The article discusses the trend of "embedded insurance" and its growing popularity among investors. Embedded insurance refers to the integration of insurance products into other industries or services, such as fintech, e-commerce, or healthtech. The concept has gained significant attention in recent years, with many startups and established companies exploring ways to offer insurance products in conjunction with their core offerings.
Investors are enthusiastic about embedded insurance due to its potential for growth and scalability. According to the article, the sector has already attracted millions of dollars in investor money, and it is expected to continue attracting funding as more value is unlocked across various markets.
The article highlights several key points:
- Embedded insurance can be applied to many verticals: Beyond cars and gig economy, embedded insurance can be applied to other industries such as recruitment, mass retail, or even e-commerce.
- Investors remain enthusiastic despite market conditions: Despite the public market selloff and worsened macroeconomic conditions, investors continue to show interest in embedded insurance, viewing it as a long-term trend.
- Insurtechs must meet expectations for revenue generation: Insurtech companies need to demonstrate revenue growth to justify investor enthusiasm and maintain funding momentum.
- Embedded insurance may lead to M&A activity: As the industry grows, non-traditional companies may enter the acquisition arena, potentially leading to mergers and acquisitions in the space.
Some notable quotes from the article include:
- "I think embedded insurance is still a hot market for investors right now" – Clarisse Lam, associate at New Alpha Asset Management
- "More attention must be paid to the ‘why’ (i.e., is it an organic extension of the embedded partner’s offering?), the ‘what’ (i.e., is it the right insurance product at the right price?) and the ‘when’ (i.e., is now the time the consumer wants to shop?)" – Hélène Blumencranz, Distributed Ventures
Overall, the article suggests that embedded insurance is a rapidly evolving space with significant potential for growth and innovation.