Imagine it’s a Saturday morning. You wake up, realize your dog hit his leg last night, and glimpse a $2000 vet bill ahead. What if insurance didn’t already lock you into a premium for a full year and coverage you don’t need? instead, you open your app, activate coverage for this one visit, and pay only for that moment?
You might think this is fiction, but this is where modern insurance is headed. In 2024, the global usage-based insurance hit around $62.4 billion, and by 2033 it is said to grow up to $355 billion, growing more than 20% annually. Numbers like these tell a story about usage-based insurance. Consumers want insurance that adapts to real behaviour, whether it’s driving less or just seeking vet coverage for one trip.
The Engine Underneath
Before we get into the tech behind it, it’s worth looking at where this shift is really gaining more popular. North America is leading the way when it comes to usage-based insurance as the region is the best fit because of the tech savvy population, higher smartphones adoptions and growing urban density. 90% of North Americans are internet users as of 2024, and smartphone penetration reached 77% in 2023, projected to cross 80% by 2027—making North America the most mobile-ready insurance market globally. All these conditions make it easier to collect data, customize policies and deliver insurance that switches on exactly when people need it. This ecosystem, where consumers expect on demand everything and insurer have the tools and capabilities to deliver, drives a serious momentum in both travel and pet insurance too.
It starts with data.
Think of pet wearables like GPS collars, sensors, and activity trackers. These devices can live stream information that can flag suspicious behaviors, prompting coverage on time, or even trigger pre-approved claims. One great example is how Trupanion, a well-known carrier, built its model around pay-per-visit vet services. Through their system, VetDirect Pay, clinics get paid directly at the time of the pet’s treatment. The tech quietly runs in the background, with no paperwork or delay, flipping on the cover when needed and handling claims in real time.
Contextual Triggers make it personal
Consider this: a customer books a holiday through a travel site, and travel insurance can be offered right there, with destination-based customization. Expedia Group is piloting this with its B2B “Insurance API”, letting partner platforms offer trip protection directly in the booking journey, which includes Flights, hotels, and cars. All without making the user leave the page with the help of a sophisticated API workflow in action. It can calculate coverage based on destination, trip length, passenger profile, and price it dynamically. It is fast, embedded, and context-aware. Pets Best has also done something similar with their Enrolment API, letting partners, which could be an e-commerce site, a pet adoption portal, or a vet clinic, embed pet insurance directly into the checkout flow. It shows real-time quotes, generates policies instantly, and even collects payment all within the same user journey.
Now layer in smart APIs
With the help of Modern Insurance, the single event of booking a flight can trigger a chain rection like quote generation, bind, coverage activation and even real time travel alerts, all with the help of APIs. That’s the type of backend infrastructure MGAs can build with the help of right tech, which enables fast deployment across travel, pet and niche lines.
What does this Mean Strategically?
Granularity wins. For carriers and MGAs, this brings up an opportunity to sell modular products triggered by life moments rather than pushing annual plans. This means lower CAC, better personalization, and new data streams to make the underwriting and claims process faster and sharper. It also allows them to diversify revenue through micro premiums from frequent and small ticket activations. This can add up, especially when it’s embedded inside platforms they already use. The more targeted the offer, the higher the perceived value is, because you’re not asking customers to pay for what they might never use.
When a coverage is activated based on real-time data and behaviour, the claims get smarter too. Pre-approved limits, one-click approvals, and direct-to-provider payments reduce friction and redirects. For the buyers, it’s finally intuitive. They are getting the cover when it makes sense, not months in advance. And because it’s embedded and context-aware, the whole journey feels less like insurance and more like support that shows up when needed. Insurance isn’t something people wake up wanting to buy, but when it’s a part of the process and comes up naturally, right when they are booking a flight or visiting a clinic, it feels timely and useful. That’s how you drive adoption, by making it fit into moments, into ecosystems, into lives.
Ardra Girish
Growth Specialist
