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What Is Insurance White-Labeling?

By The Boost Team on Jul 11, 2022
7 min read
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There are multiple ways to approach and sell embedded insurance, but the most effective approach is white-labeling. Not only is white label insurance the fastest and most cost-effective option, but it also keeps the insurance under your brand, expands your product offerings (and potential customer pool), and creates more points of sale with your customers which leads to higher retention rates.

Defining White-Label Insurance

A white-label insurance product is one that’s been developed by one company, then rebranded and sold by other companies. White-label insurance can be used by insurance companies and insurtechs whose primary business is to cross-sell a variety of insurance products, or it can be used by non-insurance companies as an additional stream of income.

An easy way to understand the concept of white-labeling is to consider white-labeled products that exist outside of the insurance world. For example, consider the Costco brand: Kirkland Signature. When you see food, paper towels, denim jeans, and various other items sold under the Kirkland Signature logo, you probably don’t think about the fact that they were most likely not produced by Costco itself. In most cases, they were manufactured in various factories by various companies, white-labeled, and then sold under the Kirkland Signature brand. The same can be done with insurance.

white-label, embedded insurance product is one that is completely integrated not only into your website so that your customers don’t have to leave your website in order to make a purchase, but it’s also integrated into your brand. Customers will have no indication that the product was not created by your company. 

Benefits of White-Labeling Insurance vs. DIY

When it comes to the question of “white-label or build from scratch?” there are several benefits to white-labeling insurance products– namely, it will save you time, labor, and money. 

In order to build an insurance product yourself, you would need to get licensed as an insurance agency, fulfill the requirements to become a Managing General Agency (MGA), create your insurance forms, rates, and underwriting guidelines, get a carrier to provide capital backing for your product, be appointed as a producer/agent broker by that insurance carrier, build technology to sell your product through your website, and finally create or outsource claims administration capability. And that is telling a long story short.

All in all, you would be looking at a multi-year timeline. Building an insurance product from scratch would not only be lengthy and complex, but it would also be a considerable financial investment with long-term, ongoing expenses and maintenance required.

Instead of hiring an internal engineering team, educating yourself on each state’s insurance regulations, requirements, and laws, and navigating the complicated process in-house, you can outsource that labor to a company that has already done that work for you. Without losing any of the benefits of adding an insurance product to your business, you can save yourself time, money, and effort. 

What Are the Other Options?

Besides building from scratch, you could potentially work with an affinity insurance partner, where you would redirect your customers to the insurance provider’s website to buy the insurance product from them, but there are several downsides to that kind of partnership. First, you wouldn’t have the benefit of a trusted customer experience with your brand. In affinity partnerships, after your customers click through to your provider’s website, you lose ownership over customer relationships or brand management. Additionally, affinity partnerships primarily generate leads for the insurance provider, not for you. 

White-labeling insurance can benefit both non-insurance companies who want to start offering embedded insurance, and insurtechs looking to add or expand their offerings. We’ll look at both scenarios below.

Why Does White-Labeled Embedded Insurance Work for Non-Insurance Companies?

For a non-insurance company, the benefits of adding white-label insurance to your offerings include increased revenue, greater customer engagement and retention, and competitor differentiation.

Increased Revenue

White-labeled, embedded insurance is a big opportunity for your non-insurance business to build new streams of recurring revenue. In 2021 alone, the insurance market amassed over $700B in gross written premium, and that number is only projected to grow. 60% of consumers are looking to buy insurance from new entrants, which means that there’s never been a better time for companies outside the traditional insurance industry to enter the market. If your business could tap into even just a fraction of the insurance market value, it could lead to significant revenue. 

Additionally, insurance premiums are recurring revenue, which creates lifetime customers, rather than one-time purchasers. When your customers purchase insurance through your website, they buy the policy directly from you, you collect the premium payments, and your business profits from the recurring income. And because the transaction will take place on your site or app, you will have full ownership over your customer experience and data, which helps you to better sell to them in the future.

Customer Engagement and Retention

Following that train of thought is customer retention and experience. Insurance is a very “sticky” product with an average 84% customer retention rate. An important point to remember with embedded, white-label insurance is that you are not selling to new customers. You would be selling to the same audience with whom you’ve already invested effort and acquisition costs. White-label insurance gives you the opportunity to connect with your customers on a new level. 

