Embedded Insurance: Redefining Protection in a Seamless World

The Future of Insurance, Seamlessly Integrated

The way people interact with insurance is evolving at an unprecedented pace. Gone are the days when insurance was seen as a standalone product—complex, time-consuming, and often disconnected from the lives and activities of its users. Today, we are witnessing a transformational shift: insurance is no longer bought; it’s embedded. This change is not just about simplifying access; it’s about fundamentally redefining how, when, and where insurance delivers value.

At the heart of this revolution lies embedded insurance, a model that integrates insurance directly into products and services people use every day. Whether booking a trip, purchasing a car, or signing up for a subscription, customers now expect frictionless, context-relevant protection tailored to their needs. This seamless integration doesn’t just enhance convenience—it creates new opportunities for businesses to build loyalty, innovate their offerings, and increase revenue streams.

In this article, we’ll explore the game-changing potential of embedded insurance, unpack its key trends, and examine real-world use cases. By the end, you’ll see why this model isn’t just a trend—it’s the future of insurance distribution. Let’s begin with how embedded insurance is reshaping the industry landscape.

Embedded Insurance: A Game-Changer

Let's start with a definition!

Embedded Insurance refers to the seamless integration of insurance products or services into a consumer’s purchase journey, through non-insurance platforms, ecosystems, or distribution channels. Rather than being sold as a standalone product, insurance is included as a natural, often invisible, part of another transaction or experience.

This approach is designed to make insurance:

?? Convenient: Delivered when and where it’s most relevant to the customer.

?? Contextual: Tailored to the specific product or service being purchased, addressing risks associated with it.

?? Effortless: Minimal friction for the customer, with enrollment often requiring just a click or no action at all.

Key Characteristics of Embedded Insurance

?? Insurance Distribution Channels: Sold via third-party platforms (e.g., e-commerce, mobility apps, fintech platforms).

?? Driven: Powered by APIs and digital platforms that enable integration and real-time underwriting.

?? Customer-Centric: Focused on enhancing customer experience by reducing complexity and improving accessibility.

Example: Imagine buying a smartphone online, and as part of the checkout process, the retailer offers theft or damage insurance pre-selected or as a simple add-on. You don’t have to navigate a separate process to protect your device—it’s built into the transaction.

Embedded insurance transforms insurance from a product people seek out to a solution they encounter naturally when they need it most.

We’re living in a world where convenience is king. Embedded insurance brings this principle to the insurance industry—delivering protection when, where, and how people need it most.

Now that we’ve unpacked what embedded insurance is, let’s explore the many forms it can take - each designed to meet customers where they are, with the coverage they need.

Types of Embedded Insurance: Meeting Customers Where They Are

Insurance is no longer a one-size-fits-all solution. Embedded insurance can take on multiple forms, tailored to match diverse customer journeys. Here are the key approaches:

1?? "The Invisible Hero” (Truly Embedded Insurance)

Insurance is seamlessly included in the product or service without requiring any additional action from the customer. It’s “invisible” yet functional.

Features:

• Automatically included in the price of the product or service.
• No opt-in or opt-out required by the customer.
• Often pre-negotiated between the insurer and the partner platform.

Example: A ride-hailing app automatically provides accident or injury coverage for passengers during trips, included in the cost of the ride.

2?? Bundled with Opt-Out

Insurance is pre-selected and included in the offering by default, but customers can actively choose to remove it (opt-out) if they don’t want the coverage.

Features:

• Default selection simplifies decision-making for most users.
• Customers maintain the option to decline coverage.
• Often used in e-commerce or travel platforms.

Example: When purchasing a flight ticket, travel insurance for trip cancellations or medical emergencies is pre-selected, but the customer can uncheck the option if they choose.

3?? “Pick-and-Choose Coverage” (Bundled with Opt-In)

Insurance is presented as an add-on during the purchase process, requiring the customer to actively choose it (opt-in).

Features:

• Insurance is offered as an optional add-on.
• Requires the customer to take action to include it.
• Usually suitable for more customized or discretionary coverages.

Example: A customer buying a car online is offered extended warranty coverage at checkout, but they must check a box or select it to add it to their purchase.

These models aren’t just innovative; they reflect a profound shift towards simplicity and customer-centricity.

4?? You need it? You have it! (Modular or On-Demand Insurance)

This approach allows customers to activate insurance coverage only when they need it, typically through an app or digital interface.

Features:

• Flexible and temporary, activated for specific periods or use cases.
• Often used for mobility, travel, or short-term needs.

Example: A cyclist activates liability insurance via a mobile app for just a few hours while using a shared bike.

5?? Post-Purchase Embedded Offers

Insurance is suggested after the main transaction is completed, integrated into post-purchase engagement.

Features:

• Presented through follow-up emails, app notifications, or account dashboards.
• Aimed at enhancing the product or service’s value.

Example: After buying a laptop, the retailer sends a notification offering accidental damage insurance.

