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Ageas Federal Life builds foundations of brand-new distribution channel

2023 saw the launch of the first digital B2B2C sales channel developed by Ageas Federal Life allowing AFLI to reach new types of customers in the digital space. Thanks to a collaboration with technology platform eBaoTech, AFLI has been able to explore the fast-growing trend in Embedded Insurance.

Ageas Federal Life builds foundations of brand-new distribution channel

India provided the perfect conditions for Embedded Insurance, as a market of enormous scale, high digital adoption, open finance regulation and high growth rates. Through AFLI, Ageas established the key capabilities for the embedded business: reviewing underwriting, simplifying products, adapting pricing, implementing a flexible and agile middle office for the digital platforms’ business with eBaoTech, designing customer journeys. 

And in a short space of time the Embedded Insurance journey began, kicking off with embedding credit life coverage into the digital personal loan journey of Federal Bank. In just 1 year 500,000 lives were insured through this new channel. And products currently being offered to partners include Group Microinsurance, Group Credit Shield and Group Term Life. 

Through an API management portal, a pipeline of potential partners to scale up this new channel were then identified. Today we are live with five other partners via a fintech platform, embedding micro credit life coverage into micro-loan journeys. 

As we grow our business with these partners, with the focus on constant improvements in the customer journey, we are exploring new partners, new products, and new markets. And as a Group that thrives on sharing cross border initiatives, the skills and experience Ageas learns along the way are fully transferable, reducing the time to market. At the same time, this is also helping to support our bank partners on their own digital journeys beyond branches.

Supporting the lives of the underserved thanks to new partnerships

The customer segment for Embedded Insurance is today quite mixed. Through Federal Bank, AFLI automatically reached out to the well banked segment of society. But thanks to a collaboration with Bima Plan, Unity Small Finance Bank and InsureTech player Zopper, AFLI is able to access the underbanked segment in difficult to reach rural areas of the country, who now have access to credit and insurance through these FinTech players.

Next steps in the Embedded Insurance journey

AFLI now plans to integrate insurance in the credit card and savings account customer journeys of Federal Bank. At the same time, it will continue to expand its partnerships with Fintech players in the market and seek to onboard payment platforms and other small finance and payment banks.