In this podcast episode, Lars Markull interviews Nick Sühr, co-founder and CEO of Kasko, about the world of embedded insurance. Nick shares his expertise on how insurance products are integrated into non-insurance brands and platforms, offering valuable insights for insurers and brands looking to explore this growing market.
Introduction to Embedded Insurance
- Embedded insurance refers to offering insurance products through non-insurance brands or distributors
- Common examples include credit protection insurance with loans, travel insurance with flight bookings, and extended warranties on consumer electronics
- The embedded insurance market is growing rapidly, with potential to reach up to 25% of the property and casualty insurance market
Key Use Cases and Benefits
- E-commerce protection for expensive goods like electronics and appliances
- Travel insurance integrated with flight and accommodation bookings
- Credit card benefits and loan protection insurance
- Convenience for consumers who can easily add insurance at the point of sale
- Increased loyalty and revenue streams for brands offering embedded insurance
Building Embedded Insurance Products
- Three main partnership models: direct with insurers, through managing general agents (MGAs), or via large brokers
- Factors to consider: customer access, service, product design, pricing, underwriting, and regulatory compliance
- Technology plays a crucial role in enabling customization and integration
- Brand trust is important, but flexibility and innovation can outweigh established insurance brands
Future Outlook
- Embedded insurance is seen as a key area for organic growth in the insurance industry
- Evolution rather than revolution, with established concepts and technologies now available
- Opportunities for both fast followers and innovative players in the market
By understanding the landscape of embedded insurance, brands and insurers can tap into new revenue streams and offer enhanced value to their customers.