Across a range of industries, companies are increasingly looking to “embed” insurance into their platforms, providing their consumers tailor-made insurance coverage at the point of sale. Embedded insurance products are often closely integrated with a company’s website to permit its customers to seamlessly purchase insurance online while they are purchasing other goods or services. But companies considering this “embedded insurance” model must confront the complicated, and sometimes confusing, world of the US’s state-based insurance regulatory regime.
As we’ve previously written here, companies seeking to enter into the highly-regulated insurance space should be familiar with certain key regulatory issues. This article provides an overview into the perhaps the most fundamental regulatory issue that is essential to understand before launching an embedded insurance offering: licensing.