Insurers are battling to attract new policyholders as costs per claim rise. McKinsey estimates show rising costs contributed to a $30 billion increase in loss costs in 2021, over and above historical loss trends. With policyholders wading through inflation and higher costs in day-to-day life, insurers must be creative and thoughtful about how to grow their business. Digital transformation offers some encouraging rays of hope.
Executive SummaryWith inflation putting pressure on policyholders and insurers, Tim Hardcastle, CEO and co-founder of INSTANDA, discusses how embedded insurance can help transform distribution and capture market share.
One innovation breathing new life into the industry is embedded insurance. With APIs (application programming interfaces) now being the norm rather than the exception, insurers have more opportunities to weave their products into third-party customer journeys. Meeting customers during the buying process allows insurers to provide a more relevant and personalized offering. With this model, startups like Jetty can offer renters insurance directly through their property manager’s platforms. Embedding policy purchase enables brands to improve customer experience while trimming distribution costs and growing market share.