Let’s say that you own a company that sells goods or services to pet owners, and you are looking for a way to deepen your customer relationships while increasing revenue. You can leverage your existing customer relationships to sell them pet insurance.

As a non-insurance company, you would be able to white-label and embed the product directly into your website. Without ever having to leave your website, your customers can add insurance to their existing purchases. Because you have already done the hard work of building a positive, trusting relationship with your customers, the addition of this new, beneficial protection that they know they can trust can only increase their brand loyalty.

Competitor Differentiation

White-labeling an insurance product is a great way to set your company apart from competitors within your industry and also from competitors in the insurance market. 

As a different example, let’s say that you own a company that caters to pet owners and you take the initiative to sell pet insurance alongside your other products. Because pet insurance is still relatively new in the US, some of your customers may not even be aware that it’s an option. By offering it to them, you demonstrate that your company is forward-thinking and ahead of the competition. You can anticipate your customers’ needs and solve legitimate problems that they face as pet owners. 

By selling insurance, you will also be entering a new market, which may sound intimidating if you are not familiar with the insurance industry. However, the good news is that you have an edge in that market too. Customers are far more likely to purchase from a company that they are already familiar with and trust than one that they’ve never worked with before. Because you would be selling to customers with whom you already have a relationship, you would have an advantage over traditional insurance providers marketing similar products. 

What Are the Pros of White-Labeling for Insurtechs?

For an insurtech, the benefits of white-labeling insurance include access to insurance capacity, a much faster GTM rate, and the ability to focus on serving your customer instead of reinventing the wheel.

Access to Capacity

If you choose to white-label, you would have access to your partner’s insurance capacity. This is the maximum amount of value that an insurance program can insure, determined by the amount of capital available to cover its losses.

Capacity can be difficult for many insurtechs to come by. The most practical option is to partner with an insurer or reinsurer who can provide what they need, but securing those partnerships can be challenging. This is especially true for insurtechs without established connections to insurance carriers. Getting in front of the right people at a carrier company and convincing them to provide the needed capacity can be a years-long process (which often ends in failure).

Faster Go-to-Market Time

As previously stated, building an insurance product from scratch is a long, complicated process. Partnering with a white-label insurance partner cuts all of that work and extra cost down so that you can get to market faster. 

You could also partner with an insurance-as-a-service provider who would provide everything you would need to start offering insurance to their customers from technology to insurance capacity, operational infrastructure, regulatory approvals, and the embedded product itself. Insurance-as-a-service partners make the process even more streamlined and worthwhile. For example, if you were to work with Boost, an insurance-as-a-service company, instead of wading through a multi-year process to build a product yourself, you would experience a full-service partnership and get to market in as little as one month.

Customer Engagement and Retention

Customers want convenience. Instead of getting every kind of insurance from a different provider, you can become a one-stop shop for their insurance needs. 

An important aspect of customer engagement and retention for insurtechs is the ability to cross-sell. You need a variety of products that complement each other to encourage customers to buy more than one policy. If you work with a white-label insurance provider like Boost, you would have access to a wide variety of already-built products to choose from, so you can choose products that align with your business goals. You can simply select products that would cross-sell well with your existing lineup.  

The more products, the more points of sale, and the stickier your customers. By engaging with them through multiple policies, your retention will naturally increase.  

You don’t need to reinvent the wheel in order to sell a great insurance product that will appeal to your customers. In fact, it is much faster and more cost-effective not to. Whether you are a non-insurance business or an insurtech looking to expand its product lineup, white-labeling allows you to outsource the difficult, lengthy aspects of building an insurance product so you can focus on what really matters: growing your revenue, increasing engagement and retention, and setting yourself apart.

If you want to learn more about growing your revenue with white-labeled insurance through Boost, contact us, or dive into building your insurance program with Boost’s Launchpad.

