Embedded Insurance
Embedding Insurance in Digital Platforms and Marketplaces: A Comprehensive Analysis
I lead the Open and Embedded Insurance Observatory, a global community of insurance and non-insurance brands involved in embedded insurance and open insurance.
🚀 The $1.03 Trillion Opportunity: Why Embedded Insurance is the Future of Digital Commerce 🛒
The digital economy is experiencing unprecedented growth, with 59% of global online sales expected to be made via digital marketplaces by 2027. Yet beneath this remarkable expansion lies a critical vulnerability: the platform and marketplace economy is both underinsured and underutilizing digital insurance technology. This represents not just a risk, but the largest untapped opportunity in modern insurance—a projected $1.03 trillion market by 2029.
The transformation from traditional economies of scope to network effects fundamentally changes how insurance creates value. In traditional B2B2C models, success comes from optimizing shared platforms and distribution channels to reduce costs. But in the platform economy, value creation follows the network effect logic—the more users and services a platform adds, the more attractive it becomes to all participants.
This shift demands a complete reimagining of insurance distribution. Consider that 100% of platforms and marketplaces we surveyed said the impact of embedding insurance offerings into their ecosystem had been "positive" or a "game changer." These aren't incremental improvements—they're business transformation stories.
The data reveals the magnitude of the opportunity: 72% of platforms and marketplaces will offer some kind of protection and insurance services to their retail customers, while 32% will serve business users. With 87% of micro, small, and medium enterprises expected to use digital platforms within five years, and 13% open to purchasing embedded insurance, we're looking at a fundamental restructuring of how protection is distributed and consumed.
♟️ The Strategic Imperative
For insurers, this isn't about adapting existing products—it's about developing entirely new capabilities. API-driven integration, data utilization and analytics, product customization and flexibility, seamless user experience design, and regulatory compliance across multiple jurisdictions become table stakes. The insurers who recognize this imperative and act decisively will lead the industry into its next growth phase.
The window for first-mover advantage remains open, but it's closing rapidly. As platforms increasingly expect insurance partners who can deliver embedded solutions at the point of need, traditional insurers must evolve or risk displacement by more agile competitors who understand the platform economy's unique demands.
Yuri Poletto, Open and Embedded Insurance Observatory
Telematics, Driving & Insurance
IIHS Top Safety Pick+ Winners Must Have Anti-Speeding Tech By 2027 — And DUI Detection By 2030
Time will tell if automakers decide to produce new vehicles with these features in order to receive meet IIHS Top Safety Pick+ requirements.
The Insurance Institute for Highway Safety, or IIHS, is an independent non-profit scientific organization that evaluates the safety of most cars and trucks on sale today. Its mission is to reduce deaths, injuries, and property damage from motor vehicle crashes through research and evaluation, and through public education. Its crash tests and other vehicle safety tests are more rigorous, wide-reaching, and comprehensive than those of the National Highway Traffic Administration, which is part of the United States Department of Transportation.
The organization has continuously implemented new, more rigorous tests and safety standards to evaluate and rate the safety of new cars through its ranking system, and it awards the vehicles that perform best in its wide array of tests with Top Safety Pick+ awards. Automakers are not required to conform to IIHS guidelines, but most have chosen to produce new vehicles that are designed to perform better in IIHS tests, and the Top Safety Pick+ has become a coveted achievement that appeals to consumers.
IIHS announced on Tuesday that it will further strengthen the qualifications for this award in 2027 by requiring Top Safety Pick+ winners to have an intelligent speed assistance (ISA) device that detects when drivers exceed the speed limit and issues warnings. It is also planning to require award winners to have impairment detection devices by 2030 or sooner, which will monitor driver intoxication and impairment and prevent anyone with a blood alcohol concentration (BAC) of 0.08% or higher from driving. Time will tell if automakers decide to produce new vehicles with these features in order to receive meet IIHS Top Safety Pick+ requirements.
