POL I CY The Israeli Insurance, Pension & Finance Newspaper 40 Special edition 2022 Will embedded insurance bring about greater change than the autonomous car? embedded insurance to reach more customers with less effort and lower distribution costs. At the same time, they have access to a huge database that allows them to support the risk assessment process and build innovative and personal insurance products for the customer. Thirdparty companies, which embed the insurance component in their digital platform, have the advantage of being able to significantly improve customer value propositions, thus setting themselves apart, attracting or retaining users, and, of course, developing new revenue streams. Who are the same third-party partners in the deal? Companies that provide digital services or software as a service (SaaS) have good potential to embed insurance into their platforms. This is because they have three essential components that enable the existence of such insurance: a broad customer base, a direct relationship with the end customer, and access to data. In addition, huge players, such as Apple, Google and Alibaba, have the potential to capture major shares in the embedded insurance market. Amazon, for example, in partnership with the New York-based broker company Marsh, is already offering small businesses operating on its platform warranty coverage for the products they sell. During a recent conversation with senior executives from the European car insurance industry, one of them told me that although consumers need, or rather must, have insurance, they are not always interested in the journey to purchase traditional insurance, mainly because of their dissatisfaction with the customer experience. So, while embedded insurance may not solve the insurance-defence-gap dilemma, it can certainly contribute to reducing it by addressing many of the challenges involved, such as upgrading the customer experience, and serving as a catalyst for accelerating change in the insurance industry. And what about the future? There are those who already claim that inthenextdecade, theassimilated insurance industry will bring about greater consumer and social change than even the autonomous car. And in the long run, I look forward to the moment when even digital assets, such as the reputation of a company or person, or virtual currencies will also be insured through embedded insurance. Continued from page 24 Jonathan Marcus Translations Hebrew-English-Hebrew translation of Insurance and financial documents Insurance policies▪Appraisals and loss adjusters reports Proposalss▪Financial statements 25 years of professional experience in the insurance sector Phone: 972-54-4757622 ▪ Fax: 972-2-5616099 ▪ E-mail: jmtargum@gmail.com
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