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Embedded Insurance: From Point-of-Sale to Point-of-Design

Jon Davies
08-Aug-2023 13:42:33

In today's fast-paced world, how products and services are designed and delivered constantly evolves. The insurance industry, traditionally perceived as static and resistant to change, is no exception. Recent years have witnessed the rise of a powerful concept: Embedded Insurance. And at InsuredHQ, we've keenly observed and actively engaged with this transformative shift from a regulatory and good-design perspective.

Embedded Insurance, at its core, refers to integrating Insurance directly into non-insurance products or services. Instead of treating Insurance as a separate, often cumbersome purchase, the idea is to weave it seamlessly into the consumer's experience. This approach can (if executed well) make acquiring Insurance more intuitive and enhance the value proposition of the primary product or service on offer.

Outside of regulatory limitations in some countries (as Insurance in some nations is managed under financial advisory control), how does this shift affect the broader landscape? Let's delve into the implications and potentials of the move from point-of-sale to point-of-design.

Understanding the Value Proposition

Traditionally, Insurance has been an 'add-on' at the point of sale. However, to truly tap into the potential of embedded Insurance, there's a need to integrate it during the product's very design phase. It's like the difference between buying a car and then separately considering an insurance plan versus choosing a vehicle with tailored insurance options built into its purchase journey.

Our Observations in Action

At InsuredHQ, while we've developed tools and strategies around conventional insurance paradigms, our experience has shown the benefits of deeper integrations. The feedback loop with our clients and partners often gravitates towards more seamless interactions where Insurance is a part of the broader offering rather than a standalone entity.

Collaborative Efforts

One of the challenges of embedded Insurance lies in collaboration. Integrating Insurance into non-insurance products requires combining different industries and experts. There is no one-size-fits-all, so bespoke well-designed solutions are often needed. Given our vantage point in the industry, we've been in a unique position to foster and witness these collaborative efforts.

Agents in a New Light

Agents, the longstanding intermediaries in the insurance world, also see their roles subtly shifting in this new landscape. They become more than just policy sellers; they evolve into solution consultants who offer a blend of products, services, and Insurance tailored to individual needs. It's an exciting transition, one that brings fresh challenges and opportunities.

Charting the Path Forward

The journey from a point-of-sale to a point-of-design perspective in Insurance is transformative. At InsuredHQ, we've both watched and participated in this evolution, offering our insights, expertise, and, at times, our own learnings. The future of Insurance is integrative, inclusive, and incredibly promising. And while we remain rooted in our deep industry understanding, we're always eager to explore this shift's horizons.

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