Original text here from Patrice Bernard (LinkedIn)
In a move that's still rare on a large scale in the insurance sector, the British group Admiral, through its exploratory division Pioneer, is launching a comprehensive suite of embedded services for businesses looking to provide their customers with insurance coverage in addition to the products they sell.
The concept of "embedded insurance" isn't exactly new and is more commonly seen in AssurTech disruptors rather than in established institutions. In line with industry standards, Connect by Admiral, as it's named, enables users such as online retailers to incorporate its insurance products via standard programmatic interfaces (APIs), ensuring a seamless and transparent experience while including protection for purchases made.
Wagonex, a creator of a subscription-based mobility marketplace in the UK, is among the first to adopt this concept. It enhances its offering with an all-inclusive long-term car rental solution that now adds insurance to the car rental, taxes, maintenance, assistance, and more already included in the package. This integration not only simplifies the transaction for buyers and consolidates their monthly payments into a single bill, but it also offers them clearer visibility on the total cost of their vehicle.
What sets Admiral's service model apart is its readiness to be applied across its entire product range, including in areas where it's rarely considered today, such as automotive, homeowners and renters insurance, pet insurance, travel, events, electronics and gadgets, and business insurance. However, these policies are not immediately available, partly because they need to be customized according to the specific needs of the requester.
For implementation, Admiral has chosen to collaborate with Root, a South African startup that pivoted from an initial concept of a programmable bank to now offering a platform for end-to-end insurance product design and development, requiring minimal coding, and accessible via APIs. This technology enables them to quickly adapt to the varied needs of potential clients.
Of course, Admiral's strategic approach of separating this new, service-oriented paradigm from its "traditional" functions (similar to what Westpac is attempting, albeit with difficulty, in banking) raises many questions. While expertise is shared, inevitable redundancies may emerge, potentially hindering overall efficiency. Is a convergence towards the more flexible solution conceivable in the medium term? Regardless, Connect by Admiral marks a significant step towards the insurance of the future.
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