Embedded Insurance
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Paynter, K
Van der Vyver, E
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Tarr, Anthony A
Tarr, Julie-Anne
Thompson, Maurice
Wilkinson, Dino
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Abstract
Emerging technologies are facilitating partnerships between insurers and non-insurance brands to create value and opportunity. Embedded insurance, where insurance is offered within or in conjunction with the purchase of a non-insurance product or service from a third party, displaces the current paradigm where insurance is taken as a “second step” after the underlying asset or event is confirmed. It is a term many are familiar with, but with technologies such as big data, artificial intelligence (AI) and distributed ledger technology, embedded insurance is rapidly evolving and presents significant opportunities. This evolution must be cautiously navigated over the next decade to balance consumer protection dynamics with the growth of, and innovation within, the insurance industry. Embedded insurance options can help reduce the insurance gap but need to be relevant to customers and provide real value to reduce financial uncertainty and make accidental loss manageable. Globally, many jurisdictions are approaching embedded insurance with caution as regulators and industries seek to better understand and appreciate the opportunities and assess the corresponding risks it brings to consumers and the economy. This chapter will describe the ways in which technology is supporting embedded insurance and will discuss the evolution of embedded insurance and the legal frameworks in which it operates. Two case studies from Cover Genius, “the insurtech for embedded protection,” are included to provide insights into the end-to-end journey of embedded insurance from policy creation to claims management in an online world.
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The Global Insurance Market and Change: Emerging Technologies, Risks and Legal Challenges
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1st
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McDonald, A; Paynter, K; Van der Vyver, E, Embedded Insurance, The Global Insurance Market and Change: Emerging Technologies, Risks and Legal Challenges, 2023, 1st, pp. 66-94