What Is Embedded Insurance?
The way people buy insurance is evolving. Gone are the days when getting coverage meant filling out long forms, talking to agents, and waiting days for a policy to kick in. Thanks to embedded insurance, coverage is now being woven directly into the things we buy and use every day.
So what exactly is embedded insurance? In simple terms, it’s insurance that’s offered as part of another transaction. Buy a plane ticket, and you’re offered travel insurance at checkout. Rent a car, and coverage is included in the booking process. Even new phones or electronics often come with an optional protection plan you can add with a single click. It’s insurance that fits into the moment, without any extra hassle.
The Role of Insurtech Platforms
This shift is largely being powered by insurtech platforms - technology solutions that connect insurers with businesses like airlines, e-commerce sites, and ride-hailing apps. These platforms make it easy to integrate insurance offers into digital experiences, all while keeping things fast and seamless for the customer.
One notable example is Openkoda, an open-source insurtech platform that enables companies to build and deploy embedded insurance solutions rapidly. With pre-built templates and customizable components, Openkoda reduces development time by up to 60%, allowing businesses to integrate new insurance products into their services efficiently.
How Insurance Automation Makes It Work
Behind the scenes, insurance automation is what makes it all work. Underwriting, pricing, issuing policies, and even handling claims can now happen almost instantly, thanks to smart software and real-time data. Instead of waiting for approvals or digging through paperwork, everything happens in the background—automatically.
Platforms like Openkoda leverage automation to streamline these processes. For instance, their Reporting AI feature allows decision-makers to extract actionable insights from business data using natural language queries, eliminating the need for external reporting tools and manual database queries.
Why It Matters
For consumers, this means easier access to protection when they actually need it. For businesses, it’s a chance to add value for customers and unlock new revenue streams. And for insurers, it opens the door to new markets and data-driven innovation.
Looking Ahead
Embedded insurance is more than a trend. It’s a fundamental change in how insurance fits into people’s lives. With the right mix of technology, automation, and strategic partnerships, it’s poised to become the new standard for how coverage is delivered in a digital world.