Embedded Insurance Market: Everything You Need to Know
Posted on 07-March-2024
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:
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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)
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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.
