Embedded thinking needs to evolve

A good article in The Digital Insurer on some of the mind set shifts and opportunities with embedded insurance - well worth a read.

My key takeaways and some good quotes :

> The idea of embedded insurance is not new, however "...it is now coming of age, in a similar way to how the Apple iPod revolutionised the delivery of portable digital music."

> While not new, the intersection of data, technology and growing consumer acceptance of digital and desire for simplicity, low friction transactions favours slick "embedded" propositions - two good quotes:

"The primary difference between embedded insurance of old and new – is that the technology standing behind it today, is fully integrated. It does not require traditional sales, instead it is offered as a feature native not only to the platform being used, but to the specific purchase cycle. In that sense, it is literally a game changer, where the union of data science, artificial intelligence (AI), and real-time communication deliver the coup de grace to traditional insurance sales models."

“Fully digital, embedded insurance solutions aim for lower operational cost, a fast go-to-market, a customisable infrastructure, and most importantly customer-centric products.”

> China leads when it comes to embedded propositions with Ping An being a poster child!

> There remain a series of regulatory considerations still be traversed including:

– Whether the product is suitable for the customer’s needs

– Whether the product is appropriately priced to meet specific requirements around pricing fairness

– Ensuring consumers do not "unknowingly" purchasing the product during the sales process

The evolution of embedded insurance poses a very interesting threat (and opportunity) for incumbent insurers. Will it materially redefine the way insurance is distributed? Some commentators seem to think so...

Source: The Digital Insurer