Secure Your Card Debts Seamlessly Embedded Qorus Innovation in Insurance Awards 2024 - Winner

Embedded insurance has significantly expanded and improved alternative sales channels due to various factors: the necessity for companies in diverse sectors to enhance income through insurance offerings, the streamlined integration of embedded insurance into the customer experience facilitated by digitization, and the evolving demands of customers over time.

The peak of digital banking following the pandemic has necessitated access to other financial needs revolving around banking through digital channels at the moment of truth. However, compared to the level of digital banking achieved in Turkey, the penetration of digital bancassurance, apart from credit-linked life products, remains relatively low. In this regard, it is crucial to implement trial-and-error actions in embedded insurance products for our bancassurance partnership with Akbank.

Akbank is one of the largest banks in Turkey and the exclusive bancassurance partner of Aksigorta. Akbank aims to target over 5 million digital active customers out of a total of 13 million digital customers by 2025. One of their major strategies is to excel in analytics and digital excellence to craft advanced features. Moreover, 70% of credit cards are sold through digital channels (Akbank mobile & contact center), and active digital customers log into the Akbank Mobile application more than once a day, enabling cross-selling opportunities.

On the other hand, Turkey's growing, young, and dynamic population forms a robust labor pool and is a continuous driver of the domestic market. Nearly 45% of the population is aged under 29. The dynamic structure and sectoral diversity of the economy require adaptability and resilience in a volatile environment. In such an inflationary environment, credit cards in Turkey have become more of a borrowing tool than a means of payment. Hence, credit card applications increased by 130% in 2023 compared to the previous year, with nearly 18 billion euros in payments made for credit cards in 2023. Therefore, the Credit Card Unemployment product of Aksigorta fits best here to cover the risks of mass society and complies with a sustainability approach by providing a product that compensates for the financial difficulties of sudden unemployment. The product's premium is calculated as 2,5 % of the monthly credit card debt. If the risk occurs, the insurers can cover their livelihood for a period.

In nearly 6 months, Aksigorta completed the first trial of embedding the credit card unemployment product into the credit card application screens in Akbank Mobile. The product went live in January 2023 with a cost of 120 man/day. The project team includes 10 people: 5 developers, 1 key business responsible, a product owner, a scrum master, a project manager, and a domain owner. All studies were conducted using agile working methods in collaboration with the Akbank IT team.

In three months, it was evident that the MVP was accurately chosen due to a high volume of applications. 12K policies were sold in the embedded journey, fully digital. When compared to contact center sales of the unemployment credit card product, which has been ongoing for 15 years, monthly case production was 1.5 times higher in the mobile flow.

The product is valid under the following circumstances: • If you are a permanent employee, and involuntary unemployment occurs, • If you are self-employed or a government official and incapacity is caused by accident or illness for more than 30 days, • If you are retired and admitted to the hospital due to an accident or illness lasting more than 30 days within the insurance period.

In Credit Card Unemployment Insurance, we cover the insured's credit card debt in undesirable situations such as unemployment, illness, and temporary incapacity for work. Additionally, we offer free dental care services to our insured individuals as an additional benefit through contracted health centers.

Process Design and Customer Journey The major contribution of the embedded flow to Akbank is boosting fee income market share. In 2023, the market share rose to 16.2% thanks to strong customer acquisition and increased cross-selling. In credit card application screens, the user experience was designed smoothly to complement supplementary benefits and products. Another advantage of this process is that it reduces friction in the buying process, as customers don't need to navigate to a separate website or contact an insurer. This also allows for customization based on the needs and analytical segmentation of the customer.