are driving a car. This will save a lot of lives. You use SafeDrivePod, and damage costs are significantly reduced. Of course, this also means minimizing the risk of motor insurance claims.

I am also working on a furniture warranty extension. Furniture and appliances are built to last for 20 years, but sometimes they don’t last so long. E-commerce platforms that sell furniture make their products more valuable and enhance customers’ trust with such insurance. Prolonging the warranty from 3 to 5 years will make your life a little bit easier. And I like this because embedded insurance can be straightforward, makes the product more valuable, and the client knows exactly what they buy since the language is as simple as it can be.

These are two completely different projects. One is super futuristic, and the other one is really based in the here and now, one saves lives, the other minor problems. I really like the variety of our projects.

Name one lesson learned about embedded claims/insurance?  

One of the lessons learned is the importance and power of collaborations during the process. Claims mean constant communication and collaboration with the team – comprehending the facts, feedback, and discussion.

In this industry, you are not working alone; you are always in a system, together with a crowd of people interested in what you are doing and your decision. For me, that’s the best part of my work.

Elisabeth Mistelbauer
Elisabeth Mistelbauer, Head of Claims at bsurance