a shift towards integrated insurance to the detriment of traditional insurers
Nearly 100% of short-term rental hosts, a growing segment of landlords, want their rental listing provider, such as Booking.com, Airbnb, Vrbo, Expedia, etc. offers homeowners insurance. New research shows that due to convenience, customers around the world are considering switching to in-vehicle sources of insurance in the future (+36%) at the expense of traditional insurers (-14%). However, despite their desire to offer built-in protection offers, 67% of homeowners, landlords and renters were not offered insurance during their application process.
That’s according to new consumer-focused research, conducted by Momentive ai and commissioned by cover geniuswhich surveyed more than 15,000 landlords, landlords and renters worldwide to examine interest in a new insurance distribution model where real estate agents, banks, lenders, mortgage brokers, listing providers short-term rental companies and other proptechs offer insurance during the application process to buy or rent their property.
The study also found that short-term rental hosts want around-the-clock homeowner’s insurance from their listing provider, not just the overlapping coverage they currently provide during the rental period. A full 98% of respondents would be more interested in purchasing landlord insurance from their rental listing provider, with convenience being the main motivating factor. The standard protection included with the majority of rentals on listing sites often overlaps with the host’s own policy, meaning they are paying too much for their insurance. Built-in homeowner’s insurance overcomes this problem, especially in countries where homeowner’s insurance is not mandatory and where underinsurance occurs. An on-demand offering that streamlines host protection and homeowners insurance has the potential to eliminate duplication and help hosts save money on their policy or listing fees. Data showed that 32% of hosts prefer to pay less for their short-term rental listing site, while 35% prefer to pay less for landlord or landlord insurance.
“Customers are demanding a better end-to-end experience when renting and buying properties,” said Angus McDonald, CEO and co-founder of Cover Genius. “By leveraging integrated insurance, digital businesses can streamline historically fragmented property insurance processes with digitized protection for the entire home lifecycle, from construction to ownership to This new study presents a huge opportunity for digital businesses – whether you are a short-term rental provider, bank, lender or proptech – to deliver a technology-driven solution their customers demand.
The results also revealed that property insurance claims experiences are poor, leading customers to seek protection from other sources. When asked to rate their claims experience, homeowners, renters, and landlords had an average post-loss net promoter (NPS) score of -3. Those who had recently complained were willing to switch providers at a 16% higher rate than those who had not recently complained. As an insurtech for integrated insurance, Cover Genius offers a seamless claims process with a post-loss NPS of +65‡, the highest in the industry.
This follows three groundbreaking reports which revealed that customers around the world want other types of built-in protection for their convenience, with the shift in preferences away from traditional insurers and in favor of airlines and travel agencies, banks (for whom a majority of customers prefer receiving offers based on transaction monitoring) and retailers.
Download the full global report, »The Integrated Insurance Property Reportfor more information and a breakdown of results from 16 countries, including the United States, CanadaLatin America, Argentina, Brazil, Mexicothe UK, Italy, France, Germany, Singapore, Vietnam, Australia, India, South Korea, Thailand and Indonesia.
Comments are closed.