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The Boost Policy Admin System: How We’re Different
Sep 16, 2022
As an insurance infrastructure-as-a-service partner, Boost provides more than just white-label insurance products: we also provide the technical infrastructure necessary to digitally offer those products on your website.  The most important part of any insurance tech stack is the policy administration system (PAS), which is the system of record for every transaction related to an insurance policy. As part of Boost’s API platform, we deliver a state-of-the-art policy admin system (PAS) to support our products at every stage of their policies’ lifecycle. What makes Boost’s policy admin system so special? Here are seven factors that set us apart. One of the most complex parts of building a PAS is accounting for the differences between state insurance regulations. Insurance products must be approved by each individual state that you want to sell in, and each state has its own laws, regulations, and requirements regarding the sale of insurance. Depending on the state, you may need to account for changes in areas like: These parameters are built into Boost’s policy admin system. When a transaction takes place, our PAS will automatically apply the necessary rules for the customer’s specific state. This ensures that every transaction is compliant with relevant state regulations. State regulations change, however, and today’s "fully-compliant" is tomorrow’s "out-of-date." To make sure Boost's policy administration system keeps up, we have a team of in-house insurance law experts who carefully follow insurance regulatory developments in all fifty states, and provide guidance to the Boost technical team to ensure our PAS stays current. With Boost, you never have to worry about staying on top of state regulatory changes - we do it for you. A seamless transaction experience is important for converting customers, but a seamless claims experience is important for keeping them. When your customers suffer a covered loss, a fast, easy claims process helps deepen their relationship and engagement with your brand. With Boost’s PAS, the potentially complex claims management process is made simple. Rather than having to manually contact carriers and manage the process yourself, our first notice of loss (FNOL) API acts as a unified point of entry to all the services you need. Our FNOL API is connected to all appropriate claims administrators. When a customer submits a claim for their policy, we automatically route that claim to the right administrator, along with all available supporting documentation. The administrator gets everything they need to start working on the claim, in real-time. This helps reduce the overall time needed to process a claim, which then means faster resolution for your customers.  User experience is a vital component of any digital service, but we’re equally concerned with developer experience. Our insurance API was built from the ground up to leverage modern RESTful patterns, and to be easy for developers to build to and implement.  The API is also designed for consistency, so that once developers understand a given resource, they understand how to use it across our platform. From issuing a policy to executing a renewal, midterm endorsement, or cancellation, once your engineers understand how to do it once, they can do it anywhere.  An essential piece of a developer-friendly API is good documentation, and so we make sure that our documentation is exceptional. Boost’s API documentation is intuitively organized, personalized to your business, and updated in real-time - so you’ll never need to worry about working with outdated docs. You’ll also get permanent access to a dedicated testing environment, so you can build out integrations and test new platform features with no surprises when you go live.  All this makes it easier than ever to get your developers up to speed, which means you can get to market or make updates to your integration that much faster. One reason why building a PAS is a complex and expensive process is that the system must be separately configured for each insurance product it supports, and each additional product adds to the cost and timeline. This can be a roadblock for insurtechs looking to expand their offerings with new lines of business. At Boost, our partners can choose from seven white-label insurance products (with more to come). Our PAS is fully configured to support each product at their launch, so our partner can easily add new LOBs by simply updating their existing API connections to include additional Boost products. Rather than needing to work with multiple insurance providers to get the breadth of products that you want to sell, and having to integrate multiple other systems and products into a PAS, you can integrate one time with Boost and still benefit from multiple lines. Growing your business by expanding your LOBs has never been simpler. It may feel like the entire world has gone all-digital, but a surprising amount of insurance isn’t quite there yet. Many traditional carriers provide partners with the ability to rate and quote customers digitally…but then switch to manual processes to complete the transaction. Critical insurance functions like issuing policies, creating endorsements, filing claims, or processing renewals regularly require you to contact the carrier, then wait for a response. Boost’s policy admin system supports an entirely digital workflow end–to-end, allowing you to offer your customers a truly seamless digital insurance experience. From underwriting to policy modification to renewal, any function necessary for an insurance transaction can be performed through the PAS, with an instant automated response. There’s no need for either you or your customers to ever pick up the phone. The Boost PAS is built on an enterprise-grade