Written by Sabine VanderLinden

• Discover how generative AI and digital innovation transform insurance business models, driving personalized coverage and operational agility for forward-thinking executives, startup founders, and innovation leaders in 2025.  

• Explore actionable strategies for leveraging AI-driven insurance trends—such as embedded, modular, and usage-based models—to gain a lasting competitive advantage in a rapidly evolving market.  

• Learn how to meet rising expectations of digital-first customers and board-level innovation demands by adopting scalable, data-powered insurance solutions validated by real-world case studies and research.  

Imagine a world where insurance is as easy as ordering a coffee.

What if, instead of slogging through paperwork and endless phone calls, your coverage turned on automatically when you needed it and turned off when you didn’t?

What if tech-savvy startups and forward-thinking incumbents reinvented how protection is priced, sold, and delivered—transforming it from a slow-moving chore into a sleek, customer-centric service?

Digital technology is enabling these new business models and transforming customer interaction, making insurance more accessible and responsive than ever before. What if buying a plane ticket included invisible flight insurance, or a sensor in your car adjusted your premium based on how safely you drove?

In this thought experiment, I explore ten cutting-edge business models—each with its own clever acronym and real-world example—that are making these “What ifs” a reality in 2025. These models promise to reshape insurance for executives and startup founders alike, turning the industry upside down and unlocking new revenue streams, smarter pricing, and a truly digital marketplace—innovations that are essential for gaining a competitive advantage in the rapidly evolving insurance sector.

Why This Matters Now for Business Models?

The insurance sector isn’t just being disrupted. It’s entering a phase of rapid transformation unlike anything seen in decades.

Several forces are converging to create a once‑in‑a‑generation inflection point:

• A fast‑moving and deeply interconnected risk landscape: By mid‑2025, insurers were already navigating a risk environment shaped by geopolitical turbulence, climate volatility, cyber threats and fragile infrastructure. These risks are multiplying faster than traditional insurance models can respond, forcing leaders to rethink the very foundations of coverage and resilience.

• Climate and cyber threats top the agenda: Executives now see climate change and cybersecurity as the two most urgent risks. Large‑scale weather events, “secondary perils” and cascading supply‑chain failures are testing carriers’ balance sheets, while cyber attacks are growing in frequency and severity. The current cyber market remains vastly underinsured, making the closing of this protection gap “one of the industry’s most urgent and strategic imperatives.”

• Technological acceleration and new competition: The rise of generative AI and other data‑driven tools is reshaping how insurers assess risk, set prices and deliver services. Tech‑savvy entrants and platform players are exploiting these tools to offer personalised, real‑time coverage and are encroaching on lines once dominated by incumbents. If insurers don't innovate quickly, they risk losing relevance to new ecosystem orchestrators and insurtechs.

• Macro and geopolitical uncertainty: The global economy is fragmenting. Uneven growth, trade tensions and political polarisation have created "volatility and uncertainty not seen in decades.” Regulatory fragmentation and rising compliance costs compound the complexity. Nearly 80% of insurers surveyed say they plan to accelerate their cost‑reduction initiatives and refocus their spending over the next two years; large carriers in Europe and Asia intend to be especially aggressive. The industry is preparing for a tougher macro environment, and transformation budgets are being prioritised.

• Rising customer expectations: Digital‑first consumers want insurance that is frictionless, personalised and delivered in real time. They’re comparing insurers not only with each other but with the likes of Amazon and Apple. Continuous engagement, preventive services and embedded protection are quickly becoming table stakes. Innovative marketing strategies are now crucial for insurers to reach and retain these digital-first consumers. Boards recognise that failing to meet these expectations could see customers switch to more innovative rivals.

• A rare window of opportunity: Despite the volatility, current market conditions (including plentiful capacity and healthy competition) provide a short‑term window to invest in new models. At the same time, advanced data tools and partner ecosystems create “more opportunities and incentives for insurers to innovate.” Waiting until the next crisis hits or until competitors have scaled new offerings will be costly. A deep understanding of these market shifts is critical for insurers to make informed strategic decisions.

10 business models! 10 ideas... for you to reinvent your business for long-term success.

1. HIDE – Hidden Insurance, Delivered Effortlessly

What is this?

