Embedded Insurance
Embedded Insurance Nears Tipping Point
Almost exactly one year ago, we published our thought leadership article "Embedded Insurance: Major Disruptor Can Bridge Huge Coverage Gap."
We pointed out that embedded insurance isn't new and that the wide-ranging, "at point of sale" opportunity is significant. Purchasing life insurance at the airport before flight departure was a perfect example of "version 1.0" of embedded insurance. We also shared a Forrester forecast that "the embedded insurance market is expected to grow from $156.06 billion of gross written premiums in 2024 to more than $700 billion by 2029, a CAGR of 35%."
It now appears that its growth is even greater than expected.
The embedded insurance market is now forecast to reach $1.1 trillion in global gross written premiums (GWP) by 2033, representing about 15% of the total GWP.
Stephen Applebaum and Alan Demers
Research
LexisNexis Insurance Demand Meter – Trends from Q3 2025
Elevated readings dominated the88 LexisNexis® Insurance Demand Meter88 in the third quarter of 2025. Quarterly year-over-year U.S. auto policy shopping clinched another “Hot” reading on the Demand Meter and rose 6.4%, but it was down from the 9.4% increase insurers saw in Q2. New business growth remained in “Warm” territory, as it increased 2.8%, but it was down from Q2’s 3.6% increase
The 66 and older shoppers, the non-standard market and the dominance of the direct channel continued to bolster Q3’s U.S. auto policy shopping activity with the highest growth rates.
While channel-specific performance showed mixed results, the direct channel demonstrated strong growth at 14.1%. Exclusive and independent channels experienced declines compared with Q2, with exclusive channel growth sliding to -0.8%, and independent channel growth dropping to 2.8%.
Non-standard shoppers, while comprising a smaller portion of the market, helped inflate growth numbers with a quarterly year-over-year increase of 18.6% compared with their standard shopper counterparts, who grew more modestly at a rate of 5.6%.
In Q3, shopper age correlated closely with upticks in growth, with older shoppers consistently out-shopping and influencing growth more than younger cohorts (see Chart B). Consistent with recent quarters, the 66+ cohort led the pack, achieving more than 10% growth.
Each of these factors helped influence an eighth consecutive quarter of an annual shop rate that either tied with or topped the past quarter's number. In Q3, like in Q2, the market saw that 46.5% of policies-in-force were shopped at least once in the previous 12 months DOWNLOAD REPORT
Commentary/Opinion
You Think Sensors Are Ubiquitous Now...
A story about Monarch butterflies shows that sensors keep getting smaller, cheaper and more powerful--available for any use you can possibly imagine.
This week's newsletter is really just an excuse for me to share a cool story about sensors so tiny that they're being used to track the migration of hundreds of individual Monarch butterflies as they travel from Canada to winter in Mexico.
I've been banging the drum about the importance of ever-shrinking sensors since at least 2013, when Chunka Mui and I published "The New Killer Apps" and listed ubiquitous sensors as one of our six technology megatrends to exploit. I've been fascinated by Monarch butterflies since coming upon a traffic jam on a country road in Mexico in the '90s, stepping out of my car and realizing that the "leaves" on trees up the hill were actually millions of Monarch butterflies. So I just couldn't pass up this week's story of Monarchs being outfitted with sensors that include a solar panel, a battery, a radio, and an antenna--while weighing six-hundredths of a gram.
Oh, and there are plenty of implications for insurers, where ever cheaper, ever more powerful, ever smaller sensors are already enabling the move to a Predict & Prevent model and where, as the butterfly story shows, there is still loads of room for progress.
Paul Carroll, editor-in-chief, Insurance Thought Leadership
Financial Results
Nonstandard Auto Insurers Continue Profit Momentum in 2025: AM Best
The nonstandard auto insurance market in 2025 certainly looks to be maintaining the momentum it gained last year, according to a new report from AM Best.
The insurance industry rating agency said U.S. private passenger nonstandard auto insurers turned in underwriting profit of $65.2 for the first half of 2025, compared with $16.6 million during the same period a year ago.
AI in Insurance
AI Takes Center Stage: illumend to Preview Lumie, Its Conversational AI Guide, and New Procore Integration at IRMI Construction Risk Conference
At the IRMI Construction Risk Conference (CRC), illumend™, the next-generation, AI platform redefining how companies manage third-party risk and insurance compliance, will offer a sneak preview of two major technology advancements:
Lumie™, a conversational AI guide that walks third-party partners through every step of the insurance compliance process, from document review and risk flagging to communication drafting and resolution. Lumie delivers real-time intelligence and actionable next steps, turning compliance from a slow, manual task into a streamlined, insight-driven process that accelerates business outcomes and empowers users.
