Original text here from Patrice Bernard (LinkedIn)
Younited, a French fintech company already established in the European consumer credit landscape, is increasingly looking to cater to the ancillary needs of its loyal user base. Staying close to its core business, the company is set to venture into insurance this fall.
This isn't the company's first foray into insurance; for some years, its solutions have included optional but standard "borrower" coverage integrated into its various subscription processes, protecting consumers from missing repayment installments due to incapacity. This fundamental module will soon be complemented by a range of additional products, culminating in the launch of a dedicated line called Younited Care.
The initial offering will be income protection insurance (with potential benefits up to 1,800 euros per month), available in France from next month, to complement the existing borrower insurance. While the combination of the two isn't inherently illogical, I must admit I'm not entirely convinced of its necessity, particularly as it may lead to confusion for users faced with making two choices at once.
However, the subsequent offerings are likely to be more persuasive, as they fall into the category of affinity insurance. After all, what's more frustrating than continuing to pay installments for a product you can no longer use? The idea is to offer customers coverage for risks associated with the financed item, with terms tailored to the various categories in Younited's portfolio: theft or breakage of electronic devices, cancellation of trips or weddings, automotive issues, and so on.
Younited's future insurance products are being developed in collaboration with Owen, a French startup specializing in embedded property insurance. Owen's APIs, which are easy to implement (requiring only a few weeks for full integration), will enable a seamless and frictionless integration of the insurance subscription process into the customer experience, likely boosting adoption. Naturally, following this step, Owen will handle all the contractual formalities and any potential claims.
The strategy Younited is employing is rooted in a well-known and widespread field, one that exists in various forms. However, introducing affinity insurance within the financing realm brings several benefits over the standard solutions typically available at the point of sale. These include increased trust in the financial intermediary, accessibility for all merchants, and the contextualization of protection relative to the credit commitment. These factors could potentially improve the reputation of a model that often receives negative press.
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