CUSTOMER EXPERIENCE ( CX )
services . “ Embedded insurance is a big part of this - enabling seamless , convenient and diverse insurance options to be made available to the consumer much more quickly than before , as well as boosting revenues for the brand by integrating these insurance options . So much so , embedded insurance is expected to create US $ 3tn in market value for industry players ,” he continues .
However , neither traditional insurers nor insurtech companies can successfully navigate the embedded insurance market independently ; they need each other to thrive .
“ While insurtechs have created agile , intelligent software that is built on open banking APIs and can deliver customised product offerings , the challenges lie in integrating insurance . In European markets , most insurtechs still do not have the flexibility to underwrite their own products , because they don ’ t own the products that they manage . Many turn to third-party underwriters instead to avoid the complex process of gaining international licenses .” Incumbents , on the other hand , have brand confidence and customer trust after years of delivering policies . They also have the infrastructure and capabilities to navigate regulatory demands . Yet they fall down where insurtechs succeed : the technology . Many traditional insurers have legacy systems that struggle to integrate with digital ecosystems and APIs . Thus , combining an incumbent ’ s exhaustive compliance and underwriting experience with the modern tech capabilities and flexibility of an insurtech is critical to realising the potential of embedded insurance . This type of collaboration necessitates cross-functional efforts and engagement at all levels within both the insurtech and the brand . It ’ s akin to