A new Procore integration, embedding automated insurance compliance checks and workflows directly inside Procore to eliminate manual bottlenecks and keep construction projects on schedule.
By bringing insurance compliance into the flow of work, illumend and Lumie eliminate the manual grind, reduce liability and empower teams to move projects forward faster and more confidently. The result: faster builds and a smarter, worry-free path to partnering.
Attendees can visit illumend at the NexTech Kiosk for live demos, hands-on experience with Lumie and an exclusive first look at the Procore integration in action. The illumend team will be onsite to share how applied AI is transforming construction risk management and insurance compliance.
InsurTech/M&A/Finance💰/Collaboration
Liberate and HawkSoft Partner to Empower Insurance Agencies with Agentic AI for Smarter Sales, Service, and Retention
HawkSoft announced a strategic partnership and integration with Liberate, a leader in AI automation purpose-built for the insurance industry. The partnership allows agencies to use Liberate's Voice AI to automate service, quoting, and call routing. This helps agencies close more deals, serve clients faster, and retain clients at lower operational cost.
Unlike generic call bots, Liberate's AI is designed for the insurance industry. Liberate reduces phone call burdens, enhances quoting efficiency, and elevates client experience without the need for additional staff. By combining AI, real-time system integrations, and intelligent call routing, Liberate Voice AI delivers a unified automation platform purpose-built for independent agencies, MGAs, and carriers.
Integrated Workflows That Drive Efficiency
Through the integration with HawkSoft's agency management system, agencies can now automate a wide range of front-line interactions directly from their management system, including:
- 24/7/365 inbound call automation in English and Spanish.
- Real-time identification of clients via HawkSoft data, routing them to their assigned CSR or producer.
- Compatibility with any phone system—no complex technical integration required.
- Full transcription and logging of conversations into HawkSoft for compliance and tracking.
- Reduced hold times and missed calls through instant responses to routine inquiries and more.
"We are hyper-focused on helping independent agencies adopt AI, and partnering with HawkSoft moves us closer to accomplishing that mission," said Amrish Singh, cofounder and CEO of Liberate. "This integration gives agencies a powerful way to find, convert, and retain more clients for less cost."
Rushang Shah, CMO of HawkSoft adds, "Our partnership with Liberate accelerates how independent agencies deliver service at scale. By embedding Voice AI with HawkSoft's management system, agencies can triage quick questions instantly while freeing their teams to focus on high-touch conversations—uncovering risk needs, strengthening relationships, and elevating the client experience end-to-end."
Legal System Abuse/Social Inflation
APCIA: House Judiciary Committee Must Pass Litigation Funding Disclosure Reforms
The American Property Casualty Insurance Association (APCIA) continues to throw support behind two bills schedule for markup today by the House Judiciary Committee.
Committee member Rep. Darell Issa, R-Calif., in February introduced the Litigation Transparency Act of 2025 (HR 1109) that would require disclosure of third-party litigation funding (TPLF) in federal civil cases.
Also, the Protecting Our Courts from Foreign Manipulation Act of 2025 (HR 2675) was introduced in April by Rep. Ben Cline, R-Va. It would require disclosure of TPLF by foreign persons and prohibit foreign governments and sovereign wealth funds from investing in federal court litigation.
NICB Warns of Fraud Facilitated by Third-Party Litigation Funding, Calls for Transparency and Insurance Industry Vigilance
New analysis conducted by the National Insurance Crime Bureau (NICB) and 4WARN has uncovered a strong connection between third-party litigation funding (TPLF) and excessive litigation instigated by fraudulent digital tactics.
The activity undermines the insurance industry, causes premiums to rise, and puts unfair strain on policyholders. In one case, a single funder supported 13 law firms that unethically targeted 66 different insurers to drive claims litigation and maximize the investor's return.
NICB is the nation's premier non-profit organization dedicated to combating insurance crime and fraud, and 4WARN is a digital risk intelligence company. The partners assessed 783 insurance companies from June through August 2025, determining that three in four had been directly targeted by opportunistic litigation-related marketing campaigns backed by third-party litigation funders. The assessment documents ways that TPLF can facilitate or encourage fraudulent insurance claims and unethically drive litigation volume that fails to help policyholders.
TPLF involves outside investors and entities – including both domestic and foreign sources - providing financial resources for claimants and/or law firms in exchange for a portion of any settlement. In some cases, the outside investor may influence case selection, litigation strategy, and settlement posture to maximize return on investment. At its worst, TPLF-facilitated fraud involves outside investors secretly funding litigation that is based entirely on exaggerated, fraudulent, and even fictitious insurance claims.