Insurance that's built into other products or services you buy. You might not even notice it – it's “hiding” in your purchase, giving you protection without a separate signup. Imagine buying a plane ticket and automatically getting flight insurance, or renting a car and coverage is already included.

That's HIDE.

• From: Customers having to seek out and buy insurance separately for every purchase.

• To: Insurance offered seamlessly at the point of need, as an add-on in apps, websites or checkout carts.

Financial Opportunity: #1 of 10 – highest

We already know this. Embedded insurance could reach hundreds of billions in premiums by 2030, making it one of the biggest growth areas in the industry. Insurers love it because it taps new markets and partners (retailers, travel sites, carmakers) to sell more policies as an add-on in apps, websites or checkout carts. Embedded insurance models also streamline the payment process, making it easier for customers to purchase coverage without additional steps. AI and machine learning are transforming traditional insurance processes, enabling more precise risk assessment, fraud detection, and automated claims processing, which further enhances the scalability of embedded insurance models.

Real-world Examples

Australian life insurer TAL teamed up with Insurtech Cover Genius to embed life coverage into platforms used by gig workers. In Europe, Stellantis (Peugeot’s parent) now bundles auto insurance into car sales via a digital platform via a multi-year partnership with insurance tech firm Wrisk. Customers of 12 car brands get “drive-away” coverage in one click. Big names like Allianz, Chubb, and AXA are striking deals with airlines, banks, e-commerce and even Big Tech to hide insurance in everyday transactions, boosting reach and revenue. These partnerships often involve an exchange of data, technology, or customer access, allowing both parties to maximize the benefits of the collaboration.

2. ONE – One-Stop Networked Ecosystems with Digital Technology

What is this?

The insurer as an ecosystem orchestrator. In this model, insurance companies don't just sell policies – they build or plug into a whole network of services around customer needs. Think of it like a one-stop shop or “super-app” for risk and lifestyle. For example, a home insurer might offer home security devices, maintenance services, emergency repairs, and home insurance in an integrated package. A health insurer can also provide wellness apps, diet coaches, telemedicine, and health insurance in one ecosystem. The idea is to solve broader customer problems (not just pay claims) by partnering with tech firms, service providers, and competitors.

That's ONE

• From: Siloed products and narrow role as claim-payer – insurers sell a policy, and that's the end of the relationship, except for claims.

• To: Integrated solutions and platforms, where insurers provide a hub that delivers insurance plus value-added services, through a network of partners (the “One-Office” or “One-Stop” approach.)

Financial Opportunity: #2 of 10

Ecosystem plays are huge because they allow insurers to tap multiple revenue streams (not just premiums, but fees from services, subscriptions, etc.) and increase customer lifetime value. Leading insurers embracing ONE models have seen deeper customer engagement and new growth.

For example, China’s Ping An built a healthcare-finance-insurance ecosystem that serves hundreds of millions and significantly boosts cross-sell. Globally, insurers are pursuing ecosystems in areas like mobility (auto + travel + maintenance), smart homes, and SME business services. The financial upside is massive but requires scale – those who succeed could dominate entire customer ecosystems, not just insurance slices. Adopting the ONE model can strengthen an insurer's position in the market by enabling deeper integration into customers' lives and aligning strategically with evolving customer needs. One analysis notes that Horizon 3 insurers seek “new sources of value across the entire insurance ecosystem” through co-creation with partners.

Real-world examples

Discovery’s Vitality platform (originating in South Africa) is an ecosystem model in health/life insurance. Discovery partners with gyms, grocers, and Apple to reward customers for healthy behavior, driving down claims and generating new fees. In Europe, Allianz launched an ecosystem for small businesses, bundling insurance with legal, accounting, and cybersecurity services via partners. Aon and Zurich are building climate resilience ecosystems, offering tools and advice alongside insurance to help communities prevent losses. The trend is so strong that insurers without an ecosystem strategy risk being relegated to commodity providers, while those with a ONE approach become indispensable “risk managers” embedded in customers' daily lives.

3. METER – Measured Exposure & Tailored Efficient Rates

What is this?

Pay-how-you-use insurance. With METER models, your behavior or usage determines your price. Think telematics car insurance: a device or app measures how far or how safely you drive, and you pay per mile or get a rate based on your driving habits. It's like an electric meter – you pay for the units you consume. No more one-size-fits-all premiums, you only pay for the risk you actually use.

