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29 May 2025

5 Mistakes to Avoid When Launching Embedded Protection

E-commerce in India has matured. Customers are shopping across categories, paying digitally, and getting orders delivered to remote towns in days.

E-commerce in India has matured. Customers are shopping across categories, paying digitally, and getting orders delivered to remote towns in days.

E-commerce in India has matured. Customers are shopping across categories, paying digitally, and getting orders delivered to remote towns in days.

Insurance

5 min read

5 min read

5 min read

Embedded Protection
Embedded Protection

5 Mistakes to Avoid When Launching Embedded Protection

Adding protection to your product isn’t a side project anymore. Whether it’s purchase cover, device protection, trip delay support, or business continuity—embedded protection has become a strategic lever. It improves margins, boosts retention, and builds long-term trust with users.

But for all its upside, many companies get stuck—or slowed down—because of how they approach the build.

Over the past few years, we’ve seen smart teams invest in protection and still hit roadblocks. Sometimes because of the wrong partner. Sometimes because they tried to do too much internally. And sometimes because they underestimated just how layered the insurance stack really is.

Here are five traps we see often—and what to think about instead.

1. Thinking Your Tech Team Can Handle the Insurance Layer

You’ve got a solid product team. You’ve shipped payments, logistics, workflows — so how hard can integrating protection be?

The truth is, it’s not the integration that slows things down. It’s everything around it.

Claims flows. Regulatory audits. Dynamic pricing approvals. Documentation. Capacity contracts. Even the smallest protection program has layers of logic, operations, and compliance that aren’t obvious at the start.

Many teams try to build the insurance layer themselves—or assume their insurer’s “portal” or “API” is ready to scale. And what starts as a quick sprint turns into a product backlog that derails the roadmap.

If you're going to build internally, that’s fine. Just know you’ll need more than dev time. You’ll need dedicated ops, compliance expertise, customer support logic, and continuous tracking of SLAs and claims.

The more realistic approach? Treat the insurance layer the way you'd treat payments or KYC: as infra. Plug into what already works. Focus your team on experience and distribution—not on decoding the backend of protection.

2. Choosing a Risk Partner Without Understanding the Structure

Most businesses assume insurance capacity is handled once a partner is chosen. But not all partners handle it the same way.

Some are tied to a single insurer. Some work with a broader network. Some manage the risk directly, some reinsure, while others act as aggregators or MGAs. And the structure affects everything: product flexibility, pricing approvals, speed of launch, and ability to scale.

This is something we broke down in [What Insurance Capacity Actually Means—and Why It Shapes Growth].

The key is understanding what kind of relationship your partner has with insurers—and what happens when you want to grow the program, change the coverage, or offer protection in a new category.

Ask early:

  • Where is the capacity coming from?

  • Who owns the compliance burden?

  • What happens if volume scales or risk ratios shift?

Insurance is not plug-and-play. But with the right structure, it can scale quietly in the background—without adding operational debt later.

3. Prioritising Launch Over Longevity

It’s easy to focus on speed to market—get a product live, add a revenue stream, and start collecting feedback. But in insurance, what happens after launch matters more.

Programs often go live without a clear view of what’s next: no claims support plan, no escalation protocol, no renewal logic, no post-sale visibility.

That creates friction—not just for the customer, but across product, CX, and support teams. And it shows up as lower NPS, longer resolution times, and slower adoption in the long run.

Launching protection isn’t just about day one. It’s about whether your systems and teams can support what happens on day 100 and beyond.

If you’re not thinking through the lifecycle, even a smooth launch can become a liability later.

4. Letting Your Insurer Own the Entire Experience

Insurers are critical to getting coverage and pricing right. But when they own the full customer experience — onboarding, claims, communication—you lose visibility and control.

Your users won’t blame the insurer for a bad experience. They’ll blame you.

That’s why businesses increasingly look to control the interface, even when the underlying coverage is handled by a partner. You don’t have to build claims logic from scratch—but you should be able to control how updates are shared, how issues are escalated, and how your brand shows up during those key moments.

Protection is part of the product. You need to treat the customer experience around it the same way.

5. Picking Protection Based on Price, Not Fit

Everyone wants the best deal. But with insurance, the cheapest price upfront often creates the most cost later.

Underpriced protection tends to either:

  • Deliver poor service at the moment it’s needed

  • Get repriced the moment losses rise

  • Or, worst case, get pulled entirely

And if you're embedding protection into your product, that kind of change hurts more than just revenue—it hurts trust.

What matters more than the quote is the structure behind it. Is the coverage aligned to the risk? Are claims being handled well? Are customers actually satisfied after using it?

You’re better off paying the right price for something that actually works than saving marginally on something you’ll need to rebuild later.

Protection should be a retention driver. Not a liability waiting to surface during your busiest season.

Final Thought

Embedded protection is no longer new. But it’s still easy to get wrong—especially when it’s treated just like a feature.

If you’re building internally, expect to own compliance, claims, servicing, and capacity planning. If you’re working with a partner, make sure their tech, coverage, and structure won’t create friction when scale hits.

At Assurekit, we work with teams that want to integrate protection into their product in a way that’s simple, stable, and actually adds value—without slowing down everything else.

If that’s something you’re exploring, we’re around to help you think it through.

