Embedded insurance is on the rise. It is transforming how and where coverage is offered, integrating protection into everyday platforms like e-commerce sites, travel apps, and ride-sharing services. As customers increasingly demand seamless, cohesive and personalized experiences, the insurance industry has an opportunity to increasingly focus on delivering tailored and impactful solutions for its customers.

We sat down with Cordula Klauss, Executive Director at J.P. Morgan Payments, to talk about the necessity of having an innovative payment solution and strategic payment partner in this dynamic industry. Based in Zurich, Cordula is part of the Financial Institutions Sales Group, specialising in Insurance and Asset Management clients across Continental Europe. With 19 years of experience at J.P. Morgan, Cordula brings extensive expertise in transaction banking, having previously managed client segments in both London and New York. She holds a PhD in Economics from the Sussex European Institute.

Cordula, why is having a strategic payment partner necessary in the insurance industry?

Cordula: “A strategic payment partner is especially necessary to help enable a secure, efficient and scalable customer experience. There is a rise in embedded insurance and a demand for innovative payment solutions. The insurance industry can be more proactive to meet these demands and establish partnerships that support payment innovation. Payment orchestration sits at the heart of embedded insurance, which involves managing  and optimizing the entire payment process through a unified platform. This includes technologies like API-driven solutions and Real-Time Payments, while forward-thinking innovations like Blockchain represent future opportunities that markets should keep an eye on. By establishing and strengthening the collaborations, the insurance industry can create new revenue streams and offer customers a cohesive experience, end-to-end.”

How is J.P. Morgan Payments supporting the industry with its payment solutions?

Cordula: “API integrations, real-time processing and 24/7 cross-border programmable payment solutions are setting new standards for speed and efficiency, enabling insurers to meet customer needs instantly. These are vital for a customer-first journey - serving as enablers of the embedded insurance ecosystem, ensuring that transactions, from premium collection to claims disbursement, are swift, secure, and efficient. J.P. Morgan Payments' solutions offer seamless 24/7 cross-border transactions, ensuring global reach and convenience. With programmability, clients can customize payment processes to fit their specific needs, while our currency flexibility allows for smooth operations in multiple currencies, enhancing clients’ financial agility.

Working with J.P. Morgan Payments provides more than just access to cutting-edge payment solutions; it establishes a strategic alliance that empowers insurers to transform their ecosystems, create new revenue streams, and deliver exceptional customer experiences that stand out in a competitive market. Together, we can craft tailored strategies that leverage our expertise and resources to meet the unique needs of each business and its customers.”

What is an example of a best practice you see?

Cordula: “For example, consider a travel company offering parametric insurance, which provides automated compensation for flight delays. When a covered flight delay is detected, the insurer sends the customer a text or email confirming their eligibility for compensation. Payouts in the correct currency are then received by the customer. This process involves innovative payment solutions like cross-border programmable payments, multi-currency support, API integrations, and real-time processing. This approach not only streamlines operations and boosts revenue by reducing manual processing but also enhances risk management. By minimizing friction at every step, it elevates the customer experience, fostering loyalty and satisfaction.”

What do you think the future will hold for payment solutions?

Cordula: “I believe innovative payment solutions such as biometric technology, blockchain, real-time processing, enhanced 24/7 cross-border payment solutions and API-driven solutions will continue to evolve. Let’s take health insurance, for example, where the use of biometric technology can enhance accuracy and security. When a claim or a payment is made against the policy, it triggers an automatic biometric authentication with the patient, to ensure the accuracy of the claim. This also creates a seamless customer experience throughout the purchase journey with automated compensation. The industry is moving towards developing this product*.

I would recommend insurers to start exploring partnerships with trusted payment solution partners now, engaging early to identify and address pain points such as market fragmentation, the need for real-time processing, and fraud prevention. Insurtechs can provide innovative solutions that target these challenges, bringing the fragmented market together and driving the future of a seamless customer experience.”

What's the next step to future-proof insurance offerings?

Cordula: “Engaging early is crucial. Adopting a proactive approach helps insurers stay ahead of the curve. Partnering with a trusted strategic payment provider enables insurers to prepare their next-gen insurance offerings for global customers and future-proofs them with capabilities like blockchain for enhanced security, transparency, and scalable customer experiences. I see collaboration as an enabler to unlock new opportunities and drive innovation, ensuring businesses remain agile and competitive in the future. With our scalable solutions and expert guidance, a smooth transition can be tailored to the insurer's pace, allowing them to explore advancements and gain valuable insights into the transformations reshaping the insurance landscape.”

Who is J.P. Morgan Payments?

Cordula: “J.P. Morgan Payments is a part of JPMorganChase, a leading global financial institution, which was founded in 1799. J.P. Morgan Payments combines treasury services, trade, card and merchant services capabilities to help clients pay customers or employees, in different currencies, around the world. Our global suite of products, technology platforms, and consultative expertise make us uniquely positioned to address the challenges businesses face today and tomorrow. J.P. Morgan Payments has a proven ability to deliver efficient and secure payment solutions at scale as a business evolves, with the agility one expects from a trusted innovator in payments.”

*J.P. Morgan does not currently provide the solutions described, such as biometric authentication and compensation, but is actively supporting the development of such innovative payment technologies and solutions.

Read more on the website of J.P. Morgan Payments