That's METER

• From: Flat annual premiums and static pricing based on broad averages.

• To: Personalized, pay-per-use pricing that adjusts to real-time data (miles driven, hours flown, health steps, etc.)

Financial Opportunity: #3 of 10

Usage-based insurance is exploding in auto and beyond. Nearly every major auto insurer now has a telematics program (Progressive Snapshot, Allstate Drivewise, Travelers IntelliDrive, etc.), and usage-based products are expanding to home, health, and even commercial lines. This model can unlock significant growth by attracting safe, low-risk customers with cheaper rates and by entering new markets (e.g., pay-as-you-go insurance for gig workers or short-term projects). It's financially attractive because it better aligns price with risk, improving loss ratios for carriers. Insurers must closely monitor the numbers to ensure the profitability of usage-based models.

Real-world Examples

Travelers Insurance's IntelliDrive program charges drivers based on miles and driving behavior, and the company is expanding usage-based offerings across personal and commercial lines. In Europe, Generali and Admiral are thriving on pay-per-mile models. Even regulators are supportive – many markets allow telematics data for pricing, and consumers have warmed to the “drive less, pay less” promise. EY notes that usage-based and modular add-on features demonstrate to customers that insurers serve their unique needs, boosting loyalty.

The bottom line: measured-use insurance is moving mainstream.

4. GHOST – Giant Hidden Operator Supplying Insurance Turnkey

What is this?

In this model, big insurers become the behind-the-scenes provider for other brands' insurance offerings – a bit like a "ghostwriter" of insurance. A GHOST insurer handles the heavy lifting (licensing, underwriting, claims) but lets the partner brand put its name on the product. For example, a popular e-commerce or telecom company wants to sell insurance to its customers. Instead of becoming an insurer, they partner with a large carrier that provides insurance-as-a-service in white-label form. The end customer might think it's the retailer's insurance, but it's the GHOST carrier's product in disguise. Essentially, insurers rent out their infrastructure and balance sheet to power other companies' insurance programs.

That's GHOST

• From: Insurers only selling directly under their own brand through traditional channels.

• To: Insurers acting as wholesale providers and platforms, enabling non-insurance brands (or startups) to offer insurance embedded in their offerings. The carrier's role is largely invisible, providing APIs, product modules, and capital behind the scenes.

Financial Opportunity: #4 of 10

GHOST models allow insurers to scale massively without customer acquisition costs, by piggybacking on the customer bases of banks, retailers, airlines, gig platforms, and more. It effectively turns insurance into a utility service that can be plugged in anywhere. Financially, this can generate enormous premium volume. For instance, Swiss Re's white-label unit iptiQ and Munich Re's Digital Partners (folded back into the group) have each helped launch dozens of new insurance programs with brands across the globe. Today, many top insurers have dedicated “insurance-as-a-platform” divisions. This model also fends off disintermediation: rather than losing business to Amazon or Google, the insurer becomes their behind-the-curtain partner. Margin-wise, it's typically a lower-cost, high-volume game. Insurers receive compensation for providing infrastructure and support to partner brands. The upside comes from volume and diversification, while partners handle distribution. As one partnership announcement put it, even a giant like Japan’s Sumitomo is teaming with insurtech Bolttech in a joint venture to deliver "embedded solutions to distribution partners" across Asia – clearly betting on the scale of Insurance-as-a-Service.

Real-world examples

Allianz powers the insurance products of multiple big brands (from automakers to travel sites) via its Allianz Partners unit – for instance, Allianz partners with leading OEMs, retailers, and insurtechs such as Bolttech and Samsung, enabling coverage at the point of sale for phones, electronics, and household goods globally. AXA does similarly with its AXA Partners arm, recently partnering with 50+ banks and fintechs to embed AXA insurance in those companies' apps (e.g., Ant Bank and AlipayHK). Platforms like Bolttech and Cover Genius have become aggregators connecting large insurers to consumer brands. The GHOST model is essentially the “Intel Inside” of insurance – insurers may not get the glory, but they get the premium volume by being everywhere.

5. ZIP – Zero-lag Index-Based Payouts

What is this?

