Embedded Insurance: A Race to the Bottom or a Missed Opportunity?

Embedded insurance has been the buzzword of the last few years and to be fair, the theory makes total sense. Meet the customer where they already are. Make it frictionless. Bundle cover into something they’re already buying.

And yes, it can work. But for every slick embedded travel policy or bike insurance offered at checkout, there’s a dozen half-baked ideas where the customer doesn’t understand what they’ve bought, doesn’t value it, and doesn’t claim when they need to.

The real risk with embedded isn’t innovation, it’s irrelevance. Stick a clunky policy next to a trendy product, and you get the worst of both worlds: a poor experience and a devalued brand.

On the insurer side, the temptation is to price thin and go wide. On the partner side, it’s to upsell and forget. But the magic only happens when:

• The product is actually useful

• The pricing reflects risk, not just uptake

• There’s thought given to what happens post-sale

So is embedded insurance a missed opportunity? No but only if it’s done properly. When it’s just a bolt-on or a gimmick, customers smell it a mile off.

Do fewer, better embedded products and start with the pain points, not the platform.

The views expressed in this article are those of WHO2 Global Ltd and do not constitute professional advice. All content is for informational purposes only.