Is embedded insurance the new norm?

The embedded insurance market is rapidly booming. Gross written premiums are projected to surge from USD 156.06 billion in 2024 to USD 703.44 billion by 2029, reflecting a compound annual growth rate of 35.14%, per a Mordor Intelligence report . Asia, home to over 4 billion potential customers, is poised to be the largest growth market for this innovative insurance model.?

Why embedded insurance? At its core, it is built on a simple principle: delivering what customers need, exactly when they need it, without the usual complexities. It focuses on understanding personal needs while catering to a universal demand for convenience. Imagine a car dealership offering financing, maintenance plans, and tailored insurance coverage — all at the point of sale.?

Traditional insurers must now adapt to an interconnected ecosystem. To thrive, they must embrace innovation and agility, adopt ecosystem-driven approaches, and integrate the customer journey into their business models, developing real-time adaptability and scalability.??

Top five areas for insurers to focus on?

Transitioning to an embedded insurance model requires a strategic focus on these five key areas:?

1. Distribution model: Offer plug-and-play insurance products to streamline the buying process. By integrating insurance offerings at key purchase points, you enhance customer accessibility while reducing operational costs.?
2. Digital operating model: Accelerate automation and real-time data analytics to optimise workflows, boost operational efficiency, enable quicker response times, and reduce costs across all functions.?
3. Product and proposition: Shift towards parametric, usage-based, behavioural-based, and location-based insurance offerings. Implement dynamic pricing that aligns with individual risk profiles, providing more personalised and precise coverage options.?
4. Technology and data: Partner with insurtechs to adopt cutting-edge platforms, such as low or no-code systems. These technologies support data-driven business models and enable seamless embedding of insurance into an API-driven ecosystem, unlocking scalability and flexibility.?
5. Capabilities model: Move away from the traditional monolithic, self-contained “do-it-all-yourself” approach and embrace an open ecosystem-driven model. This shift enables insurers to become more agile, responding swiftly to market changes and customer needs.?

Embedded insurance is about more than just offering products — it's about transforming the customer experience and adapting to a new, integrated ecosystem. As this market grows, insurers must innovate their products, services, and delivery models to meet rising expectations. Those who succeed in creating seamless, customer-centric solutions will be best positioned to capture this burgeoning opportunity.?

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For expert advice on how embedded insurance can transform your business, feel free to reach out to Joel Lim , Head of Insurance and Partner at Synpulse, at [email protected] .?

A special thank you to Joel for sharing his valuable insights in our latest podcast episode. For a deeper dive into the podcast, listen to the full episode here:? ?

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Watch this space??

Next week, we’ll delve into legacy modernisation in insurance, exploring the challenges in dealing with outdated core systems and strategies for overcoming their limitations.?

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