This is the last in a series of blogs about embedded insurance. Read part 1, part 2 and part 3.

To what extent is embedded insurance a result of changes in the insurance and technology landscape, and to what extent is it driving those changes?  

Effective tech-powered systems are the driving force behind successful insurer-retailer partnerships when it comes to embedding insurance.

Traditionally, the insurance industry has been held back by legacy systems, which haven’t allowed them to fully integrate with third parties such as retailers. Now, some innovative insurers are developing new digital strategies with integration in mind. Other insurers are partnering with experienced insurtechs that bring to the table extensive insurance expertise combined with the technological infrastructure essential for embedding insurance products. 

These emerging technologies enable insurers to modernise their legacy systems and meet customer needs through digital innovation, while remaining compliant. In this way the insurance landscape becomes fully automated – from quotation and customer acquisition to complete policy lifecycle support; and from billing and renewals to claims. Third-party retailers and distributors can harness this technology to incorporate relevant and agile insurance products into their own customer purchase journeys – swiftly, efficiently, and affordably. 

With new ways of thinking about insurance, combined with evolving retail models, opportunities and challenges abound when it comes to developing future strategies for protecting customer purchases.

Embedded insurance is not a magic bullet that is guaranteed to solve all insurers’ problems. Nor is it a product that will sell itself, succeed, and be profitable just because it’s there. The insurer wishing to enjoy the benefits that embedded insurance can bring must first ensure that the technology and revenue models have been properly set up to maximise the odds of success. 

Source: sapiens.com