Meeri Savolainen, CEO of INZMO, a Berlin-based insurtech for the rental sector, is leading change in the European insurtech sector. With growth being squeezed across Europe, the insurance value chain is eyeing a significant opportunity in embedded finance, which is predicted to be valued at $770 billion for European brands by 2026. Despite the massive potential, a majority of brands lack a full understanding of embedded services, with only 5% admitting to having a grasp on the concept.
Embedded insurance is a partnership between a technology partner, such as an insurtech, and another business that allows the latter to sell insurance on their website. This approach simplifies the process as the insurtech handles the technical aspects, leaving the partner to simply integrate a few lines of code into their website. This allows for seamless integration of insurance products into non-insurance platforms, enhancing customer engagement by providing protection and peace of mind at the right moment. From usage-based insurance models to digital claims processing, the possibilities of embedded insurance are vast.
The ecosystem of embedded insurance involves collaboration between traditional insurers, insurtechs, managing general agents (MGAs), and non-insurance companies. By expanding insurers’ reach beyond traditional distribution channels, embedded insurance allows for efficient customer acquisition with minimal IT integration issues and reduced marketing spend. Insurtechs benefit from partnering with established insurers by gaining regulatory expertise and expanding their distribution network, while non-insurance companies can increase customer loyalty and generate additional revenue streams through embedded insurance.
Data plays a crucial role in the success of the embedded insurance ecosystem, enabling personalized offerings, accurate risk assessment, and improved customer experiences. By analyzing customer behavior, usage patterns, and real-time information, stakeholders can offer dynamic pricing, proactive risk intervention, and more efficient claims settlement. Collaboration among partners is essential for creating a rich data pool that can lead to operational advantages and value creation for all parties involved.
By embracing a win-win approach and fostering open communication, clearly defined roles, and transparent data sharing, stakeholders in the embedded insurance ecosystem can unlock the $770 billion value potential for European brands. The future of insurance is collaborative, and partnerships within the embedded insurance ecosystem will drive innovation, customer engagement, and financial growth. Meeri Savolainen and INZMO are at the forefront of this transformative change in the European insurtech sector, driving the evolution of the insurance value chain and enhancing the customer experience through embedded insurance solutions.
