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🌍 The Insurance Industry in Technological Transformation: Embedded Insurance Takes Center Stage
🧠 “Technology is changing everything, and the insurance industry is no exception.”
This is the opening assertion made by Yuri Poletto, founder and director of the Observatory for Open and Embedded Insurance at the 2025 InsurTech Connect Asia Conference (ITC Asia).
📲 Mr. Poletto pointed out:
“Consumers only need to register once on a digital platform to access a **‘ecosystem of products and services’**.”
📌 This means — consumers are more willing to obtain insurance through trusted companies and brands rather than directly from insurance companies.
🧩 He further explained:
“This is the concept of embedded insurance.”
- ✅ It is not just “small insurance bundled with purchased products”
- ✅ But rather a seamless integration of insurance solutions within an ecosystem or software.
💬 “In all key metrics of customer engagement, embedded insurance can surpass traditional distribution models.”
🌏 Embedded Insurance in Asia: The Path of Pioneers
💡 The Rise of Southeast Asia
👤 George Kesselman, CEO of the Asia InsurTech Association pointed out:
“Southeast Asia is a pioneer in embedded insurance.”
📦 An e-commerce platform has achieved significant penetration, sparking widespread interest from other platforms.
🧳 Related practical cases include:
- Embedded travel insurance → Addressing cancellation risks
- Various platforms are launching innovative embedded insurance products
📊 China’s “Data-Driven” Path
📌 Kesselman noted that China’s insurance market:
- Is more data-driven
- Utilizes user profiles and behavioral data to customize products
🌀 “Products may even vary by user, significantly enhancing conversion rates.”
📈 Certain categories have conversion rates reaching double digits🔻 while low matching rates result in very low conversion rates
🌐 India: A Hotbed of Digital Integration Innovation
- New models combining online and offline
- A large market with sustainable experimental capabilities
- In contrast, the Southeast Asian market remains relatively fragmented, with personalization in its early stages
🌱 From Insurance to Environmental Protection: Australia’s Ecological Embedded Case
💬 “Embedded insurance can save the world.”
—— Brent Lehmann, Head of Commercial and Affinity for WTW Australia and Oceania
🐠 Case Study: Saving the Great Barrier Reef
- The Great Barrier Reef is being eroded by starfish due to fertilizer runoff from farmland
- The government is attempting to replace it with low-nitrate chemicals
👨🌾 However, farmers are concerned about declining yields
📉 Lehmann described:
“To alleviate concerns, we collaborated with the government to analyze data to ensure that the new chemicals would not affect economic benefits.”
📈 Introducing an embedded index insurance mechanism:
- With each sale of the new chemicals, insurance coverage is automatically included
- If yields are affected by the new fertilizers, compensation can be obtained
📌 Results after two years of implementation:
✅ Farmers’ income remains stable✅ Significant ecological improvement of the Great Barrier Reef