Since NICB's direct assistance in investigating the United States v. Constantine case—a $31 million trip-and-fall insurance fraud scheme facilitated by TPLF that preyed upon the poor and homeless—NICB has documented the influence of outside funding on driving claims and insurance litigation. Coordinated networks of unethical lawyers and medical providers facilitate these fraud schemes, which are often exacerbated through digital marketing tactics to drive mass litigation.
"The sheer scope and impact of outside funding in driving insurance claims litigation is even greater than previously suspected," said NICB President and Chief Executive Officer David J. Glawe. "Excessive litigation and insurance fraud schemes facilitated by third-party litigation funding continue to evolve with more funding pouring in and further aggressive targeting and manipulation of unsuspecting consumers."
Consumers Agree Legal System Abuse Drives Up Insurance Costs, Prompting Demand for Reform
As insurance lawsuits hit record levels, a new survey of consumers from the Big “I” reveals growing concern that excessive and abusive litigation is driving up costs for consumers and reforms are needed.
According to the survey, 64.3% of respondents said they were concerned about how excessive lawsuits increase their premiums, and 80.5% believe that the legal system is used in ways that unfairly drive up insurance costs. Overwhelmingly, 8 in 10 (80.3%) respondents also believed that their premiums would increase due to excessive lawsuits, even if they had never filed a claim themselves.
“Consumers are absolutely correct. They are paying the price for unnecessary lawsuits in the form of higher insurance costs for their households,” said Charles Symington, Big “I” president & CEO. “The survey makes it clear: Americans want reform and accountability. Independent agents are working with their customers so they further understand the impact of lawsuit abuse and how to advocate for reform.”
Consumers also expressed skepticism about who truly benefits from lawsuits against insurers. Nearly three-quarters (73%) said attorneys and law firms profit most, compared to only 30.9% who believe consumers with valid claims benefit.FULL ARTICLE
Announcements
OEC and Collision Engineering partner to enhance collision repair education | Repairer Driven News
The Collision Engineering Career Alliance (Collision Engineering) and OEConnection (OEC) have formed a strategic partnership to enhance collision repair education and workforce development across U.S. partner colleges, a press release says.
The partnership provides RepairLogic licenses and training for designated Collision Engineering partner colleges, the release says. It adds that this represents an annual multi-figure investment in technology and personnel support by OEC.
“OEC is a valued partner of the Collision Engineering program, and we’re excited about how access to their best-in-class platform will enhance our curriculum and student success,” said Mary Mahoney, vice president for Enterprise Mobility and chair of the Collision Engineering Career Alliance board, in a press release.
“Working together is key to developing the next generation of collision repair professionals. Partnering with OEC allows us to better prepare students for the workforce with greater access to cutting-edge industry tools.”
{MORE](https://www.repairerdrivennews.com/2025/11/18/oec-and-collision-engineering-partner-to-enhance-collision-repair-education/)
Geico Unveils a Verby New Slogan
As its 17 million policyholders know, Geico is an auto insurance company with a gecko spokesman. As financial analysts know, Geico is among the top three car insurers in the country by market share.
And, as of today—grammar fans, prepare yourselves—Geico is now a verb, too.
“It feels good to Geico” is the carrier’s new slogan, taking the place of “Real service, real savings,” rolled out in 2020. But what does it mean to Geico, exactly?
It means getting that warm and fuzzy feeling when a huge corporation actually pays attention to you—or so four new spots from the Martin Agency suggest.
Two of the 30-second ads feature famous athletes: Philadelphia Eagles wide receiver A.J. Brown and Dallas Cowboys’ retired running back Emmitt Smith. Using the presumption that star athletes always get better treatment than the rest of us, Geico’s narrator swoops in with the kicker: “You’re not AJ Brown [or Emmitt Smith], but we’ll treat you like him. It feels good to get the star treatment. It feels good to Geico.”
Awards
Hi Marley Ranked Number 244 Fastest-Growing Company in North America on the 2025 Deloitte Technology Fast 500(TM)
Attributes 325 Percent Revenue Growth to Hi Marley's Insurance-Focused Mission and Staff
Hi Marley, creators of the only intelligent conversational platform built for the P&C insurance industry, today announced it ranked number 244 on the Deloitte Technology Fast 500™, a ranking of the 500 fastest-growing technology, media, telecommunications, life sciences, fintech, and energy tech companies in North America, now in its 31st year.
Hi Marley grew 325 percent during this period.