Insurance that pays out instantly when a triggering event happens – no adjusters, no haggling. ZIP policies use a parametric trigger (an objective index or data point) to decide claims. For example, a hurricane insurance that pays a fixed $10,000 the moment a Category 4 storm hits your area, or flight insurance that automatically pays you if your flight's delayed 2+ hours. It's basically fast insurance by formula – if X event occurs (as measured by sensors or data), you "zip" money to the customer immediately. (Check this great podcast interview with Mike Gulla from Adaptive Insurance.)

That's ZIP

• From: Lengthy claims processes where customers must file a claim and insurers investigate before paying (often taking weeks).

• To: Automatic payouts within seconds or days of a verified event, using preset data triggers (rainfall amounts, quake magnitude, flight delay time, etc.).

Financial Opportunity: #5 of 10

Parametric insurance is still emerging but growing fast, projected to roughly triple from ~$11.7B in 2021 to $29B+ by 2031. It's strategically disruptive because it can cover risks traditional insurance struggles with – natural catastrophes, pandemics, supply-chain disruptions, and even cyber outages. By filling protection gaps and appealing to customers who value speed and certainty, ZIP models open new revenue streams. The success of these models depends on their ability to deliver fast, reliable payouts and meet customer expectations. They also operate with lower overhead (no lengthy claims handling), which can improve insurers' margins. More (re)insurers and investors are jumping in to support parametric products in 2025, boosting capacity and innovation in this space.

Real-world Examples

MAWDY (MAPFRE Assistance) partnered with Blink Parametric to offer travel policies that pay you on the spot for baggage delays or missed connections. After a volcanic ash cloud grounded flights, some insurers using parametric triggers automatically paid stranded travelers within hours. In agriculture, AXA Climate provides parametric crop insurance in Africa – if rainfall drops below a threshold, farmers get an immediate payout to offset losses, and no claim is needed. This year, Tokio Marine teamed with startup Adaptive Insurance to launch a short-term power outage parametric cover (dubbed GridProtect) across 18 U.S. states. ZIP insurance isn't just faster. It's expanding the frontier of insurable risks.

6. BITE – Bite-sized Insurance, Timely and Easy

What is this?

Tiny, on-demand insurance policies you can buy instantly for short periods or specific events. BITE-sized insurance is as easy as grabbing a snack – coverage for a single day, a single item, or a specific trip, all via your phone. Going skiing this weekend? Click to insure your trip just for those 3 days. Renting out your home for a week? Turn on a one-week host insurance. These policies are cheap, temporary, and ultra-focused on the exact need. Disruptive business models in health insurance shift the role of insurance providers from strictly payers to healthcare providers, and BITE-sized policies are a step toward this transformation by addressing specific, immediate needs.

That's BITE

• From: Long-term, annual policies that often over-insure or require a big upfront commitment.

• To: Micro-duration coverage on-demand, activated and canceled as needed via apps.

Financial Opportunity: #6 of 10

On-demand microinsurance unlocks huge new customer segments, especially in emerging markets and the gig economy. It's financially disruptive because it brings insurance to billions of people who previously couldn't afford or commit to whole policies. In fact, carriers in some markets now offer health or life coverage for as little as $0.20 per month! While each policy is small, the volume is massive – serving even 1% of the world's 4 billion uninsured could mean 40 million new customers. Insurers that master BITE models can scale globally with digital distribution and almost zero marginal cost per policy. Platforms like BIMA and Cover2Go partner with big insurers to sell millions of tiny policies, processing thousands of transactions daily, which demonstrates the scalability and reach of this model.

Real-world Examples

Allianz and AXA are investing in microinsurance in Asia and Africa – e.g., offering farmers drought coverage for a planting season, delivered via mobile phone with payments deducted from airtime. Startup platforms like BIMA and Cover2Go partner with big insurers to sell millions of tiny policies (hospital cash, phone insurance) through telcos and fintech apps. Even in developed markets, companies like Slice pioneered on-demand insurance for single items (like a camera for a month) or short-term rental hosts, prompting giants like Allstate, American Family Insurance, and GEICO to pilot or launch their own bite-sized, on-demand insurance solutions, such as Allstate's HostAdvantage, which provides low-cost, add-on homeshare protection. The ease and timing of BITE policies are winning over today's impatient, digital-native customers.

7. PREP – Preventive Risk Engagement & Protection

What is this?

