Open and Embedded Insurance 2024: The Future of Insurance Growth and Distribution

A new report by the Open and Embedded Insurance Observatory provides an in-depth look at how open and embedded insurance is poised to transform insurance distribution and solve the industry’s long-standing growth challenges. 

The report combines extensive market data, academic research, and case studies to illuminate the key trends shaping this burgeoning field.

Key insights include:

• Insurance has a growth problem, with net premium growth averaging only 0.25% annually over the last decade in major Western markets. Cross-selling and retention alone are not sufficient growth drivers.
• Embedded insurance enables insurers to reach and acquire new customers at scale by integrating insurance offers into the digital customer journeys of non-insurance brands and platforms. This “Business-to-Partner-to-Consumer” (B2P2C) model could comprise up to 15% of global premiums within 10 years.
• Insurers are investing in dedicated platforms and capabilities to power embedded insurance partnerships. Meanwhile, an increasing number of digital brands are adopting embedded insurance to generate new revenue streams and enhance their value proposition.
• While personal lines and affinity partnerships currently dominate embedded insurance, commercial lines for small businesses represent a major untapped growth opportunity. Digital platforms and vertical SaaS companies catering to SMEs provide ideal environments to embed tailored insurance offers.
• Insurers aren’t just pursuing sales growth, but are strategically leveraging data-sharing with distribution partners to improve risk selection and develop innovative products for new markets and customer segments.
• Generative AI, APIs, and no-code tools are enabling more seamless and scalable integrations to embed insurance across a wider ecosystem of partners and platforms.

To learn more about how your organisation can capture the full growth potential of open and embedded insurance, download the complete 120-page report at https://openinsuranceobs.com/reports/report-open-embedded-insurance-report-2024/. The report includes actionable frameworks, case studies from pioneers like Tesla and BMW, and a comprehensive overview of the key players and technologies shaping the future of insurance distribution.