InsurTech/M&A/Finance💰/Collaboration
Insurtech platform The Spark debuts at Monte Carlo | Reinsurance Business
"World's first global prevention lab" launches with support from major insurers
The Spark, an insurtech platform describing itself as "the world's first global prevention lab," has launched with support from major insurers and brokers.
The platform was introduced at the Rendez-Vous in Monte Carlo, with Aon as a founding member, joined by Generali and QBE Ventures. The Spark said that additional global insurers are in advanced stages of joining the initiative.
The Spark aims to move the insurance industry from a reactive model focused on paying claims to a preventive approach that seeks to "bend the loss curve" and convert risk into profitable growth. The platform has issued an open invitation to insurance companies worldwide to participate in its prevention-focused efforts.
"The insurance industry has reached a turning point," said Gil Arazi (pictured above), founder and chairman of The Spark. "For too long, we've focused on paying claims after losses occur, yet as an industry that touches every policyholder's life, we have a responsibility to drive meaningful impact beyond claims payment."
Arazi added that The Spark is bringing together major insurers to develop tools and technologies that prevent losses, aiming to create business infrastructure that supports prevention as both financially viable and socially impactful for insurers.
Allianz X backs Coterie Insurance
Allianz X, the strategic investment arm of the Allianz Group, announced a strategic equity investment in small business insurance startup Coterie Insurance. Excluding this investment, Coterie raised nearly $100 million.
In addition to Allianz X leading Coterie’s Series C investment, the deal also involves leveraging the strengths of the Allianz Group to forge a long-term, expanded reinsurance relationship between Coterie and Allianz Reinsurance, the reinsurance arm of the Allianz Group.
“Coterie has an exceptional platform for the SMB insurance market, a segment that is both attractive and challenging. This deal demonstrates Allianz X’s ongoing commitment to the segment and the opportunities within it, as well as marking the beginning of the next phase of Coterie’s growth, which we will achieve together by leveraging our respective strengths.” – Alexander De Kegel, CIO and MD of Allianz X North America.
Announcements
Jewelers Mutual launches Shopify shipping app
Jewelers Mutual has launched the JM Shipping Solution app for Shopify stores, giving jewelry retailers a way to simplify fulfillment and protect shipments. The app integrates directly with Shopify to provide real-time shipping rates, shipment insurance, and label printing from the dashboard, while automatically syncing orders for easier management.
The app, powered by Zing Marketplace, is available at no cost to Shopify users with a free Zing account.
“With this new Shopify integration, we’re making shipping easier and more secure for businesses of all sizes. From real-time rates at checkout to shipment insurance and label printing directly from the dashboard, our goal is to save time and add peace of mind for jewelry retailers and their customers alike.” – Mike Alexander, President at Jewelers Mutual.
Sapiens Launches Enhanced CoreSuite for P&C with Upgrades to Claims, Billing, and Underwriting
Sapiens International Corporation, (NASDAQ: SPNS) (TASE: SPNS), a global leader in intelligent SaaS-based software solutions, today announced the launch of its latest version of Sapiens CoreSuite for Property & Casualty for the North American insurance market. Version 13.0 is a critical component of Sapiens Insurance Platform, a future-proof, AI-based, open and integrated platform. The release, which is available to all North American CoreSuite for P&C customers, expands the robust core business capabilities for both underwriting and claims.
Significant performance, integration, and usability enhancements across ClaimsPro, BillingPro, and PolicyPro solutions significantly improve operational inefficiencies, increase speed and accuracy, and optimize the user experience.
"Our North American P&C clients requested assistance in dealing with some of their biggest challenges: the lack of visibility into underwriting, integration cost and complexity, and the need for smarter risk evaluation," said Roni Al-Dor, Sapiens President and CEO. "Sapiens acted quickly to enable smarter and more accurate underwriting, a cost reduction in integration infrastructure, and faster claims and billing operations. Our long-term strategy is to leverage corporate investments in support of our customers, as reflected in this new version."
A strategic technology upgrade in claims improves integration flexibility and helps manage operational costs, while maintaining robust performance. Billing capabilities have been enhanced through streamlined payable statement creation and a new policy filter, resulting in faster navigation and processing for carriers.
