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Insurance Market Poised for Transformation with Embedded Payments, Says One Inc CEO

Opinion

Insurance Market Transformation Embedded Payments

Business Honor
06 August, 2024

By converting paper payments to electronic ones, One Inc. aims to optimize the payment and claim process

In a sector long seen as complex and lagging in digital innovation, the insurance industry is on the brink of a significant overhaul, according to Ian Drysdale, CEO of One Inc. Speaking with PYMNTS, Drysdale emphasized that the $12 trillion insurance market, encompassing health, property and casualty, and auto sectors, is ripe for change, particularly through the integration of embedded payments.

Highlighting the complex transactions involved in even a simple auto accident, Drysdale stated that insurance is one of the most complex markets on the planet. From premiums paid by consumers to payouts among insurance companies and other stakeholders, the traditional process remains cumbersome, with $500 million worth of paper checks still in circulation in the U.S. By converting paper payments to electronic ones, One Inc. aims to optimize the payment and claim process. Drysdale noted that this digital shift has already helped reduce payout costs by 60% for insurance firms. Looking ahead, he predicts that by the end of the decade, 30% of insurance transactions will occur through embedded channels, integrating insurance offers seamlessly into other digital transactions.

Consumers, particularly younger ones, are expected to embrace these changes, finding the convenience of embedded insurance options highly attractive. As the industry moves toward a more instant and digital future, the potential for growth and improved user experiences is substantial.