The Hidden Cost of Embedded Insurance Models

Fintech Conversations with Fexingo: Banking, Payments, and Financial Software Companies · Sep 30, 2026 · 10m · transcript

Embedded insurance is supposed to make protection seamless, but who actually bears the risk when algorithms underwrite policies in real time? We look at how fintech platforms are shifting liability away from traditional carriers and onto the merchants themselves. With regulatory scrutiny rising in late 2026, we examine a specific case where a major payment processor had to restructure its coverage terms after a spike in claim disputes. Lucas breaks down the unit economics of micro-policies, while Luna asks whether consumers even understand what they're buying when it's bundled with…