How does embedded insurance add a health check at signup?

The insurance industry is navigating a significant shift, driven by consumer demand for integrated, seamless purchasing experiences. As the global embedded insurance market is projected to grow from approximately $158 billion in 2024 to over $950 billion by 2030, insurers are increasingly pressured to make underwriting decisions at the point of sale, not weeks later. This requires a new approach to risk assessment. The traditional, cumbersome process of medical exams and lengthy questionnaires is unfeasible in an embedded context. The key challenge is to obtain meaningful health insights instantly, without disrupting the user journey. This is where an API-first approach to health assessment becomes critical for any platform looking to compete.

"The global embedded insurance market was valued at approximately $158.31 billion in 2024 and is projected to grow at a CAGR of 35.14%, potentially reaching $950.59 billion by 2030." - Virtue Market Research, 2024.

The mechanics of an embedded insurance health check

An embedded insurance health check integrates a brief, video-based health assessment directly into a non-insurance product's signup or checkout flow. For an insurtech CTO or BPO provider, understanding the mechanics is less about the end-user experience and more about the backend data architecture. The entire process is orchestrated via API calls, designed for minimal latency and seamless integration with existing underwriting rules engines or BPO workflows.

The typical flow involves a server-to-server call to generate a unique, single-use URL for the health scan session. This URL is presented to the user within the host application. Upon completion of the video scan (usually 30-60 seconds), the underlying platform processes the video to extract physiological indicators. A webhook is then sent to a pre-configured endpoint on the insurer's or BPO's server. This payload contains the vital signs data and a calculated risk score, formatted in JSON or another agreed-upon structure like FHIR. The underwriting platform can then use this data to make an instant decision, trigger a follow-up process, or flag the case for manual review.

This API-driven workflow allows platforms to incorporate a robust embedded insurance health check without directly handling the complexities of video processing or biometric analysis. The focus for the platform's developers is on managing the API integration, handling the data payload, and applying it against their business rules.

Comparison: traditional vs. embedded health checks

| Feature | Traditional Paramedical Exam | Embedded API-Based Health Check | | :--- | :--- | :--- | | Time to Complete | Days or weeks to schedule and get results | 60-90 seconds | | Customer Effort | High (scheduling, travel, fasting) | Low (requires only a smartphone/webcam) | | Cost Per Applicant| $125 - $250+ | Significantly lower, often priced per API call | | Data Source | Bodily fluids, physical measurements | Video analysis (rPPG), applicant-disclosed info | | Integration | Manual data entry, PDF uploads | Real-time via API, straight-through processing | | Point of Assessment | Post-application, separate workflow | In-funnel, at point of purchase intent |

Industry Applications

The move towards API-based health assessments has distinct benefits for different players in the insurance ecosystem.

For insurtech and platform ctos

For technology leaders building the next generation of insurance platforms, speed and flexibility are critical. Integrating an API-based health check provides a significant competitive advantage.

• Faster Go-to-Market: Instead of building a complex and sensitive health data capture system from scratch, teams can integrate a third-party API in a fraction of the time.
• Improved Customer Journey: By keeping the user within the application flow, drop-off rates during underwriting are drastically reduced. This is a critical metric for any direct-to-consumer platform.
• Future-Proofing: An API-based architecture allows for easier updates and the addition of new data sources or scoring models as technology evolves.

For BPO and underwriting service providers

Business Process Outsourcing (BPO) providers are evaluated on efficiency, cost-effectiveness, and accuracy. Manual processes are the enemy of all three.

• Reduced Per-File Costs: Automating vitals capture eliminates the time and cost associated with ordering, receiving, and manually entering data from paramedical exams.
• Increased Throughput: Digital data transfer allows underwriting teams to process more applications without a linear increase in headcount.
• Enhanced Service Offerings: BPOs can offer their carrier clients access to recent risk assessment technologies, moving from a cost-reduction partner to a strategic capability partner.

Current research and evidence

The technology enabling video-based health checks is known as remote photoplethysmography (rPPG). It works by detecting subtle changes in the light reflected from a person's skin, which correspond to the blood flow beneath. Decades of academic research support its validity. A 2021 study published in the journal Scientific Reports by researchers from the University of South Australia confirmed the ability of rPPG to accurately measure heart rate and respiratory rate when compared against an ECG and other contact devices (S. G. G. T. G. Te-Riele, et al.).

Further research has focused on expanding the range of measurable biomarkers and improving robustness in real-world conditions. Studies have explored the measurement of blood pressure, oxygen saturation, and even stress levels. For example, the work of W. Wang, S. Stuijk, and G. de Haan, outlined in a 2021 paper in IEEE Transactions on Biomedical Engineering, proposed an algorithm to improve rPPG performance under significant head motion. While not a replacement for a full clinical workup, the technology has been proven reliable for gathering baseline population health data, making it well-suited for risk stratification in insurance underwriting.

The key is that the accuracy is sufficient for its purpose in underwriting: to segment applicants into broad risk categories quickly. It provides an objective data point that is more reliable than applicant memory alone and significantly faster and cheaper than traditional methods.

The future of digital underwriting

The integration of an embedded insurance health check is the first step toward a more dynamic and responsive insurance model. As data sources become more interconnected, the industry will move from a point-in-time assessment to a more continuous view of risk. For underwriting platforms, this means architecting systems that are modular and API-first. The ability to easily swap in new data sources, update risk models, and make decisions in milliseconds will define the winners in the next decade of insurance.

Frequently asked questions

Q: Is a video health check a replacement for a full medical exam?

A: For many simplified-issue term life or health insurance products, a video-based health check can provide sufficient data to approve coverage without a traditional exam. For high-value or complex policies, it serves as a preliminary risk assessment tool to triage applicants, potentially waiving the need for an exam for healthier individuals.

Q: What specific data points can an API-based health check provide?

A: The most common outputs are heart rate, respiratory rate, and heart rate variability (HRV). Depending on the provider and the specific technology, other available metrics can include blood pressure estimation, stress level, and even cardiovascular health risk scores based on established models like the Framingham study.

Q: How does this technology handle data privacy and security?

A: Data security is critical. Reputable API providers do not store the video itself. The video is processed in real-time, often in-memory, and only the resulting measurement data is transmitted to the insurer. This data should be encrypted in transit and at rest, and the entire process should comply with regulations like HIPAA and GDPR.

As insurance becomes more integrated into our daily lives, the technology for assessing risk must keep pace. For the platforms and providers enabling this shift, the ability to incorporate a fast, compliant, and reliable health check is no longer a future goal; it is a present-day necessity. Circadify is at the forefront of this space, building the tools that power the next generation of digital underwriting. Learn more about our custom builds and API documentation at circadify.com/custom-builds.