platform, leveraging modern industry tools like Kubernetes and Terraform. With 99.99%+ uptime, multi-region support, and the ability to handle multiple releases per day, you can count on the Boost insurance platform to be available when you need it. We understand that stability is vital, and that’s why we’re also careful to ensure that the Boost insurance platform is versioned so that it stays backwards-compatible. If you build an integration based on a current feature set, and we make changes in a future release, your integration won’t break. You’ll be able to keep using it the way you always have - which translates to lower development costs over time since you aren’t forced to redo your work every time we make a big update. Modern customers expect their digital experiences to be speedy, and Boost delivers. The response time of our API is up to 10x faster than other insurance carriers. That means when we get a request through the API, we can process data and get a response back to the user with unmatched speed. No waiting around for a loading bar to tick through - the customer gets what they need immediately, and gets on with their transaction.  Working with Boost helps you launch new or expanded insurance offerings at a fraction of the time and cost required to DIY, and a significant part of that savings is driven by our PAS. We built it from the ground up to deliver a fast, reliable, developer-friendly platform, so you can get what you need, when you need it, and get back to growing your business. To learn more about insurance infrastructure-as-a-service through Boost, contact us, or dive into building your insurance program with Boost Launchpad
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Learn how APIs work, and the attributes of a high-quality API
What Makes a Good API?
Jan 13, 2023
APIs have become ubiquitous in modern technology - and in modern tech marketing. If you’ve ever looked into buying a software service or platform in the last ten years, the odds are that a good API was listed as one of the selling points. But what exactly makes an API “good?” Before we dive into that question, let’s take a minute to recap what APIs are, and why they’ve become so central to business and technology. Application Programming Interfaces (APIs) are the mechanisms that allow computer software to communicate with each other. APIs ensure that when one software system makes a request, another system can understand the request and respond correctly. When discussing the relationship between two software systems, the application sending the request for action is called the client, and the application sending the response is called the server For example, your bank’s software system houses all of your banking data–that software system is the server. The banking app on your phone is the client. When you initiate actions in your banking app, like making transactions, checking your account balance, or even chatting with a representative, the app communicates with the bank’s software via its API and tells it which action to perform. The server provides an API for the client to use to perform actions. Let’s say that you want to make a transfer of funds from your checking account to your savings account. You open your banking app and navigate to the transfer tab where you are asked which account you are transferring from, which account you are transferring to, the amount you want to transfer, and any additional notes before you can submit the request. Within seconds of submitting your request, the number on your checking account decreases and the number on your savings account increases, and the physical amount of money you can withdraw from the bank for both accounts has changed.  For this to happen and money to actually be moved, the app needs a way to tell the bank’s system what to do. That is where the API comes in. The APIs are the rules and protocols that are coded into both systems as a set of predetermined requests and responses.  When you enter how much money you want to move and where you want to move it to, the client communicates with the API on the server. When the server receives that request, it reads the information and executes a predetermined set of actions to move exactly the amount of money that you requested into the correct account.   From a technical standpoint, APIs consist of two main components: an address and a body. The address, also known as an endpoint, tells the data where it's supposed to go (in our example, the bank’s system). The body is the data that will be delivered to that address.  APIs allow developers to automate functions and create a very clear, easy-to-understand relationship between what the user needs to do and what the computer systems will do in response to their requests.  Without APIs, the modern conveniences of apps, digital transactions, and the like couldn't exist. Everything would require human, manual interference. Instead of quickly logging into an app on your phone to make a transfer of funds, you would have to physically go into your bank or talk to a teller over the phone, and your request would take much longer to process.  But because of the code and predetermined actions built into digital systems through APIs, users can interact with services much faster. You can transfer your money in seconds, and the bank can gather your information, automate manual processes, and make their work more efficient. Now that we’ve established what an API is and why they are important, let’s talk about what makes a good API. While all APIs follow the same principle of allowing systems to communicate, not all APIs function equally well. The quality at which an API is developed impacts how effective any system will be at actually doing what the user is asking for.   