Page 44 - Insurance Times Octoberr 2022

HOW EMBEDDED INSURANCE IS CHANGING

INDIA'S INSURTECH LANDSCAPE

mbedded insurance is the real-time bundling and to pay a nominal fee above the transaction cost. Embedded
E sale of insurance when a consumer purchases a insurance is made simple and affordable through this
product or service at the point of sale.
issuance process, which also gives insurers access to
untapped and underserved markets.
It is changing the way people buy insurance by expanding
opportunities and building strong customer journeys, making For instance, rural India has a high demand for life insurance
it easier for customers to access insurance or warranty products, but traditionally, it has been difficult to sell these
products. services there. With the advent of embedded insurance
processes, insurers can now serve this untapped market by
The inherent convenience and personalisation have ensured providing services like credit life insurance, hospicash, and
that India's embedded finance industry will grow by 46% to personal accident Insurance through microfinance without
INR 1,61,442 Cr by 2029. having to rely on costly distribution channels like conventional
banks.
It took a pandemic to force multiple sectors to accelerate
their digital agendas and insurance is no different. As per a How is it Disrupting the Industry?
recent global survey, 96% of insurance CEOs felt that COVID-
Embedded technology is changing the way people buy
19 served as the digital catalyst that fast-tracked digitisation
insurance by expanding opportunities and building strong
of operations and led to the creation of next-generation
customer journeys, making it easier for customers to access
operating models.
insurance or warranty products throughout the purchase
cycle.
A growing spate of insurance companies and ecommerce
firms are now integrating artificial intelligence (AI), internet
Here are some examples:
of things (IoT), big data analytics, machine learning, open
Online cab services are offering ride insurance for an
application programming interfaces (API), and other
amount as low as Rs.2 while you are making the
technologies to deliver a hassle-free customer experience
booking.
and transform the Indian insurance industry. Embedded
insurance is only getting started, but it has the potential to Warranty and insurance products are being offered
become a trillion-dollar business. while purchasing electronic devices, appliances against
theft, appliance protection, etc.
What is Embedded Insurance? Travel aggregators have embedded travel insurance for

Embedded insurance is the real-time bundling and sale of loss of luggage, trip cancellation or delay.
insurance when a consumer purchases a product or service
at the point of sale. This insurance could either be Along with seamless purchase journeys, the breadth and
complementary (like a warranty) or a consumer may need depth of embedded products is rapidly increasing.

44 The Insurance Times, October 2022