Key Factors in Choosing an Approach

The choice of approach depends on:

• Customer behaviour: Preference for convenience or customization.
• Regulatory environment: Some jurisdictions restrict opt-out mechanisms.
• Partner platform: The digital or operational capabilities of the ecosystem partner.
• Product complexity: Simplified approaches (truly embedded) work best for low-cost, low-risk products, while opt-in may be better for complex coverages.

Each approach has its role in aligning insurance distribution with customer needs, reducing friction, and maximizing conversion rates.

From Paper to Digital: The Evolution of Embedded Insurance

The concept of embedding insurance is not entirely new but has evolved significantly in its application and sophistication over time. From the clunky manual processes of the past to the seamless ecosystems of today, embedded insurance has traveled a remarkable journey of reinvention.

?? The Pre-Digital Era (Before 2000s)

Insurance as a Complementary Add-On

Approach: Insurance was often bundled with products, but the process was manual and limited by physical distribution.

Examples:

• Banks offering life insurance tied to mortgage loans.
• Travel agencies selling trip insurance with vacation packages.

Key Characteristics:

• Insurance was offered as an upsell, usually through human agents.
• Processes were paper-based, with limited integration into the product journey.
• Trust in intermediaries played a central role.

Challenges:

• High friction: Lengthy forms, in-person interactions.
• Lack of seamlessness and integration.

?? The Early Digital Era (2000s to 2010s)

Digitalization and the Rise of Online Distribution

Technological Drivers:

• Internet penetration and the emergence of e-commerce platforms.
• Insurers began to partner with digital channels to sell policies.

Examples:

• Airlines offering travel insurance at the checkout stage (opt-in or opt-out).
• Retailers integrating extended warranties into online purchases.

Key Characteristics:

• Insurance became a visible but relatively easy add-on.
• The process was simplified but still required action from customers (opt-in).
• Regulatory shifts started shaping the use of opt-out mechanisms in certain markets.

Challenges:

• Limited contextualization: Offers weren’t always tailored to the customer’s needs.
• Fragmented customer experiences due to separate platforms for insurance and primary purchases.

?? The API Revolution and Insurtech Boom (2010s to 2020s)

The Rise of Embedded Insurance as We Know It

Technological Drivers:

• The growth of APIs enabling seamless integration between insurers and third-party platforms.
• Insurtechs disrupting traditional models with innovative, customer-centric solutions.
• Cloud computing, big data, and AI powering real-time underwriting and personalization.

Examples:

• Uber automatically including passenger and driver insurance in every ride.
• Fintech platforms offering payment protection insurance during loan approvals.
• Amazon embedding extended warranties into its product pages.

Key Characteristics:

• Insurance began to “disappear” into the customer journey.
• Tailored offers became more contextual and relevant.
• Distribution expanded beyond traditional sectors to mobility, e-commerce, and IoT.

Challenges:

• Regulatory compliance in integrating insurance into non-insurance ecosystems.
• Balancing transparency with a frictionless experience.

?? The Era of Ecosystems and Embedded Insurance 2.0 (2020s Onward)

Customer-Centric Ecosystems and Beyond

Technological Drivers:

• Ecosystem thinking: Businesses creating interconnected platforms that deliver holistic solutions (e.g., super apps like WeChat).
• IoT and real-time data integration: Enabling usage-based and behavior-driven insurance models.
• Open insurance frameworks: Allowing standardized data sharing across ecosystems.

Examples:

• Tesla embedding auto insurance directly into its car purchase and leasing options.
• IoT-enabled home insurance that adjusts premiums based on real-time sensor data.
• “Buy Now, Pay Later” platforms offering purchase protection within their services.

Key Characteristics:

• Focus shifted from selling insurance to creating value and solving customer pain points.
• Embedded insurance became part of a broader ecosystem strategy, often invisible but omnipresent.
• Increased personalization and risk-based pricing using AI and machine learning.

Current Challenges:

• Integration complexity with legacy systems of insurers.
• Ensuring customers remain aware of the insurance they have (transparency).
• Maintaining trust and privacy in data-driven models.

What started as a manual add-on has become an invisible enabler of peace of mind in our digital lives.

The Path Forward

Embedded insurance continues to evolve with advancements in technology and shifts in consumer expectations. Future developments may include:

• Greater integration into AI-driven ecosystems.
• Wider adoption of blockchain for seamless claims processing and transparency.
• Expansion into emerging markets where digital platforms are leapfrogging traditional insurance models.

This evolution showcases how embedded insurance has shifted from a manual, upselling tactic to a seamless, technology-driven approach that empowers customers and creates new opportunities for insurers and their partners.? It’s a story of evolution—from paper forms to digital ecosystems. But where is it making the biggest waves today? Let’s dive into the sectors where this innovation is transforming customer journeys.