Weather Protection at Agents' Fingertips: Vortex Partners with First Connect
Vortex Weather Insurance is partnering with First Connect to make accessing Vortex's parametric weather policies easier than ever for insurance agents and brokers.
Joining First Connect, a digital marketplace that helps independent insurance agents rapidly connect with a wide range of insurance carriers, places Vortex's insurance options at the fingertips of tens of thousands of independent insurance agents, significantly broadening Vortex's reach in the marketplace.
"We're excited to make Vortex's hourly rainfall and annual hurricane products available to agents through the First Connect platform," said Andy Klaus, VP of Business Development at Vortex. "Parametric weather policies add an extra layer of protection to outdoor events and businesses, and we want them to be as easy as possible for agents to access."
Vortex becomes one of more than 130 insurance carriers featured on First Connect across the home, auto, commercial, and life sectors.
"Parametric weather insurance is a little different from traditional insurance in that it pays out once the policy thresholds are met with no need to prove damage," Klaus said. "Being on a platform like First Connect raises our visibility among agents, who can then provide the best possible options to their customers."
Vortex's product offerings include hourly rain insurance for outdoor events and supplemental hurricane insurance for businesses along the Gulf and Atlantic coasts. The quote to bind process is very straightforward and can be completed in minutes. Claims are triggered automatically, with no proof of loss or adjusters necessary. Rain claim checks are typically mailed in about 7 days, while hurricane claim checks take about 30 days. Brokers and agents can take advantage of these products for their existing clients and can gain the ability to enter new markets as well.
Origami Risk Launches AI-Powered Solution to Enhance Development of Advanced Risk and Insurance Initiatives | Morningstar
Origami Risk Launches AI-Powered Solution to Enhance Development of Advanced Risk and Insurance Initiatives
Tech Firm’s Latest Offering Among Several AI Innovations Launched in 2025
Origami Risk, the industry-leading risk, safety and insurance Software as a Service (SaaS) technology firm, today announced the launch of a new solution driven by artificial intelligence (AI) that empowers risk managers to rapidly create or expand risk registers for governance, risk and compliance (GRC) and enterprise risk management (ERM) initiatives.
Origami Risk’s new AI Risk and Control Explorer automatically generates lists of enterprise exposures based on inputs of key information such as industry, employee count, and geographic location. The output enhances the ability of risk management teams to build or scale ERM and compliance programs, as well as to design and implement internal controls.
“In their efforts to identify and prioritize enterprise exposures, risk executives and business leaders may overlook ‘unknown unknowns’ or lack sufficient insights into their assumptions, which may leave their organizations vulnerable to unanticipated or untreated threats,” said Ryan Cantor, Chief Product and Technology Officer at Origami Risk. “By leveraging our new AI Risk and Control Explorer, risk teams can quickly identify a range of relevant risks and recommended controls, including those they may not have contemplated, and apply them with a single click. This not only further protects their organizations, but does so in a fraction of the time it would have taken otherwise.”
Subrogation
Celent Study: Subrogation’s Untapped Potential for Carriers | Insurance Innovation Reporter
Celent research highlights an bottom-line opportunity for carriers for efficiency gains and customer impact, with AI a likely technology ally in success.
North American property/casualty carriers face rising claims costs, catastrophic weather events, and regulatory scrutiny. Rate hikes and market withdrawals have become common responses, but those strategies are unsustainable. As Nate Golia, Senior Analyst, Celent, and author of the study, comments,
“You can’t exclude your way into being a profitable sector.”
Shrinking market presence may reduce exposure, but it leaves risks in place and customers underserved.
Subrogation offers a different path, a kind of “low-hanging fruit” opportunity for those who seize it. By recovering costs from at-fault carriers, insurers can normalize revenue without shifting the burden to policyholders. Yet, despite billions at stake, subrogation remains an underfunded, largely manual function.
