This piece is by Philipp Buschmann, co-founder and CEO of AAZZUR
One of the oldest industries in the world, insurance has experienced some of the most significant transformations. As the world gets smaller and more interconnected, the risks get higher. Adapting to new regulation in an unpredictable environment raises questions as to how the industry can continue to innovate whilst maintaining its trust and dynamism. This is where embedded finance steps in.
Embedded finance is not a quirky trend that will fizzle out, it is now an essential function of businesses that want to keep up with innovation and differentiate themselves in an increasingly competitive world. Technological advancement comes at speed, and leaders in the insurance industry must be prepared to quickly adopt its new offerings to boost growth, attract investment and satisfy customers. Here is how brokers can take advantage of this new technology and ensure its vitality in the years to come.
What Embedded Finance Really Means for Insurance
If you’ve spent any time in the insurance world, you know two things never change: underwriting is hard to get right, and claims are hard to make painless. But what is changing, and fast, is how technology is helping us do both better. One of the biggest shifts driving this? Embedded finance.
Embedded finance isn’t about adding bells and whistles, it’s about putting financial tools where people already are. Whether it’s offering credit at checkout or adding insurance during a booking, it’s frictionless, relevant, and built directly into the customer journey. The user doesn’t have to think about it, it’s just there, when and where they need it. That’s the power of embedded.
But the real potential isn’t just in selling policies at the right moment. The magic happens after the sale, specifically in underwriting and claims.
A Smarter, Fairer Approach to Underwriting
Let’s start with underwriting. For years, insurers have relied on static data: credit scores, demographics, claims history, maybe even some survey info. While that’s served us decently, it has limits, especially in today’s world, where people’s work, income, and risk profiles are anything but static.
Embedded finance allows insurers to plug into richer, real-time data streams. If a policy is embedded in a ride-hailing app, we can see exactly how often someone drives, when, and where. If it’s a coverage product inside a freelancer platform, we get real income patterns, client feedback, and even dispute histories.
That means underwriting that’s not just faster, but smarter. More accurate risk pricing. Fewer assumptions. And crucially, better access for people and businesses who’ve been unfairly scored or excluded by traditional models.
It’s a shift from “What box do they check?” to “What’s really happening in their day-to-day life?”
Claims That Don’t Feel Like Claims
Now let’s talk about the part nobody loves – claims. No matter how sleek the website or helpful the adjuster, traditional claims processes often leave customers feeling stressed, confused, or out of pocket longer than they should be.
Embedded finance flips this experience by closing the gap between the moment something happens and the moment the customer gets help. And it does that by integrating financial tools into the same platform where the loss occurs.
Take a delivery driver who gets into an accident while working. If their coverage is embedded in the delivery platform, the system already knows the time of the incident, location, trip details, even their hours worked. It can trigger a claim automatically, start verification in real time, and in many cases, pay out instantly.
There’s no long form. No back-and-forth emails. No delay in “discovering” the loss. The claim becomes just another seamless part of the customer journey. This not only boosts satisfaction, but it also cuts down fraud and admin costs too.
Allianz Partners works with Visa to to offer real-time insurance payouts to eligible cards. So if you baggage gets lost or your flight is delayed, you don’t have to deal with the extra hassle of contacting your provider, help is on its way in a single click.
Why Insurance Professionals Should Care
Embedded finance isn’t just about tech. It’s about staying relevant, and its impact is not just good for business but for employees as well. As embedded finance solution are implemented, upskilling follows suit, unlocking a new wave of potential for industry talent to thrive. AI is a tool – not a replacement, and with the right partnership insurance brokers can progress faster in their careers.
In addition, as digital platforms become the default way people live and work, they’ll expect insurance to show up where they are, when they need it, and without friction. If we don’t meet them there, someone else will.
Solaris is a notable company that has sprung into action. They have collaborated with companies to issue co-branded debit cards that have insurance features embedded directly into them. So when customers rent a car, the insurance is seamlessly integrated into the booking process, eliminating the need for additional paperwork or separate insurance arrangements. This integration not only simplifies the customer experience, but it also strengthens customer loyalty by providing added value directly within the service.
Embedded models also welcome whole new markets, such as part-time workers, digital-first businesses, and even micro-insurance opportunities that weren’t viable before. These aren’t edge cases anymore, they’re the mainstream in the making. Widening accessibility is a key function of embedded finance, and as more technology is introduced, the more customers will benefit and see a real impact in their lives.
And from an operational standpoint? Embedded partnerships bring insurers closer to real-time data, deeper customer insight, and faster processes. That’s not just good service – it’s good business.
The Bottom Line
Providing flexibility to a very rigid industry is a win for insurance professionals. Embedded finance isn’t there to intrude but be a helpful addition that spurs growth and makes the system work faster and smarter. It opens the door to a new era of underwriting and claims,
one where insurance stops being reactive and becomes truly responsive. This isn’t just another tool in the kit. It’s the foundation of the next generation of insurance—and the sooner we start building on it, the better.
AUTHOR BIO
Philipp Buschmann, Co-Founder and CEO at AAZZUR
Philipp Buschmann is co-Founder and CEO at AAZZUR, a one-stop-shop for smart embedded finance experience. Recognised as a rising star in the FinTech space, AAZZUR’s mission is to build profitable banking whilst at the same time empowering consumers to have access to better informed financial choices.
Philipp is a serial entrepreneur with extensive experience of working in Challenger Banking, Financial Services, IT and Energy across the world.
Having started as a developer in Financial Services, Philipp has first-hand experience of the banking revolution from both a technology and financial perspective. His interest in behavioural economics helped inspire AAZZUR’s revolutionary work on customer centricity in banking.
Philipp holds an MBA from the London Business School. He is passionate about entrepreneurship and loves exchanging ideas, insights and discussing FinTech’s future. He has spoken at major Fintech events including Money 20/20, MoneyLive, Finovate, Fintech Matters, and the Future of Retail Banking.
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