5 perspectives on the rising popularity of embedded insurance

Embedded insurance has already made a significant mark in property and casualty, and while it has yet to break fully into the life and health insurance space, insurers continue to explore new ways to embed products and reach their customers.   

In an interview with Digital Insurance, Jess Hurley, P&C insurance industry product marketing lead at EIS, discussed how embedded insurance differs from the current insurance ecosystem, what impact it is having on the interaction between customer and insurer, and what challenges traditional carriers may encounter with embedding insurance products.  

Read more: Q&A: Explaining embedded insurance with Jess Hurley, EIS

Renting a car online when going on vacation far from home is fairly common, as is being offered the option to add collision damage insurance at checkout, a prime example of embedded insurance in action.

As insurers look for new ways to provide financial protection to consumers, they are increasingly embedding insurance products online next to related products and services, where insurance coverage may also be something  they need.

In this way, insurers can expand their reach into new distribution channels, offering speed, accessibility and convenience to consumers, while also closing potential gaps in coverage. 

Read more: How embedded insurance may close coverage gaps 

Direct distribution models in personal lines insurance have been increasing steadily in number over the past two decades, with the agent playing a key role.

However, the digital transformation of the industry has seen new insurtech options enter the playing field, including direct digital via web/mobile and insurance embedded at the point of sale, for example as part of an auto rental sales transaction.

Where do these new insurtech options leave the agent? Whether direct digital or embedded insurance, somewhere in between.   

Read more: Personal lines distribution: From agents first to agents last?