Embedded Insurance Market: Everything You Need to Know

What is embedded insurance?

Embedded insurance seamlessly integrates insurance coverage into the purchase journey of non-insurance related products and services. This means you can get insurance for specific needs at the point of sale, without a separate application process.
 

Embedded Insurance: How does it work?

Imagine booking a flight. Traditionally, travel insurance would be a separate purchase. With embedded insurance, the option to add travel insurance appears during the booking process, allowing you to bundle it conveniently with your flight ticket.

Benefits of embedded insurance:

• Convenience: Purchase insurance alongside your primary product or service, saving time and effort.
• Accessibility: Get relevant coverage you might not have considered otherwise.
• Potential cost savings: Bundled insurance can sometimes be more affordable than separate policies.
• Increased engagement: Businesses can offer unique value propositions and improve customer loyalty.
 

Examples of embedded insurance:

• By product/service:

  • Travel insurance (embedded during flight booking)
  • Phone insurance (bundled with phone purchase)
  • Rental deposit insurance (included in lease agreements)
  • On-demand insurance (coverage for specific periods, like renting a bike)
  • Pay-as-you-go insurance (insurance priced based on usage, like car insurance based on miles driven)
     

• By industry:

  • Retail: Product protection plans, extended warranties
  • Travel: Flight cancellation insurance, baggage delay protection
  • FinTech: Purchase protection for online transactions
  • Logistics: Cargo insurance, shipment protection
     

Market size and growth:

The global embedded insurance market was valued at $78.7 billion in 2023 and is expected to reach $175.2 billion by 2030, with a compound annual growth rate (CAGR) of 11.63%.

• North America: Estimated to reach $35.2 billion by 2030, with a CAGR of 11.02%.
• Asia-Pacific: Expected to reach $67.7 billion by 2030, with a CAGR of 11.45%.

The global market for embedded insurance in travel and hospitality is expected to grow to $37 billion by 2030.
 

Top companies in embedded insurance:

• Travelers Insurance
• Cover Genius
• Metromile
• Qover
• Hokodo Services
• ELEMENT Insurance
• Bsurance
• Simplesurance
• Kasko
 

Future of embedded insurance:

Embedded insurance is expected to become increasingly common, with:

• Expansion into new industries: Look for embedded insurance in areas like healthcare, education, and automotive.

• Technological advancements: Expect further integration with platforms and the use of AI for personalized policies.

• Regulatory considerations: As the market evolves, regulations might need to adapt to ensure consumer protection.