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2023 Outlook: Business Insurance Is Going Digital and Embedded. Are You Ready?



In a post-pandemic landscape, business consumers expect the same easy shopping and purchasing transactions they’ve become accustomed to in their personal lives. How we interact in the business to business (B2B) marketplace, including affinity groups, must evolve, and the business consumer is in the driver’s seat. The convenience and transparency of digital purchasing and intuitive online customer journeys for commercial businesses is no longer a great-to-have but an expectation for many and quickly becoming a competitive advantage in the insurance market.

US commercial insurance is a $359.6 billion per year industry[1] that has long thrived on the existence of a relationship between consumer and broker. This relationship has guided clients through the sometimes-complicated buying process and been their point of contact for accessing and managing their coverage.

But, with only 30% of the entire insurance market digitized, and nearly all of that in the personal lines space, the commercial insurance consumer of 2023 is asking for something more. They want what they’re already experiencing across industries during every purchasing journey — they want business insurance to go digital and convenient.

In fact, organizations that embrace this shift and invest in management practices related to digital strategy, capabilities, culture and organization outperform their peers.[2] In doing so, the speed to market will be key as digital solutions are implemented such as embedded commercial insurance, an online insurance buying experience that is embedded on a business to business company’s website, often combining the purchase of commercial insurance with another service or product transaction.

Embedded commercial insurance is a prime example of how the market is shifting its services to the business consumer. As the market has become more saturated with non-insurance products and options, information has become more available, and buyers have become more sophisticated. To stand out, commercial insurance providers and B2Bs need to align their offerings with this recent evolution in the business consumer’s buying expectation and meet their consumers’ immediate needs.

3 embedded insurance trends to watch in 2023

Driven by business consumers, these three trends will see an acceleration in activity and dominate insurance industry headlines in 2023.

  1. Commercial insurance is going digital and embedded. Digital self-service options were already on the rise for everything from personal consumer goods to insurance before the pandemic. Now, as people have grown more accustomed to shopping with one click of a button, the insurance self-service market’s compound annual growth rate is expected to increase by almost 21% through 2029.[3] While historically commercial insurance providers have found security and success in keeping their data and underwriting processes offline, going digital is showing potential for greater profitability through process efficiency, improved risk selection, reduced costs, better fraud detection and higher customer satisfaction and retention. For example, automation can reduce the cost of a customer journey by up to 30%[2] while the data and analysis available through digital technology can allow providers to offer more tailored products. The emergence of digital insurance purchasing capabilities has expanded what business consumers expect from insurance providers and other businesses, and these non-traditional distribution and purchasing routes will only continue to grow in popularity, even for commercial insurance purchasing, which has been slower to change. Carriers have started to work with insurtechs who will need to open up digital buying options to meet evolving business consumer demands. Carriers, MGAs, and wholesalers have begun to realize that embedded distribution of commercial insurance through proven insurtech partners is available. As they experience reduced acquisition and underwriting expenses as well as loss cost outlay from embedded insurance that matches risk to carrier appetite, carriers, MGAs and wholesalers will increasingly adopt reliable embedded insurance solutions.

  2. Customer service trumps all. The digitization of insurance is all about convenience. Business consumers expect to be met where they are — which is online — and be provided quick and easy ways to get what they want, demonstrated by 81% of consumers saying they want more self-service options.[4] This same report found a significant connection between meeting customer expectations and brand loyalty, with online self-service and easy access to their preferred channels as the top customer service factors in their brand loyalty decisions. Embedded, online commercial insurance purchasing enables speed to market not seen in traditional underwriting methods, empowering the business customer to make real-time changes and decisions. In fact, the self-service model is not just about getting insurance faster but the ability to access claims, certificates of insurance (COIs) and other documentation with ease. Business consumers have no time to waste, and embedded insurance gives them what they need quickly, delivering on expectations and letting them get on with operating their business.

  3. Transparency will take center stage. Digital transformation of commercial insurance lays the foundation for businesses to build the trust they need to inspire brand loyalty in today’s market. Enabling business customers to buy needed or required commercial insurance during their journey on a trusted provider’s site or to access policy documents in real time at the point of sale are just two examples of how embedded commercial insurance has started doing this. As Millennials and Gen Z assume the reigns of B2B purchasing power, this transparency becomes even more important. For example, 22% of Gen Z consumers will think less of a brand or business due to a lack of transparency, more than any other generation before them.[5] On the flip side, 73% of all consumers say they would be willing to pay more from a business that exhibits more transparency.[6] Digital transformation of commercial insurance not only allows quick and confident purchasing but can continue building trust between the provider and consumer through seamless, transparent and secure access to coverage and coverage information.

Embedded insurance is a multi-trillion dollar opportunity.[7] Does your business require business customers to have insurance coverage? B2Bs that can offer their customers the insurance they need at the right time directly from their website will have a great advantage going into 2023, while wholesalers and MGAs who provide agents with quick access and ease of use will make more sales, faster. Contact iBynd today for more information on how you can start building more trust with embedded insurance.


[1] https://www.iii.org/fact-statistic/facts-statistics-commercial-lines

[2] McKinsey “Digital distribution in insurance: Cutting through the noise

[3] https://www.researchandmarkets.com/reports/5547761/global-embedded-insurance-business-and-investment

[4] NICE “2022 Digital-First Customer Experience Report

[5] CM Group “CM Group Consumer Research Reveals Radical Actions Marketers Must Take to Capture Gen Z

[6] Label Insight “STUDY: Nearly Three-Fourth of Consumers Would Pay More for Products that Offer Complete Transparency

[7] Torrance, Simon https://research.aperture.co/embedded-insurance-2022/

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