The emergence of “embedded insurance” is disrupting the insurance distribution chain’s reliance on traditional insurance carriers and producers. Instead, new technology platforms enable companies to embed the purchase of insurance coverage along with their brands’ core product offerings. Embedded insurance allows companies—across a range of industries—to offer their consumers tailor-made insurance coverage at the point of sale, providing consumers a more frictionless purchasing experience as well as supplying insurance underwriters with more data for better pricing.

This article highlights six key issues of which companies seeking to enter into the highly regulated insurance space should be familiar.

1. Licensing