So what makes a good, well-constructed API? Here are 5 aspects of a good API. First and foremost, APIs should be simple. This means having clear addresses, endpoints, and easy-to-understand request body structures. In our banking example, the bank’s software and the app’s software are presumably owned and operated by the same company–the bank. Oftentimes, however, the client and the server belong to different companies. Developers at both companies will need to build their systems to be able to understand the API and react accordingly. A simple, straightforward API structure makes it easier to correctly implement.   Let's take a look at an insurance API example. Say that you own a pet store and you have partnered with an insurance carrier to offer embedded pet insurance to your customers. In order for your customers to purchase insurance from you, they have to enter their information in a form on your website. Then the insurance company receives that information, makes an underwriting decision, and issues the policy.  In order for the insurance company to receive your customers’ information and take action on it, your front-end systems need to communicate with your insurance partner’s system. The set of requests and responses between these separate systems should be simple and clear. The simpler the API, the faster and more seamless the integration between these two systems will be, and the fewer opportunities for mistakes.  A good API should be able to execute all (or at least most) of the functions a user would need. Going back to our bank example, an app that allowed the user to check their balance but not to transfer funds wouldn’t be very useful to the customer. To be effective, the bank’s API needs to be able to handle most of the things a customer might want to use their bank app for.  For more complex functions, it’s important that an API be able to collect and process all of the information needed to return a response. For our pet insurance example, let’s say that in order to decide to issue a policy, the insurance company needs ten pieces of information from the customer.  If the API could only handle five of those pieces of information, the rest would need to be submitted separately (likely over email or a phone call with an insurance agent). It would be an inconvenient experience for both the customer and the insurance company, and increase the likelihood of manual errors. A good insurance API would be able to collect and process all information needed to issue a policy, right from the app or website. Errors are inevitable with any piece of software. What sets a good API apart from a bad one is how it handles errors when they arise. Good error handling can make the difference between getting back on track quickly, or getting bogged down in bug reports. Broadly speaking, there are two kinds of software errors: 400 errors and 500 errors. The difference between the two is how much information they can give about what’s gone wrong. 400-type errors are specific errors with an identified problem. One of the most familiar is a “404 not found” error, which occurs on the web when a user tries to navigate to a web page that doesn’t exist. If you’ve ever mistyped a URL or clicked on an old link to an inactive page, you’ve seen a 404 error. Because 400-type errors give a specific reason for why the request failed, they also give direction on how to go about fixing the problem. 500-type errors, on the other hand, are much less clear. 500 errors indicate general server failures, crashes, or bugs. These tend to be more frustrating for users and developers alike, since they don’t contain much to go on for how to fix it. A good API should be able to produce mostly 400-type errors that identify the problem so that it can be easily tracked and fixed. When an API produces a lot of unidentifiable 500 errors, it indicates a poor-quality API. While not technically part of the API itself, good documentation is essential to a successful API. As developers integrate systems or build the API rules into an app, documentation has a direct impact on how quickly they can work, and how well they can avoid errors.  Good documentation should specifically describe each of the endpoints, what the requests should contain, and what the responses will contain. In many applications, an API will touch various parts of an overall system. This is especially true for more complex operations like our pet insurance example. On the user’s side, applying for insurance might seem like a straightforward software operation - they fill out the form, and the software sends it. On the insurance company’s side, however, it’s much more complex.  When the user submits their application, numerous parts of the insurance company’s system will be involved with the process. One part of the system will document the personal information they provided in the application. Another part will use that information to make calculations around premium costs, and still another part will generate the policy itself. In order to make sure this all happens seamlessly, developers need access to comprehensive, up-to-date documentation for how all these components interact and are executed via the API.  Finally, a key benefit of APIs in general is speed. Rather than trudging through manual processes, APIs are meant to automate functions that would take much longer if human interactions were required. A good API should allow information to be passed between servers quickly and efficiently. Going back to our earlier examples, no one wants to sit and wait to see if their bank transfer request or their insurance application was successfully received. For the best user experience, APIs should process requests in less than a second. If an API is slow to respond, it may indicate inefficient architecture, or that the servers are housed on insufficiently powerful hardware. APIs allow businesses to function in a modern, technologically savvy way. By continuously improving the communication between client and server systems, consumers have access to a wider variety of digital transactions and services than ever before. If you want to learn more about Boost’s API and how we can help your business stand out through insurance-as-a-service, contact us, or dive into building your insurance program with Boost Launchpad.