5 Mistakes to Avoid When Launching Embedded Protection

Adding protection to your product isn’t a side project anymore. Whether it’s purchase cover, device protection, trip delay support, or business continuity—embedded protection has become a strategic lever. It improves margins, boosts retention, and builds long-term trust with users.

But for all its upside, many companies get stuck—or slowed down—because of how they approach the build.

Over the past few years, we’ve seen smart teams invest in protection and still hit roadblocks. Sometimes because of the wrong partner. Sometimes because they tried to do too much internally. And sometimes because they underestimated just how layered the insurance stack really is.

Here are five traps we see often—and what to think about instead.

1. Thinking Your Tech Team Can Handle the Insurance Layer

You’ve got a solid product team. You’ve shipped payments, logistics, workflows — so how hard can integrating protection be?

The truth is, it’s not the integration that slows things down. It’s everything around it.

Claims flows. Regulatory audits. Dynamic pricing approvals. Documentation. Capacity contracts. Even the smallest protection program has layers of logic, operations, and compliance that aren’t obvious at the start.

Many teams try to build the insurance layer themselves—or assume their insurer’s “portal” or “API” is ready to scale. And what starts as a quick sprint turns into a product backlog that derails the roadmap.

If you're going to build internally, that’s fine. Just know you’ll need more than dev time. You’ll need dedicated ops, compliance expertise, customer support logic, and continuous tracking of SLAs and claims.

The more realistic approach? Treat the insurance layer the way you'd treat payments or KYC: as infra. Plug into what already works. Focus your team on experience and distribution—not on decoding the backend of protection.

2. Choosing a Risk Partner Without Understanding the Structure

Most businesses assume insurance capacity is handled once a partner is chosen. But not all partners handle it the same way.

Some are tied to a single insurer. Some work with a broader network. Some manage the risk directly, some reinsure, while others act as aggregators or MGAs. And the structure affects everything: product flexibility, pricing approvals, speed of launch, and ability to scale.

This is something we broke down in [What Insurance Capacity Actually Means—and Why It Shapes Growth].

The key is understanding what kind of relationship your partner has with insurers—and what happens when you want to grow the program, change the coverage, or offer protection in a new category.

Ask early:

  • Where is the capacity coming from?

  • Who owns the compliance burden?

  • What happens if volume scales or risk ratios shift?

Insurance is not plug-and-play. But with the right structure, it can scale quietly in the background—without adding operational debt later.

3. Prioritising Launch Over Longevity

It’s easy to focus on speed to market—get a product live, add a revenue stream, and start collecting feedback. But in insurance, what happens after launch matters more.

Programs often go live without a clear view of what’s next: no claims support plan, no escalation protocol, no renewal logic, no post-sale visibility.

That creates friction—not just for the customer, but across product, CX, and support teams. And it shows up as lower NPS, longer resolution times, and slower adoption in the long run.

Launching protection isn’t just about day one. It’s about whether your systems and teams can support what happens on day 100 and beyond.

If you’re not thinking through the lifecycle, even a smooth launch can become a liability later.

4. Letting Your Insurer Own the Entire Experience

Insurers are critical to getting coverage and pricing right. But when they own the full customer experience — onboarding, claims, communication—you lose visibility and control.

Your users won’t blame the insurer for a bad experience. They’ll blame you.

That’s why businesses increasingly look to control the interface, even when the underlying coverage is handled by a partner. You don’t have to build claims logic from scratch—but you should be able to control how updates are shared, how issues are escalated, and how your brand shows up during those key moments.

Protection is part of the product. You need to treat the customer experience around it the same way.

5. Picking Protection Based on Price, Not Fit

Everyone wants the best deal. But with insurance, the cheapest price upfront often creates the most cost later.

Underpriced protection tends to either:

  • Deliver poor service at the moment it’s needed

  • Get repriced the moment losses rise

  • Or, worst case, get pulled entirely

And if you're embedding protection into your product, that kind of change hurts more than just revenue—it hurts trust.

What matters more than the quote is the structure behind it. Is the coverage aligned to the risk? Are claims being handled well? Are customers actually satisfied after using it?

You’re better off paying the right price for something that actually works than saving marginally on something you’ll need to rebuild later.

Protection should be a retention driver. Not a liability waiting to surface during your busiest season.

Final Thought

Embedded protection is no longer new. But it’s still easy to get wrong—especially when it’s treated just like a feature.

If you’re building internally, expect to own compliance, claims, servicing, and capacity planning. If you’re working with a partner, make sure their tech, coverage, and structure won’t create friction when scale hits.

At Assurekit, we work with teams that want to integrate protection into their product in a way that’s simple, stable, and actually adds value—without slowing down everything else.

If that’s something you’re exploring, we’re around to help you think it through.

Ready to level up?

Ready to level up?

Ready to level up?

Assurekit is a full-stack digital insurance platform built for growth, that enables anyone to create, sell and manage contextual insurance products in a plug-and-play manner

©2024 Assurekit technology & service pvt ltd

Assurekit is a full-stack digital insurance platform built for growth, that enables anyone to create, sell and manage contextual insurance products in a plug-and-play manner

©2024 Assurekit technology & service pvt ltd

Assurekit is a full-stack digital insurance platform built for growth, that enables anyone to create, sell and manage contextual insurance products in a plug-and-play manner

©2024 Assurekit technology & service pvt ltd