Gil shares his perspectives on launching new embedded insurance ventures, the impact of economic conditions on the insurtech market, and his expectations for an upcoming plenary session on the topic.
Embedded insurance has emerged as a fertile ground for innovation, with startups aiming to seamlessly integrate insurance products into other services and apps. Gil’s expertise in this space provides valuable advice for entrepreneurs looking to capitalise on the opportunities in this rapidly evolving field.
Yuri Poletto: You have invested in some of the most successful embedded insurance companies, like bolttech and Next Insurance, just to mention two. What would be the first recommendation that you would give to an entrepreneur willing to launch a new embedded insurance company?
Gil Arazi: The embedded insurance space presents an exciting opportunity for innovation. My first recommendation would be to relentlessly focus on the customer experience. Embedded insurance should be seamless and intuitive, providing coverage precisely when and where needed without burdensome processes.
Achieve this by deeply integrating not just technologically, but by truly understanding the customer journey within the host product or service. Start by identifying a significant, underserved customer pain point, then work backwards to design an effortless insurance product that addresses that need.
Also crucially important is having high technological efficiency to reduce transaction costs, as embedded insurance products are typically low-premium. Ensuring sufficient margins on every dollar of premium is key for a successful embedded insurtech.
Yuri Poletto: What impact do you think the new possible future economic and business scenario can have for the insurtech market?
Gil Arazi: The insurtech market has a unique resilience driven by digital transformation imperatives, new technologies enabling new insurance markets and coverage needs, and evolving consumer expectations.
In challenging economic times, we may see insurers increase focus on efficiency and cost reduction. This could accelerate adoption of AI for personalised pricing and operations automation, IoT for risk management, and other insurtechs.
However, the higher cost of capital could favour capital-light models and initiatives in the current environment.
Yuri Poletto: What are your expectations for our upcoming London plenary session?
Gil Arazi: My expectations are twofold – inspiration and collaboration. I look forward to hearing diverse perspectives from insurtech leaders that will spark new ideas and innovative opportunities.
Moreover, I see this as a platform to foster meaningful connections and potential collaborations with others to push what’s possible in our field. I’m always eager to discuss new investment prospects, initiatives and take an active role in driving our ecosystem forward.”
Gil will also be speaking at Open and Embedded Insurance Observatory Plenary Meeting 2024 on 19 March 2024. Find more details here: https://openinsuranceobs.com/plenary-meeting-london-2024/
