Embedded insurance is already a $3 trillion market opportunity and we believe it could be the next Amazon in both scale and market size.
The real-time bundling and sale of insurance, embedded insurance is a seamless way to deliver value across the industry.
- Potential for new revenue streams and lower distribution costs. This benefits everyone. Customers get more affordable insurance when and where they need it while insurers expand revenue and sales opportunities and reduce risk and acquisition costs. It’s a clear win-win.
- Technology for all. Advanced data platforms automate the insurance process to create much-needed efficiencies and transparency. Insurers can increase speed to market while data insights support informed decisions. User-friendly technology supports sales and customer satisfaction. Again and again, the technology of embedded insurance comes out on top.
- It bridges the coverage gap. One of the biggest opportunities for embedded insurance is the unbanked or underbanked market, since embedded products can work for those without bank accounts and reach consumers in need. The global protection gap approached $1.2 million in 2019, according to Swiss Re, thanks to natural catastrophes, mortality rates and health care. When insurance is integrated into the purchase journey and offered at a lower cost, it streamlines the entire process.
- It’s hassle-free. Let’s face it: The traditional insurance process involves a lot of hoops to jump through and a lot of red tape. Unlike Amazon, it is anything but simple and stress-free. Embedded insurance, like the retail behemoth, is just one click away. Both the purchase and claims processes are absolutely seamless, removing layers of frustrating paperwork and phone calls, verifications and forms.
Embedded insurance could account for more than $700 billion in gross written premiums in property and casualty insurance alone by 2030—representing one-quarter of the global market—according to industry analyst Simon Torrance.
At Accelerant, embedded insurance is in many ways aligned with our vision of delivering value at just the right time. Want to learn more? Reach out at [email protected].