The future of insurance is embedded, intelligent, and everywhere

With Money20/20 Europe 2025 on the horizon, a key theme is embedded intelligence – finance powered by AI that can practically think for itself.

In insurance, this trend is taking shape as embedded insurance and involves coverage that shows up right when and where people need it, thanks to smart automation.

But what happens when insurance itself gets intelligent? We’re beginning to find out, as AI reshapes how policies are created, delivered, and managed in real time.

The AI-powered rise of embedded insurance

Embedded insurance has evolved from buzzword to business imperative. Insurers and brands are increasingly weaving coverage into everyday digital moments. Customers are now offered policies at online checkout, while booking a trip or during any high-intent action.

A recent Q1 2025 industry poll by Verdict Media named embedded insurance the top growth channel for personal lines, surpassing both direct-to-consumer and broker-led models.

Analysts forecast it could account for around 15% of global premiums within the next decade, and in the near term, it is set to grow nearly 30% by 2025.

So, what’s fueling the surge? For one, digital-first customers now expect insurance to be seamless, relevant, and instant – not a separate task. Second, AI and real-time data make that seamlessness possible. Intelligent algorithms can now assess risk and personalise coverage recommendations on the spot. In travel insurance, for example, AI dynamically adjusts policies based on destination, trip length, health data, or even local weather, ensuring pricing and coverage are optimised without manual input.

Beyond personalisation, AI is also transforming claims and customer service. Automation reduces costs, speeds up resolutions, and removes friction across the board. No surprise, then, that 94% of insurance executives now view embedded insurance as a cornerstone of their future strategy.

Evolving roles in an AI-augmented insurance industry

As AI continues to reshape the insurance landscape, it’s not just policies and products getting an upgrade – people’s roles are evolving, too. With automation taking over routine tasks, professionals are stepping into more strategic, specialised, and impactful positions:

• Underwriters are spending far less time buried in spreadsheets and far more time overseeing AI-powered risk models and tackling edge cases. The modern underwriter looks less like a back-office calculator and more like a hybrid of data analyst and product strategist.
• Agents and brokers are shifting focus from selling standard policies – those are increasingly handled by digital channels – to offering high-value advisory services. Their expertise now shines in nuanced, complex scenarios where human judgment still beats the algorithm.
• New specialist roles are also taking shape – think ecosystem partnership managers who build bridges between insurers and consumer-facing platforms, or AI model experts who ensure algorithms make fair, transparent, and accurate decisions.

The bottom line? Human talent isn’t going anywhere – it’s just moving upstream. The focus is now on steering strategy, monitoring AI systems, and delivering the kind of nuanced, empathetic service that machines still can’t replicate.

Innovating at startup speed

To keep up, insurers must innovate at startup speed – and that’s where the right partnerships make a difference. Vega IT, as a digital product development partner, helps carriers accelerate their AI and digital initiatives.

We’ve developed AI-based accelerators – pre-built solutions like intelligent chatbots and document automation – that dramatically speed up go-to-market. This means new digital insurance products or AI features can be deployed in weeks, not months, reducing time-to-market and quickly boosting revenue.

Along with these tools, our team’s deep insurance domain knowledge and cutting-edge tech expertise ensure that solutions are secure, scalable, and tailored to business needs. In short, we help turn “embedded intelligence” into real-world value – faster and with less risk.

Let’s connect at Money20/20 Europe

I’m excited to discuss these trends at Money20/20 Europe 2025 in Amsterdam (June 3–6). If you’re attending, let’s connect – I’d love to hear your perspective and explore how we can collaborate on AI-driven insurtech innovation. See you in Amsterdam!