A shift from passively paying claims to actively preventing losses. PREP is all about insurers using data, IoT sensors, and expert services to help customers avoid trouble in the first place. It's like having a guardian angel: the insurer monitors for risks and gives you a heads-up or interventions to keep you safe. For instance, the insurer provides a smart water leak detector for your home and alerts you before a pipe bursts – preventing a huge claim. Or a commercial insurer offers AI-driven cybersecurity monitoring to stop hacks rather than just covering losses. Insurers become partners in risk management, not just payers after the fact.

That's PREP

• From: Reactive, claims-centric model – the insurer's role kicks in only after something goes wrong (check arrives after you suffer a loss).

• To: Proactive, prevention-centric model – the insurer actively engages with customers to predict and mitigate risks, providing alerts, safety advice, IoT devices, and services to avoid losses.

Financial Opportunity: #7 of 10

While prevention services might be an added cost, the strategic payoff is huge: lower claim frequencies, stronger customer loyalty, and potential new revenue from selling risk advisory services. Some insurers charge subscription fees for premium IoT-based protection packages, turning risk prevention into a service line. Even when offered free, these programs can dramatically improve profitability by cutting claims (every dollar invested in resilience can save up to $13 in post-disaster costs). Customers and regulators increasingly value prevention in a world of rising natural catastrophes and cyber threats. Some prevention programs are even made available to the public, extending benefits beyond just policyholders. Insurers that excel at PREP could effectively "cherry-pick" good risks and reduce payouts, giving them a financial edge over competitors who remain reactive.

Real-world examples

Chubb and Hartford provide IoT sensor programs for commercial clients – sensors that detect water leaks, fire risks, or machine failures early, with insurers' teams providing 24/7 alerts and support to fix issues before they escalate. In personal lines, State Farm offers discounts if you use their partnered smart home devices (fire alarms, security cams), effectively paying you to prevent claims. As one strategic roadmap put it, leading carriers are implementing "Prevention-as-a-Service" models that embed IoT, data analytics, and customer engagement into the value proposition. This model blurs the line between insurance and safety service – provoking insurers to ask: if we could stop the loss from happening, why wouldn't we?

8. MOSAIC – Modular Offerings for Specialized And Individualized Cover

What is this?

Break the traditional insurance bundle into modular pieces that customers can mix and match to create their ideal coverage. MOSAIC is all about personalization: instead of selling one monolithic policy that covers a bunch of things the customer may not need, insurers offer a menu of micro-coverages and riders that the customer picks à la carte. It’s akin to building a mosaic – each small tile is a coverage component (e.g., an add-on for smartphone screen damage on your home policy, or mental health support in your health policy). Customers assemble the pieces that fit their life and can rearrange them over time. Advanced data and AI make it possible to recommend the right pieces and price them dynamically for each person.

That's MOSAIC

• From: One-size-fits-all policies with generic coverage and little flexibility (customers often end up under- or over-insured).

• To: Hyper-personalized, modular policies that cater to individual needs and can adapt as those needs change. Every customer essentially gets a unique policy "stack,” often updated via app with just a few clicks.

Financial Opportunity: #8 of 10

The personalized model doesn't create new volume out of thin air but can capture market share by better meeting consumer expectations. In 2025, customers (especially Gen Z and Millennials) expect bespoke experiences – insurance is no exception. Those carriers using AI and data to offer the right coverage at the right time can win a disproportionate number of customers and charge a premium for relevance. Moreover, modular design enables insurers to easily partner and embed specific modules in new places (overlapping with embedded and ecosystem plays). Financially, MOSAIC can improve profitability by reducing coverage waste and anti-selection. If each customer has precisely calibrated coverage, insurers can price risk more accurately and avoid covering exposures the customer doesn’t value. Modular policies are subject to frequent updates as customer needs evolve. As one trend analysis put it, hyper-personalization is becoming a baseline expectation for insurers by 2025. The winners will be those who leverage AI to turn all that customer data into tailored offerings in real time.

