The transformative power of technology is dismantling traditional barriers across the insurance value chain, from underwriting to claims management, and perhaps most notably, within delegated authority distribution. Once siloed structures and painstakingly manual processes are being replaced and transformed in an ongoing technological evolution. This year, we'll see more insurance sold by non-insurance brands than ever before — a shift driven by a perfect storm of innovation and market demand.
The scale of this opportunity is significant: Embedded insurance currently represents between 3% and 5% of global insurance GWP (approximately $213-355 billion), and insurers anticipate this share could increase to 15% (approximately $1.1 trillion) by 2033.
This growth is being driven by the increasing integration of insurance products into other ecosystems at the point of need — from travel insurance embedded in holiday bookings to device protection offered alongside smartphone purchases. Major brands are already seeing success with this model: BMW Financial Services now manages over 4 million insurance policies, while Volkswagen Financial Services oversees 6 million policies. This transformation is reshaping how insurance products reach consumers, with non-insurance brands becoming key distribution channels in the digital age.
Delegated authority has also seen significant growth. Recent analysis by Oxbow Partners shows that delegated authority business has more than doubled from £10.4bn in 2018 to £22.1bn in 2023 in the Lloyd's market alone, increasing from 30 to over 40% of total premium. This trajectory is expected to continue, with delegated authority predicted to exceed 45% of market premium by 2027.
But embedded insurance is just the beginning. Digital distribution encompasses a wide range of innovations, from omni-channel experiences to bespoke affinity partnerships, all of which enable non-insurance brands to become active players in the insurance value chain. Retailers, telecom providers, and utility companies are now leveraging low-code platforms and API-first architectures to bring tailored products to market faster than ever before. This democratization of distribution is poised to reshape the insurance landscape by 2025.
Breaking down silos in delegated authority
Delegated authority distribution has historically been a complex and fragmented domain. Legacy systems, disparate data sources, and manual processes often impede efficiency and growth. However, technology is tearing down these silos. Modern platforms equipped with advanced data management capabilities and SaaS-driven scalability are enabling managing general agents (MGAs) and brokers to integrate seamlessly with insurers. This evolution is particularly transformative for affinity partnerships, where flexibility and speed-to-market are critical.
The future of delegated authority is increasingly clear: Coverholders will operate as digital front-ends for underwriters, creating seamless digital journeys from brokers to capacity providers. This transformation will enable real-time portfolio monitoring through dashboard-based systems, replacing periodic performance reviews. The result? Lower volatility, improved loss ratios, and reduced operational costs. A key advantage to end customers lies in claims management. By leveraging modern platforms and digital capabilities, delegated authority providers can offer a significantly enhanced claims experience. Real-time data exchange enables faster claims processing, more transparent communication with policyholders, and quicker settlement times. For example, straightforward claims can be automated and settled within hours rather than days or weeks, while more complex claims benefit from improved data flow between all parties. This not only reduces administrative costs but also significantly improves customer satisfaction — a crucial factor in today's competitive insurance landscape where customer experience increasingly drives retention and growth.
For underwriters and other stakeholders (re-insurers, regulators) the impact of improving data quality is game changing. By harnessing rich, real-time datasets, stakeholders across the value chain can make faster, more informed decisions based on single versions of the truth. From underwriting to claims processing, the benefits of accurate, on-demand data are undeniable.
The power of low-code and API-driven solutions
The proliferation of low-code platforms and API-first solutions is driving a seismic shift in how insurance products are developed and distributed. These technologies enable product teams to prototype, build and deploy custom solutions without requiring extensive technical expertise. For insurers, this translates to lower development costs and faster implementation timelines. For non-insurance brands, it opens the door to participating in the insurance value chain with minimal barriers to entry.
The result? A democratization of innovation. By 2025, we will see a marked increase in self-sufficient product teams within insurance providers and their partners. These teams will be equipped to iterate rapidly, respond to market demands, and deliver tailored solutions that resonate with modern consumers.
Omni-channel experiences for the modern consumer
Today's consumers expect convenience, accessibility, and personalization. Omni-channel distribution is no longer a nice-to-have; it is a necessity. Forward-thinking insurance platforms are empowering policyholders to interact with their providers across multiple touchpoints, whether online, via mobile, or in-store. This flexibility not only enhances the customer experience but also provides brands with valuable insights into consumer preferences and behaviors.
For corporate partners, the ability to integrate front-end systems with robust back-end platforms is proving transformative. These integrations enable them to offer bespoke insurance solutions that align with their brand values and meet the evolving expectations of their customers. As a result, insurers and non-insurance brands alike are finding new ways to differentiate themselves in an increasingly crowded market.
A vision for 2025 and beyond
As we look ahead, it is clear that the boundaries between insurers and non-insurance brands will continue to blur. Technology is breaking down the walls that once confined innovation, fostering a new era of collaboration and growth. By empowering stakeholders across the value chain to think differently, act quickly, and leverage data effectively, we are witnessing the dawn of a more agile, inclusive, and consumer-centric insurance industry.
The convergence of digital distribution innovations, delegated authority transformation, and omni-channel experiences will reach critical mass by 2025. More insurance will be sold by non-insurance brands than ever before, driven by platforms that prioritize simplicity, scalability and customer experience. Success in this new landscape will depend on having a clear strategy supported by robust technology infrastructure. Those who fail to adapt risk being left behind as the industry evolves toward more efficient, data-driven operations. The winners will be those who embrace digital transformation today, building the foundations for tomorrow's insurance marketplace.
