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Embedded Insurance: Tech Enabling New Distribution Models

embedded insurance

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The potential of embedded insurance is immeasurable. This alternate distribution model can provide ease, efficiency and convenience for consumers.

We’re deep diving into how embedded insurance works, and how incorporating embedded insurance adds value to the customer, the insurers and the host platforms. 

How Embedded Insurance Works: Meet Host Platforms

The basic idea behind embedded insurance is adapting the buying process of insurance to meet consumers where they are. So, what does this mean? Essentially, a third party technology seamlessly integrates and embeds their API into a host platform. This host platform already has a relationship with the consumer. 

The host platform connects their consumers to insurance companies/brokers using this API integration. This process allows host platforms to provide value, an additional financial product every small business should have (and will buy from someone else), and receive fair compensation. 

Adapting Insurance: Bringing Value to the Consumer

Current distribution models of insurance still lag behind the virtual experiences we have come to expect, especially when purchasing products and services. Most small businesses begin their insurance search online. But, only 1% purchase virtually, and most policies are still bound offline. 

Embedded insurance aims to transform this process. By allowing the host platform to leverage something they’ve already gained from the consumer – trust. Solely meeting consumers where they are isn’t enough to close the gap between the 1% who already buy online and the 33% who say they would.


An overlooked value of an embedded insurance offering is the increased customer data it can provide. Insurers, Agents/Brokers and Host Platforms will have access to data focused on the quoting process.

Data provides a better understanding of your customer base and the associated carrier responses/premium values. Data insights will allow Host Platforms another way to monetize new offerings. And Insurers/Brokers will gain valuable insights into submission process efficiencies.

Embedded insurance has incredible potential. (If executed properly.) Technology can and will allow for an easy, accessible and convenient procurement process, but what nudges the consumer past just interested to actually purchase is trust.

People buy from sources they trust, and in this case that’s the host platforms and the brands they offer their consumers to secure products and services.

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