5 perspectives on the rising popularity of embedded insurance

October 31, 2022 10:26 AM

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The practice of embedding insurance at point of sale looks set to continue unimpeded, if the latest figures are anything to judge by. The U.S. market value for embedded insurance was $5 billion in 2020 and projected to rise to $70.7 billion in 2025, according to Lightyear Capital.

Read more about the upward trajectory of embedded insurance in our roundup.

Q&A: Explaining embedded insurance with Jess Hurley, EIS

Embedded insurance has already made a significant mark in property and casualty, and while it has yet to break fully into the life and health insurance space, insurers continue to explore new ways to embed products and reach their customers.

In an interview with Digital Insurance, Jess Hurley, P&C insurance industry product marketing lead at EIS, discussed how embedded insurance differs from the current insurance ecosystem, what impact it is having on the interaction between customer and insurer, and what challenges traditional carriers may encounter with embedding insurance products.

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Q&A: Explaining embedded insurance with Jess Hurley, EIS

How embedded insurance may close coverage gaps

Renting a car online when going on vacation far from home is fairly common, as is being offered the option to add collision damage insurance at checkout, a prime example of embedded insurance in action.

As insurers look for new ways to provide financial protection to consumers, they are increasingly embedding insurance products online next to related products and services, where insurance coverage may also be something they need.

In this way, insurers can expand their reach into new distribution channels, offering speed, accessibility and convenience to consumers, while also closing potential gaps in coverage.

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How embedded insurance may close coverage gaps

Personal lines distribution: From agents first to agents last?

Direct distribution models in personal lines insurance have been increasing steadily in number over the past two decades, with the agent playing a key role.

However, the digital transformation of the industry has seen new insurtech options enter the playing field, including direct digital via web/mobile and insurance embedded at the point of sale, for example as part of an auto rental sales transaction.

Where do these new insurtech options leave the agent? Whether direct digital or embedded insurance, somewhere in between.

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Personal lines distribution: From agents first to agents last?

How embedded insurance is transforming the industry

As consumers increasingly use digital technology for its speed and convenience in their shopping, and insurers continue to look for new ways to reach their target audience, embedded insurance is set to change the way people purchase the coverage they need.

Offered to customers as an add-on to their primary purchase at checkout or as a native component of a third-party transaction, embedded insurance is growing in popularity with both consumers and insurance carriers.

With host liability insurance already available as an embedded option on Airbnb and Tesla offering insurance to customers in five states when they shop online, it's clear that embedded insurance is the way of the future.

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How embedded insurance is transforming the industry

Movinx CEO Q&A: Embedded, global mobility insurance

The product of a strategic partnership between Swiss Re and Mercedes-Benz , Movinx is a joint venture that integrates automotive and mobility insurance products in a fully digital and seamless way at the point of sale of mobility service providers.

Dr. Caro Gabor, CEO of Movinx, talked with Digital Insurance about the changes impacting the auto industry and auto insurance sector, her belief that the future of insurance is embedded, and the need for auto insurance to undergo a complete reimagining to deliver what customers want.

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Movinx CEO Q&A: Embedded, global mobility insurance