Nate Golia, Senior Analyst, Celent, and author of the study
Cyber Risk
Your Invisible Neighbors and You | Insurance Thought Leadership
Cyber risks hide in invisible digital neighborhoods, but breakthrough analytics now reveal organizational vulnerabilities across complex network connections.
The idea of property and a neighbor is easy.
The idea of digital and cyber and a neighbor is hard.
The first set is visible. The second is invisible. One exists in real space. One is ethereal.
Property - it’s houses, cars, trucks, machines, buildings, businesses, infrastructure, products, and more. Real things with real people and real-world locations - a very physical world with names, addresses, and contact information. Things you can see. Things you can touch. Very relatable parts of any real neighborhood things. (Save intellectual property for another time).
Digital and cyber are not that. They exist in an e-world where everything is e-real.
Every memory storage location and every processing chip can be thought of as having their own names, addresses, and contact information, but only in an e-real way. On the internet, there are IP addresses. The physical device could literally be anywhere, but in compute logic, it’s all just a bunch of slashes and dots away from any other device any-e-where as one address can route and link to others.
Marty Ellingsworth is president of Salt Creek Analytics. He was previously executive managing director of global insurance intelligence at J.D. Power.
Awards
Fortune and Great Place To Work Name Cambridge Mobile Telematics to the 2025 Best Workplaces in Technology List, Ranking No. 14 among Small and Medium Companies
CMT recognized for advancing road safety and creating an environment where technologists thrive
Fortune magazine and Great Place To Work® have named Cambridge Mobile Telematics (CMT), the world’s largest telematics service provider, to the 2025 Fortune Best Workplaces in Technology™ list, debuting at No. 14 among small and medium companies. This honor recognizes CMT’s unique combination of life-saving technology and a culture that gives technologists the freedom, resources, and support to do their best work.
CMT’s AI-driven telematics platform, DriveWell Fusion®, powers more than 130 mobility programs around the world and has protected over 55 million people. By harnessing sensor data from smartphones, IoT devices, connected vehicles, and third-party devices, the platform delivers real-time insights that reduce risk, detect crashes, and save lives. To date, CMT’s technology has helped prevent more than 100,000 crashes worldwide.
“Technology is the heart of CMT. From day one, we built an environment where engineers, data scientists, and product leaders can push the boundaries of what’s possible,” said William V. Powers, Co-Founder and CEO of Cambridge Mobile Telematics.
“Whether it’s our AI models that analyze road risk and detect crashes across the globe, or the DriveWell Tag, which our hardware engineers designed and scaled into a global IoT platform, our teams are tackling some of the hardest problems in technology. This recognition from Fortune and Great Place To Work reflects our drive to create the next generation of mobility and save lives on the road.”
People
Gary Tolman appointed Chairman of Just Insure
Just Insure announced that Gary Tolman has been appointed Chairman of the Board of Directors of SF Insuretech Inc., the parent company of Just Insure Inc.
Tolman brings more than 40 years of leadership at the highest levels of the property & casualty insurance industry.
He served as President & CEO of Esurance , scaling it into one of the most recognized digital-first insurers and leading it through its sale to Allstate in 2011. More recently he founded and led Noblr, a telematics innovator acquired by USAA in 2021.
In addition, he has advised and served on the boards of numerous startups and financial services firms, helping drive growth and innovation across the sector.
“We’re enormously excited to have Gary join the team. He is probably the most successful insurance entrepreneur of the last 30 years, and he brings a wealth of experience. He’s going to be a core part of the team helping us grow from two states to a dozen in the next three years.” – Founder and CEO, Robert Smithson.
“I’ve been deeply impressed by Just Insure’s innovative telematics approach, which has already delivered industry-leading low loss ratios and rapid customer growth. The company’s trajectory, combined with its strategic expansion plans, positions it for remarkable growth and to become a multi-billion-dollar force in the personal auto insurance market. I look forward to contributing at this pivotal moment in their journey.” – Gary Tolman.
Just Insure was founded in 2019 and launched in Arizona in 2020, with Nevada added this year. It expects to surpass $20 million in annual premium by year-end.