“ While some financial services have found success in consumer trends , insurance hasn ’ t capitalised on financial technology in the same way ”
MARIANA HENRIQUES PRODUCT MARKETING DIRECTOR , INSURANCE , FINTECHOS
on to offer their own platforms to insurers and consumers . But , according to Mariana Henriques , Product Marketing Director , Insurance at FintechOS , legacy insurers are lagging in their relationship with fintechs and deployment of financial technology .
She notes : “ While some financial services have seen flash-in-the-pan innovations and have found success in consumer trends , insurance hasn ’ t capitalised on financial technology in the same way . One of the main challenges for insurers has been the complexity of their business models , which adds to the complexities of deploying and using the technologies themselves .”
While complex business models may slow the uptake of fintech usage among legacy insurers , Henriques believes companies will eventually “ diversify the types of insurance products they offer through embedded insurance , as awareness of the benefits of embedded insurance continues to grow among consumers ”.
Insurance diversification According to Henriques , the growing awareness of consumer pet insurance has already led to an insurer response , with embedded pet insurance becoming one of the largest segments in the sector . Breton explains how “ many pet insurance tools are now providing cards , with their own brand , letting pet parents pay for emergency operations up-front , removing the added stress of putting cash down and waiting to be reimbursed – this service is only possible with embedded finance .”
Embedded pet insurance is not the only segment of embedded insurance high on the growth chart , as the Executive Director of Toyota Insurance Services Europe , John Laing explains : “ One of the most exciting innovations in embedded insurance is insurance sold as part of a vehicle rental or purchase – whether physically at a dealership , for example , or online .”
Laing feels that embedded motor insurance is set to grow for many reasons . “ As customers move from ‘ ownership ’ to ‘ usership ’, their expectations are starting to change – with an increasing focus on ‘ ease of use ’ and ‘ value ’ that make embedded insurance products very appealing .
“ There is also a shift from selling , financing and insuring a single car to providing a combined service based around an insured , funded vehicle , instead . In addition , passenger vehicles that are designed at the outset to have insurance integrated become very appealing when supported by deeper and more varied data streams .”
The future of embedded insurance With pet and motor embedded insurance firmly on the rise , the proliferation of embedded insurance services across all industries , and at more insurance firms , look set to follow suit . As Henriques notes : “ Technology will play a key role in demystifying some of the complexity around
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