Embedded Insurance: How Non-Insurers Are Taking Over Policy Management
What happens when you buy a new laptop and instantly add accident protection, or rent a car and secure rental insurance with a single click? This is embedded insurance—a seamless experience where insurance is woven directly into the purchase of another product or service. But this trend is evolving beyond simple add-ons. Today, non-insurance companies are not just selling policies; they are independently managing entire insurance portfolios, often more efficiently than traditional carriers. This shift, powered by modern technology, is redefining the competitive landscape. The story of Swisscom sure provides a compelling glimpse into this future.
From Simple Links to Strategic Ownership
For years, insurers have partnered with brands to offer embedded solutions, often through basic affiliate links limited by clunky IT systems. However, the approach is becoming profoundly more sophisticated. Non-insurance companies are transitioning from mere referrers to becoming full-fledged providers and administrators of insurance products. This is no longer a side experiment; it's a core strategic goal.
Why are brands so motivated? Embedded insurance offers a powerful remedy for shrinking margins in their primary business. The secondary benefits are equally compelling:
- Expanding product and service portfolios.
- Enhancing perceived customer value.
- Strengthening customer loyalty and retention.
- Creating a distinct competitive advantage.
To capture these benefits fully—and to retain customer ownership while reducing dependence on traditional insurers—these companies seek greater control over the entire insurance value chain.
The Technology Enabler: Insurance-as-a-Service Platforms
Gaining this control no longer requires building complex capabilities from scratch. The rise of Insurance-as-a-Service (IaaS) platforms has dramatically lowered the barriers to entry. Modern, cloud-native SaaS core systems are designed for user-friendliness, efficiency, and maximum scalability.
By partnering with specialized tech providers, product and service companies can leverage these platforms to:
- Design and launch tailored insurance products rapidly.
- Manage underwriting, policy administration, and claims processing.
- Maintain complete control over customer experience and profitability.
This model empowers brands to run their insurance operations with a level of autonomy previously reserved for insurers.
Case Study: Swisscom Sure – A Telecom Giant as an Insurance Manager
Swisscom, a leader in Swiss communications, IT, and entertainment, has launched one of the most ambitious embedded insurance initiatives to date. Through Swisscom sure, it offers a diverse range of customer-centric insurance products—from leisure and household coverage to legal protection—strategically positioned alongside its core mobile, internet, and TV services.
The most impressive aspect is the execution: Swisscom manages its entire property and casualty insurance business independently using the cloud-native EMIL Insurance Suite. This SaaS core system provides all essential functions: a product engine, quote/application processing, contract and claims management, and a partner distribution system.
The results speak for themselves:
- Speed to Market: The first policies were sold just six months after the partnership began.
- Scale & Reach: Over six million Swisscom customers now have access to this highly automated insurance offering.
- Value Chain Control: As a broker, Swisscom covers a significant portion of the insurance value chain, owning the customer relationship and experience.
Tom Buschor, Head of Insurtech B2C at Swisscom, states: "Swisscom sure is not only a new business opportunity for Swisscom but also proof of our innovative strength and commitment to our customers."
The Implication for Traditional Insurers: A Wake-Up Call
The Swisscom example is a clear signal. Technological advancements, particularly in P&C policy administration software, have significantly reduced complexity. Brands no longer need to rely on insurers' legacy systems. Instead, they partner with agile tech providers like the EMIL Group—companies built on modern stacks that offer advantages over the outdated systems of conventional insurers.
Much like Shopify democratized e-commerce, enabling anyone to sell online, modern IaaS platforms are democratizing insurance operations. They empower non-insurers to efficiently manage policies, challenging the traditional insurer's role.
This evolution raises urgent questions for established carriers: If brands can manage policies themselves, what unique value do traditional insurers provide? The answer lies in strategic adaptation. In the next part, we will explore the concrete steps insurers must take—from modernizing legacy IT to embracing a partnership mindset—to remain competitive in this new era of embedded insurance and avoid being overtaken by more agile, tech-enabled brands.
The future of insurance distribution and administration is being rewritten. The companies that thrive will be those that recognize this shift not as a threat, but as an opportunity to redefine their role in a connected, digital ecosystem.