Real-world examples

Ping An’s OneConnect platform in China enables partner banks and digital companies to offer modular insurance products – customers can toggle specific protections on/off in an app (e.g., add earthquake coverage to a basic property policy for a small fee, then remove it later). In the U.S., startup Ladder offers life insurance that customers can increase or decrease on demand as their needs change (new baby, new mortgage, etc.), exemplifying flexible personalization. Traditional insurers are catching up: Allstate’s digital brand allows customers to build their own bundle of auto, home, and gadget coverages, and adjust limits with a swipe. Likewise, European insurer Achmea launched an app for freelancers where they pick and pay for precisely the protections they want (liability, equipment, income loss, etc., as separate tiles). This modular, pick-your-cover approach ensures no two customers have identical policies – truly a mosaic that reflects each one's life. It's a provocative shift from the old days of "take it or leave it” policies, and one that's forcing insurers to overhaul product design and underwriting to keep up.

9. CARE – Continuous Assistance & Risk Engagement for Customers

What is this?

Insurance moves from a one-off policy sale to an ongoing service relationship. The CARE model emphasizes keeping in touch with customers year-round with helpful interactions, rather than the old pattern of "sell policy, then silence until a claim or renewal.” It's about subscription-style engagement: customers might pay monthly and get a bundle of services and coverages that can evolve with their needs. The insurer provides continuous care – check-ins, tips, adjustments to coverage, loyalty perks – making the experience more like a membership than a forgettable contract. In essence, insurers aim to care for customers over time, not just cash their checks.

That's CARE

• From: Annual renewal cycles and minimal customer contact (often only sending a bill or dealing with claims).

• To: Always-on engagement, with insurers using apps and digital channels to interact frequently, update coverage on the fly, and offer subscription or membership models that customers can adjust anytime.

Financial Opportunity: #9 of 10

This is more about defending and expanding revenue per customer than creating new markets. The financial logic is that higher engagement = higher retention and cross-sell. If customers stick around longer and buy more add-ons, the lifetime value soars. Subscription models (monthly fees, coverage bundles that auto-renew) can also smooth revenue and improve predictability. Many insurers report that digitally engaged customers have significantly higher product holdings. For example, one global insurer found that mobile-app active users had 30% higher retention. CARE doesn't immediately add billions in new premiums like embedded or usage-based might, but it supercharges profitability through loyalty and share-of-wallet. Moreover, it addresses a key consumer expectation: in 2025, people demand ongoing value, not just a policy document in a drawer. Digital transformation aims to fully integrate technology into all aspects of the insurance business, making CARE models even more effective. Sustained customer interest is key to maximizing the value of continuous engagement models. The industry commentary notes that the shift from "annual renewals to continuous engagement” is crucial for relevance.

Real-world examples

USAA turned insurance into a membership decades ago, and now digital players follow suit. Metromile (now part of Lemonade) introduced a subscription-esque car insurance with a low monthly base rate plus per-mile charges – customers could cancel anytime, like a valid subscription, which pressured competitors to offer more flexible terms. Prudential in Asia launched Pulse, an app that keeps customers engaged with health tips, challenges, and telehealth services, creating daily touchpoints rather than annual ones. Even incumbents like State Farm and GEICO send regular driving feedback, safe driver challenges, and home maintenance reminders via their apps. By treating customers more like subscribers who need ongoing care and communication, insurers not only increase satisfaction but open the door to upselling additional coverage when life changes (new car, new home, etc.). The CARE model provokes insurers to behave less like stodgy contract issuers and more like proactive service providers.

10. TRIBE – Trust-Based Risk Pooling

What is this?

A return to insurance's roots: people pooling risk among a community they trust, enabled by modern platforms. TRIBE is often called peer-to-peer insurance. The idea is that a group of individuals (friends, fellow enthusiasts, or a curated community) agree to collectively cover each other's losses up to a point, often with a small insurer or platform organizing it. If there are leftover funds (i.e., few claims), the group might share the savings (cashback or donations to charity) instead of all excess premium going to an insurance company's profit. It leverages social trust – if your tribe stays safe, everyone benefits with lower net cost. Digital platforms and blockchain have made peer-to-peer models easier to manage at scale.

That's TRIBE

• From: Customers feeling adversarial against a big insurer, and premiums being a "use it or lose it" deal.

• To: Community-centric insurance where members feel a shared fate and potentially get money back for good outcomes. The insurer's role shifts to facilitator and reinsurance backstop rather than the sole risk-bearer.