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What is Parental Leave Insurance?
May 10, 2022
If you’ve never heard of parental leave insurance, you’re not alone. Parental leave insurance is a relatively new product on the market but an increasingly necessary one. Let’s explore a few of the reasons why parental leave is important and what solutions insurance can offer.  Becoming a new parent is a major life event that can be happy and exciting, but it can also present challenges in the workplace for both employees and employers. Over 60 million Americans are parents, but the U.S. is one of the few countries worldwide with no universal parental leave requirements. As such, nearly 30% of working women quit their jobs after giving birth. In states that do require paid parental leave, however, the rate of mothers leaving the workforce dropped 20-50%. It’s no surprise that according to recent studies, “When deciding to accept a job offer, 66% of employees said the employer’s paid parental leave policy is important.”  Parental leave is a significant DEI issue for retaining female employees who become mothers. Social and cultural shifts over the past few decades have made this issue more important than ever. “With the increase in female employment rates, coupled with the decline of the male breadwinner family model…entitlements to job-protected leave after childbirth has become important policy measures to support parents” (EIGE).  Employees ranked parental leave as the third most desired benefit, outranked only by flexible work and paid insurance premiums, but many small and medium enterprises (SMEs) don’t offer it. In fact, only 23% of private employers in the U.S. offer paid parental leave in their benefits package, which puts SMEs at high risk of losing their employees when parenthood arises. Though paid parental leave is a highly requested benefit, it can be expensive for businesses to cover. For SMEs, this often prohibits them from offering any benefit at all. Adding to the difficulty, paid parental leave is also an unknown liability on the balance sheet. Employers can't predict if or when their employees will use it, which translates to a potentially large expense that they can’t accurately plan and budget for.  The Facebooks and Googles of the world can afford to be generous and pay that out of pocket, but many smaller companies can't. This puts those smaller companies at a disadvantage for both acquiring and retaining talent. In the absence of a national parental leave solution, it’s up to the private sector to find ways to support new parents in the workforce. Parental leave insurance is a business insurance innovation designed to make parental leave affordable for small and medium enterprises. This is how it works: an insurance provider offers the parental leave insurance product, sometimes as part of a larger business insurance suite. The SME chooses a package that covers the kind of leave they want to offer their employees. This includes factors like what percentage of the employee’s salary will be covered and the length of leave the SME will offer.  The SME then buys the policy, and pays the insurance provider a recurring premium based on their selected benefits and employee demographics. When a covered employee takes parental leave, the small or medium enterprise will file a claim through their insurance provider’s claims process. The SME will then be reimbursed for the cost of paying the employee during the covered leave period, as spelled out in the parental leave insurance policy.  It’s a solution for providing this benefit that mitigates large, unexpected leave costs. Instead, the employer pays a regular, planned amount in premiums, and can rest easy knowing their insurance policy will protect them. No more unknown liabilities on their balance sheet. Meanwhile, the SME can reap the benefits of attracting and retaining top talent by offering parental leave. With over 30 million small and medium enterprises in the U.S., there is a significant opportunity for insurtechs and embedded insurance providers to help businesses affordably provide this valuable benefit to their employees. Offering a first-of-its-kind, highly desirable insurance product is a forward-thinking way to set yourself and your clients apart in the market.  By offering parental leave insurance, you can help your clients attract and retain top talent. Employees are far more likely to work for a company where they feel supported, and this product is an effective way to establish your brand as focused on employees’ well-being while helping your clients to do the same. More than ever, employees want competitive, comprehensive, and inclusive insurance packages, and offering parental leave is an opportunity to positively impact employee experience and perception of their employer.  Additionally, adding parental leave insurance to your product lineup creates new cross-sell opportunities to boost revenue and LTV with your existing customers, and deepens their business relationship with you.  Parental leave insurance provides an opportunity to stand out from the competition. This is a first-of-its-kind product that is not being offered by many insurtechs, but benefits employers and employees alike. You have the opportunity to get ahead of the curve with this innovative white label insurance product.  If you want to learn more about growing your customer LTV with Boost’s Parental Leave Insurance, contact us.
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