The insurance industry, valued at an estimated $12 trillion, spans various sectors including health, property, casualty, and auto insurance. Despite its size, the industry remains highly complex and in need of a digital overhaul, according to One Inc CEO Ian Drysdale.
“Insurance is one of the most complex markets on the planet,” Drysdale told PYMNTS. He highlighted the inefficiency of paper checks, which still account for $500 million worth of transactions in the U.S. alone.
One Inc aims to digitize these payments, creating a seamless experience for all stakeholders involved in insurance transactions. The company’s digital payments network is designed to improve user experience and operational efficiency by automating payment reconciliation across various back offices.
The insurance industry has started to embrace digital transformation, although it lags behind other sectors. Five years ago, insurers were two decades behind other industries in adopting eCommerce and mobile technologies. The rise of InsurTechs, however, is driving many leading and mid-market insurance companies towards a more digital approach.
Payments play a crucial role in this shift. Embedded payments not only enhance user experience but also improve corporate margins. “You might pay your auto insurance 12 times a year,” Drysdale noted. “That’s when you really ‘experience’ your insurance company.”
One Inc’s solutions allow insurers to remind customers of upcoming payments, integrate modern digital wallets, and enable digital claims submissions and sign-offs. This digital integration has reportedly reduced the cost of payouts by 60%.
By 2030, Ernst and Young estimate that 30% of insurance transactions will be conducted through embedded channels, with One Inc projecting that $70 billion in premiums will be embedded — offering fast, agent-free transactions. This seamless data sharing between parties is expected to drive top-line growth for insurers.
The future of insurance, according to Drysdale, is moving towards instant, fully online transactions, eliminating the wait for paper checks. “Any kind of insurance that is completely online and seamless is hyper-attractive to an insurance company,” he said.