Financial Opportunity: #10 of 10 – niche so far

The P2P concept is intriguing but remains a relatively small slice in 2025. It has been strategically disruptive (it inspired new entrants and forced incumbents to add cashback features), but pure peer-to-peer insurance hasn't overtaken traditional models yet. Estimates peg the P2P insurance market at only a few hundred million dollars today. That said, its real impact is in trust and customer experience: by aligning incentives, it can reduce fraud and claims cost, which could let a TRIBE carrier undercut competitors' prices. Some mutual insurers and reciprocals (a classic model similar in spirit) are modernizing with digital platforms to create "trusted circles" for specialized groups (e.g., tech startup founders pooling D&O risk). As regulatory frameworks evolve (and if blockchain-based decentralized insurance grows), TRIBE models could scale more globally. For now, it's a fascinating but financially modest experiment.

Real-world examples

Lemonade Insurance started with a P2P-inspired model – taking a flat fee and pooling customers' premiums, then donating leftover funds to charities chosen by the user's “peer groups.” This trust-based approach (and a slick AI-driven app) helped Lemonade attract millions of users and prompted incumbents to copy elements of its model. In London, one of the startups I accelerated through the Startupbootcamp is LAKA, which transformed how mobility insurance is done. It uses a people-powered insurance subscription to make insurance fair, not fixed. In Germany, Friendsurance pioneered a peer group cashback: small groups pay part of each other's minor claims; any unused pool at year-end is shared back as cash. Major insurer Allianz even partnered with Friendsurance to offer this model for a time. Platforms like Teambrella and mutual-style communities on blockchain (e.g., Nexus Mutual for crypto risks) show how TRIBE insurance can take new forms. While no global giant has fully “gone P2P,” many are watching and learning – recognizing that in an age of eroded trust, leveraging social networks and transparency could be key to winning the next generation of customers.

Visual framework idea

Insurance leaders can use a From–To chart to summarize these shifts, or a table mapping each acronym to its key concept, old vs. new approach, and an example. Presenting information in a clear order helps executives quickly grasp the key differences between models.

For instance, a table could list HIDE (Embedded) moving from standalone sales to integrated point-of-sale offerings, or ZIP (Parametric) from lengthy claims to instant payouts. Such a visual can quickly convey how dramatically the landscape is changing.

Executives might also visualize these models on a matrix of impact vs. time horizon—with Embedded (HIDE) and Usage-Based (METER) models already delivering huge financial results, and models like Peer-to-Peer (TRIBE) still emerging but worth monitoring. The acronyms form a handy toolkit—a provocative checklist for any insurer's innovation strategy.

The message is clear.

Insurance in 2025 is breaking out of its old confines. The most disruptive models are those that meet customers where they are (online, on the go), use technology and data in smart ways, leveraging advanced software to enable these transformative changes, and even turn the insurance value proposition upside down (from paying claims to preventing them, from one policy to continuous service, from company-centric to community-centric). Leading global players and ambitious insurtech startups alike are already deploying these models.

Business models help companies attract investment, recruit talent, and motivate staff, making them essential for navigating this transformation. The financial stakes are enormous for those who get it right – and existential for those who lag. For insurers and founders, the call to action is to embrace these new models boldly. The future of insurance will belong to those who can HIDE in every sale, METER every risk, BITE every niche, ZIP every claim, be the ONE hub, PREP their customers, play GHOST when needed, foster a TRIBE, show CARE constantly, and craft coverage as a personal MOSAIC.

In short: innovate now, or risk becoming a cautionary tale in the next thought-leadership piece. Industry media and technology analysts closely follow the evolution of insurance business models. The insurance revolution is underway – and it's truly transformative.

Sources: The above analysis is built on insights from industry reports and real-world cases, including an EY Global Insurance Outlook, strategic briefs for insurers, BCG and Q2 2025 insurtech investment reports detailing partnerships and product launches (e.g., PingAn, Cover Genius & TAL's embedded life product, Stellantis's embedded motor insurance with Wrisk, and Tokio Marine's parametric venture).

These examples underscore that the transformation is not theoretical – it's happening now, across markets and lines, as the industry races toward new horizons. Each model carries risks and execution challenges, but one thing is sure: standing still is not an option. The insurance executives of today must be the architects of disruption, not the victims. The opportunities – financial and strategic – are simply too great to ignore.

Click the link to engage and explore how the Alchemy Crew Team can help you dive into the latest insurtech breakthroughs – safely, strategically, and impactfully. The insurance revolution is here. And with the right approach, you can turn the disruption into your competitive edge.

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