Embedded insurance refers to the integration of insurance products or services with other non-insurance products or services. The idea is to make insurance more accessible and affordable by offering it in conjunction with other popular products or services.
The recent introduction of embedded health insurance with Airtel Data Plan is an example of this trend.
Airtel Nigeria has partnered with AXA Mansard to offer a new embedded health insurance product that provides basic health insurance coverage. The bundle plan provides three health care services: Telemedicine, Pharmacy Services and hospitalization reimbursement
With the *141*44# short code, Airtel customers across Nigeria can subscribe to any of the three health bundles (Data bundles + health insurance) on offer:
- N700 for 1GB of data and 7 days of medical insurance;
- N1,700 for 2GB of data and 30 days of medical insurance; and
- N3,500 for 10GB and 30 days of medical insurance.
This new product is a replica of the same embedded health insurance product introduced by Bharti Airtel and Bharti AXA General Insurance in India in 2019. The product provides Airtel customers with health insurance coverage of up to INR 4 lakh (about $5,500) as a part of their Airtel data plan. The coverage includes hospitalization, pre-hospitalization, and post-hospitalization expenses, among others.
This move by Airtel in Nigeria is a strategic one that benefits both the company and its customers. For Airtel, offering embedded health insurance is a way to differentiate its data plan offerings from those of its competitors. It also provides an additional revenue stream for the company, as it earns a commission from Airtel Nigeria for each policy sold.
For customers, the embedded insurance product provides an affordable and convenient way to access health insurance, as they do not have to go through the hassle of buying a separate policy or dealing with a third-party insurance provider.
Embedded insurance products like this have the potential to revolutionize the insurance industry by making it more accessible and affordable for consumers. By integrating insurance products with other popular products or services, companies can leverage their existing customer base to expand their insurance offerings. This could be particularly beneficial in emerging markets, where insurance penetration rates are often low.
However, there are some potential downsides to embedded insurance products. For example, customers may not fully understand the terms and conditions of the insurance coverage, as it is not their primary reason for purchasing the product. Additionally, there is a risk that customers may view the insurance coverage as an add-on rather than a critical part of the product or service they are purchasing.
In conclusion, the introduction of embedded health insurance with Airtel Data Plan is an exciting development in the insurance industry. It has the potential to make health insurance more accessible and affordable for Airtel customers in Nigeria. However, there are also potential downsides to embedded insurance products, and it will be important to carefully evaluate the risks and benefits of such products as they become more prevalent in the Nigerian market.
