Navigating today’s insurance landscape is complex and challenging. New digital technologies, consumers’ heightened expectations for more personalized service, and increased risks are putting insurance companies under pressure. For enhancing products and finding new ways to stay relevant in a fast-evolving market, embedded insurance can be the answer.
In our new whitepaper, “Embedded insurance: A new route to growth and value,” we explain the advantages of embedded insurance, and how it can help insurers stay competitive in this ever-evolving marketplace. Here’s an overview:
What is embedded insurance, and how does it benefit insurers?
Embedded insurance allows any developer or product manager at any brand, in any sector to quickly and easily test and integrate innovative digital risk solutions, either to generate new revenue or to make their products more attractive with the added value of insurance. Leveraging a technology platform that features thousands of open APIs and low-code configuration is at the heart of achieving those goals.
Industry trends that are giving rise to embedded insurance
- The emergence of new technologies: Insurance companies have been pivoting in recent years, introducing a series of innovative approaches aimed at maximizing convenience for customers. These include microinsurance, on-demand insurance, usage-based insurance, behavior-based insurance and parametric insurance. Both insurers and brands are recognizing the potential of the digital technologies behind these approaches to combine their offerings, products, or propositions to jointly provide more personalized, timely, and relevant offerings to a wider set of customers.
- Changes in consumer behavior: Customer expectations have undergone unprecedented change in recent years, as digital transformation narrows the gap between products and services at different companies and makes experience and service a much higher priority for customers. And yet, insurers have failed to keep up, driving consumers to look for alternatives to traditional suppliers.
Opportunities for embedded insurance
The growth of embedded insurance presents enormous opportunities for stakeholders across the insurance market (carriers, managing general agents, brands and customers). It has the potential to rejuvenate traditional insurance business and distribution models and enhance the way insurers add value to end-users and society as a whole.
With the potential to generate more than $3 trillion in new market value, embedded insurance offers insurers an opportunity to gain market share, launch new products and services fast, and enhance customer value.
For more, check out the full whitepaper, “Embedded insurance: A new route to growth and value,” and to find out how EIS can help, book a call.