Embedded Insurance & the Rise of the Vertical Expert

When most people think about the act of buying insurance, they envision either calling an insurance professional (an agent or broker), or searching for quotes online. The purchase is done separately from what triggered it — you sign the lease on your new apartment and later go online to shop for renters insurance; a few weeks after your dog had an expensive operation, you see an ad online for pet insurance. But that is rapidly changing.

Increasingly, insurance propositions meet potential buyers at the right time and the right place, presented by a vendor they already know and trust. Such new distribution models can become incredibly effective in driving down acquisition costs and loss ratios, in a competitive industry where getting the cost structure right is paramount. This form of insurance distribution is known as embedded insurance.