2023 Focus Series: The Promise and Perils of Embedded Insurance



Price : $999.00



Six years ago, a new technology promised to revolutionize insurance. Consultants and some insurers argued that its use cases for insurers could include stimulating product and service innovation, enhancing fraud detection, and lowering administrative costs.


Six years later, blockchain—the technology that was so widely extolled—is rarely talked about by insurers. Today, a different solution to all that ails the insurance industry is far more frequently identified: embedded insurance.


Embedded insurance is insurance that is offered online in conjunction with other, noninsurance products and services. It presents an opportunity to obtain protection for those products and services.


Expressed thus, it does not sound revolutionary. However, embedded insurance has been heralded by some as a much needed “democratization” of insurance that can empower almost any retailer to sell insurance while making coverage far more accessible and comprehensible for consumers.


Readers can use this report to:



  • Explore scenarios for the future growth of the embedded insurance market

  • Understand the implications of the further development of embedded insurance distribution for insurers, reinsurers, and brokers

  • Read use cases for embedded insurance in personal auto and travel insurance


Key questions answered in this report include:



  • What are the insurance industry challenges that embedded insurance seeks to address?

  • Who will be the main beneficiaries if embedded insurance expands significantly as a distribution channel?

  • What lines of business are most likely to be impacted by embedded insurance solutions? Will embedded distribution reduce the cost of insurance and shrink the protection gaps that currently leave both consumers and businesses dangerously underinsured against many perils?



Table of Contents:


Introduction


Executive Summary



  • Market Still in its Infancy

  • Growth Scenarios


A Latecomer To The Embedded Finance Revolution



  • Technology Advances


Insurance's Branding Problem


The Promise of Embedded Insurance


The Perils of Embedded Insurance



  • The Perils of "Democratization"


Use Cases



  • Personal Auto Insurance

  • Travel Insurance


Implications For Insurance Market Participants



  • Implications for Insurers

  • Implications for Reinsurers

  • Implications for Brokers


Conclusion


Introduction

In this report, we weigh the claims of these InsurTech founders and technology consultants as they relate to the U.S. property-casualty insurance market. The transformation key for insurance has often been heralded in recent years, including as a result of the adoption of blockchain. This transformation—to date—has largely failed to materialize. However, the possibility of transformation cannot be discounted. There are undoubtedly many problems with the way in which today’s insurance market works. Might embedded insurance be part of the answer?