Source: Insurance Thought Leadership

Written by Dennis Li

Embedded insurance (also known as IaaS, Insurance-as-a-Service) in the U.S. market is gaining popularity in the age of information and rising consumer expectation of convenience. Insurance products previously purchased in a standalone fashion are now available as an integrated experience. Mature insurance application programming interfaces (APIs) and accelerated underwriting have enabled the integration of insurance with non-insurance digital products, platforms and services.

Embedded technologies allow customers to purchase insurance as part of a process they are familiar with instead of being an ad-hoc event, bringing convenience and ease of use. Embedded insurance is fundamentally changing how consumers engage with insurance and the mode of insurance sales.

However, the conversation about embedded insurance has largely remained within the P&C space over the past years, and for a good reason. In comparison with P&C products, such as warranties, rent insurance, jewelry insurance and even homeowner/auto insurance, personal life and supplemental health insurance are non-compulsory, mostly not use-case specific, require a decades-long financial commitment and are much more complex.

These headwinds make it challenging to embed life and supplemental health products in a way that would attract consumers, and most embedded partnerships for L&H products did not last long.

Read the full article: https://www.insurancethoughtleadership.com/life-health/embedded-insurance-challenges-and-opportunities