Page 21 - Insurance Times January 2023

offer consumers a full stack of services from quote Bundled embedding: Customer buys multiple services
generation, authentication, premium collection, and claims including the insurance with one click. It is popular in
intimation - submission and tracking. Product innovation is the automotive industry where car finance, car service,
the key. and car insurance are bundled in an all-inclusive offer.
The bet today is on embedded insurance
There is a lot of work being done on risk-based solution
products is the way forward. Insurers are designing or a Conclusion: To create an ecosystem for insurance
made to do so by intermediaries, products based on companies, insurers need to expand partner network and
telematics behavior for a scientific calculation of premium. drive additional business through the API driven technology
Pay as you use and pay how you use will help consumers - You have APIs single point of sales (marketplace) where
pay considerably less than a conventional plan. Option of your API is hosted or multiple Point of sales where APIs from
purchasing a single policy for a fleet of vehicles also eases multiple companies are hosted and you are one such insurer.
administration. The information that is hosted on these API's differ in type.
In single point API you need to support basic information
Claims Management and Fraud mitigation: Insurers are for the transaction to be completed but when you are on
under pressure to adapt technology to improve the multipoint API the challenge is to be as transparent as
customer experience with respect to claims. Integration of possible on pricing , coverage's to have the competitive edge
Artificial intelligence in easing claims administration and . Your API is of no use if it does not create a "win-win"
faster claims settlement seems to be the need of the hour. monetization scenario for yourself and your partners. Hence
it's just not the API concerned its also how to create a
Automation improves efficiency, reduces costs, filing of
competitive advantage using APIs.
claims from anywhere, anytime, minimize fraud and
enhance client satisfaction.
Insurers have to believe in a truly mobile, digital
environment, and that no insurance carrier should require
Embedded insurance refers to bundling of insurance
a physical infrastructure to interact with outside counsel, a
coverage within a product or service itself, offered at the
network of automobile repair/body shops, external public
point of sale or service. Conventional channels of distribution
relations firms, marketing communications firms, full-service
have been unable to plug the gap. Industries like hospitality,
marketing firms, property remediation firms, or physical
travel, tourism, mobility, and housing are set to reinvent
rehabilitation.
themselves as digital ecosystems. Embedded Insurance, via
bundling of insurance products with the core offerings of
Insurers must adapt newer forms of technology and
industry players can help to increase insurance penetration.
innovate on traditional practice. The use of Internet of
Global precedents have shown that the embedded insurance
Things, Artificial Intelligence, Machine Learning, Big data
model works well for enterprises to differentiate the core
and connected devices which are driving other sectors will
product/ service offering, act as a source of revenue and
drive Insurance too. To understand risk better insurers, must
offer a source of competitive advantage.
rely on Data analytics and Predictive Models, Underwriting
can immensely benefit from Artificial Intelligence and
India is estimated to have a $650 Bn protection gap.
Machine Learning can help insurers underwrite risk
Enterprises, Regulators, Distributors and Insurers alike need
effectively. Embedding insurance through wearables can play
to work together and create an environment where it is
a crucial role in underwriting in both Life and Health
easier to innovate in this space. Embedded insurance will
Insurance.
enable insurers to address the protection gap and increase
penetration seamlessly through B2B2C. Embedded system
Telematics and IoT devices can help track driving habits. IoT
also substantially reduces acquisition costs. There are 3
and AI can help in fraud detection. The advantages of
models an insurer can choose from:
adoption to technology outweighs any disadvantages if any
Related embedding: offering insurance in the partner's as its help's insurers drive excellence across the value chain,
own digital universe.
personalize product design, become, proactive risk
Linked embedding: turning the partner's point of sale managers. While disruption is not always welcome in a
into an insurance sales channel. regulated industry, there is no looking back now.
18 January 2023 The Insurance Times