" class="no-js "lang="en-US"> From Underwriting to AI: The Tech Making Insurance Disappear
Wednesday, April 17, 2024

From Underwriting to AI: The Tech Making Insurance Disappear

Megan Bingham-Walker, CEO and Co-Founder of Anansi

If you haven’t been living under a rock (and if you are, I’d strongly suggest getting insurance for it), you’re undoubtedly familiar with the term ’embedded insurance’. But what does it truly mean for insurance to be “embedded”, and how is technology, especially AI, reshaping the way we think about and interact with insurance? As the Co-Founder & CEO of Anansi, I’ve been at the forefront of this transformation, and I’m pleased to report that insurance is slowly disappearing from sight (in a good way, of course).

The Invisible Protector: Embedded Insurance in Action

Have you ever booked a flight and, just before checking out, been offered flight insurance? That’s embedded insurance in action. However, what if this concept could be expanded beyond plane tickets?

Imagine a world where insurance is always there, right when you need it, but without the cumbersome process of seeking it out. Ideally, the embedded insurance experience is one where insurance is placed precisely at the point of need. No more lengthy forms or convoluted processes. Instead, the insurance buying experience becomes relevant, straightforward, and, most importantly, invisible.

But how do we achieve this invisibility? And what role does technology play in this transformation?

“AI, in particular, has been a game-changer. From automating customer service with chatbots to handling high volumes of claims, AI is at the forefront of this revolution”

Making Insurance Seamless for 3PLs and E-commerce Platforms

It’s no secret that the insurance industry thrives on data. With the explosion of structured data and the vast processing power available in the cloud, insurance is now primed to operate silently in the background. Think of it as the silent guardian, always watching, always ready, but never obtrusive.

AI, in particular, has been a game-changer. From automating customer service with chatbots to handling high volumes of claims, AI is at the forefront of this revolution. It’s not just about automation though; the real magic happens when we can seamlessly integrate insurance into other platforms and services. That’s where APIs come into play.

For our partners, like 3PLs and e-commerce platforms, this means a seamless experience. With API’s, like the one offered by Anansi, you can integrate directly into your warehouse, order, or inventory management system. This not only reduces customer inquiries but also adds a new revenue stream to your business. For Shopify merchants, integrated insurance apps ensure that you’re protected from shipping mishaps with automated claims and fast reimbursements.

Broadening Horizons and Building Trust

While sectors like automotive, travel, and electronics have been early adopters of embedded insurance, the potential applications are vast. From SME insurance to cyber risk coverage, the future looks promising. However, with this invisibility comes a crucial question: How does this impact consumer trust?

Interestingly, embedded insurance can enhance trust in multiple ways. Associating insurance with a successful brand, ensuring relevance, and providing a delightful user journey all play a part. However, the true test of trust comes during claims. After all, isn’t that the real shop window for insurance?

So, where are we headed? Will there come a day when all insurance operates silently in the background? While there’s significant growth potential, some risks might always require a traditional touch, especially where data is limited or hard to access.

A New Era for Traditional Insurers

The insurance landscape is undergoing a seismic shift with the rise of embedded insurance, integrating insurance seamlessly into products or services. For traditional insurers, this evolution brings a mix of challenges and opportunities, with digital transformation at the forefront.

The move from legacy systems to modern, electronic platforms is a monumental task. The digitisation of insurance products is not just about technology; it’s about reimagining the entire insurance experience. A decade ago, structured data sets essential for traditional insurance decisions were limited. Today, as the industry undergoes a digital metamorphosis, this data is becoming increasingly accessible, acting as a catalyst for the embedded insurance concept.

However, the journey to digital transformation isn’t one that traditional insurers need to undertake alone. There’s a silver lining in the form of partnerships and, by collaborating with insurtechs, which are inherently designed for embedded experiences from their inception, traditional insurers can navigate the complexities of this transition more smoothly. These partnerships not only offer technological solutions but also bring fresh perspectives, allowing traditional insurers to integrate embedded insurance seamlessly.

In essence, while the industry is rapidly evolving towards a more integrated model, there will always be a niche for the traditional insurance touch. It’s a balance between leveraging technology for efficiency and recognising the value of human judgement in nuanced situations.

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