Embedded Insurance in Action: Where It’s Making a Difference

Certain industries are particularly well-suited for embedded insurance due to their inherent risks, frequency of transactions, and alignment with consumer needs. Here are the stars of this transformation, grouped by Size:

?? Financial Services

Size Very Large | Maturity High

Why It’s Prone:

• Alignment with risk management.
• Access to large customer bases through digital platforms.

Opportunities:

• Loan Protection: Embedding credit life or unemployment insurance with personal or business loans.
• Digital Banking: Bundling cybersecurity insurance for digital accounts or transactions.
• “Buy Now, Pay Later” (BNPL): Adding payment protection for purchases made on BNPL platforms.

Examples:

• BNPL Platforms: Klarna includes purchase protection for its “Buy Now, Pay Later” service.
• Credit Card Insurance: American Express embeds travel and purchase protection into premium cardholder benefits.
• Mortgage Protection: Nationwide bundles life insurance with mortgage applications
• Motor related insurance: Credibom: sells several Motor related insurance products through different channels in partnership with Habit.??

?? Telcos

Size Large | Maturity Medium

Why It’s Prone:

• Large Customer Base: Telcos interact with millions, if not billions, of customers globally, making them ideal distribution partners.
• Digital Ecosystems: Many telcos already operate through apps, online platforms, and partner networks, simplifying API integration for embedded insurance.
• Frequent Touchpoints: Monthly bills, service upgrades, and device purchases create natural opportunities for offering insurance.
• Trust and Familiarity: Customers already trust telcos with payments and services, easing concerns about buying insurance through them.

Opportunities:

• Device Protection Plans: Insurance for smartphones, tablets, and laptops bundled with device purchases or subscriptions.
• Microinsurance for Low-Income Customers: Telcos in emerging markets embedding life or health microinsurance into prepaid or postpaid plans.
• IoT-Driven Insurance: Telcos enabling smart home insurance by leveraging IoT devices connected through their networks.
• Gig Economy and Freelance Coverage: Telcos offering liability and income protection insurance for gig workers who use mobile internet to conduct their work.
• Travel and Roaming Insurance: Short-term travel insurance or health coverage for international roaming customers.
• Health and Wellness Add-Ons: Subscription health plans embedded in mobile plans, including telemedicine or mental health consultations.

Examples:?

• Device Insurance: Vodafone offers smartphone insurance embedded into their phone contracts.
• Microinsurance for Low-Income Customers: MTN (Africa) embeds hospital cash insurance with airtime plans.
• Broadband Bundles: Telefonica integrates device warranties and cyber insurance with broadband subscriptions.
• Triggered Device Protection: NOS with Habit is offering triggered device protection for any device that connects for the first time to its network
• Triggered Travel Insurance:? NOS with Habit pushes Travel Insurance when a client starts roaming?

?? Mobility and Transportation

Size Large | Maturity High

Why It’s Prone:

• Frequent transactions (e.g., ride-hailing, car rentals, public transit).
• Clear risks tied to the activity (accidents, liability, vehicle damage).

Opportunities:

• Ride-Hailing and Car-Sharing: Offering usage-based insurance for drivers and passengers (e.g., Uber provides automatic passenger insurance for every trip).
• Electric Scooters and Bikes: Embedding liability or theft insurance with rental services.
• Auto Sales and Leasing: Bundling auto insurance directly into the car purchase or lease process (e.g., Tesla offers embedded auto insurance).

Examples:?

• Ride-Hailing: Uber includes passenger accident coverage for every trip.
• Car Sales: Tesla embeds auto insurance into its car purchase options in the US and China.
• E-Scooters: Lime automatically includes liability insurance for riders in several European countries.
• Car Sales: Habit offering Motor and Breakdown Insurance? to a vast audience of car dealers in its partnership with Pisca Seguros.
• E-Scooters and Bikes: Norauto sells Bike and e-scooter insurance through a QR code in their network of mobility powered by Habit.

?? Retail and E-Commerce

Size Large | Maturity High

Why It’s Prone:

• High volume of consumer purchases.
• Demand for warranty, theft, and damage protection.

Opportunities:

• Product Warranties: Retailers offering extended warranties for electronics or appliances (e.g., Amazon embedding protection plans during checkout).
• Purchase Protection: Embedded theft or damage insurance for high-value items like smartphones, jewelry, or furniture.
• Subscription Models: Offering protection for recurring purchases or services (e.g., eyewear insurance with online optometry services).

Examples:?

• Extended Warranties: Amazon embeds device protection plans at checkout.
• Product Insurance: Flipkart (India) offers mobile and appliance insurance directly through its platform.
• Purchase Protection: Deporvillage (EU) offers Mobility (bikes and e-scooters) and Gym equipment insurance with in-store sales with Habit.?
• Health Plans:? Auchan sells Health Plans in Portugal, through several channels, powered by Habit.

?? Healthcare and Wellness

Size Large | Maturity Medium

Why It’s Prone:?

• Increasing digital health adoption.
• Consumer demand for personalized health solutions.

Opportunities:

• Telemedicine Platforms: Embedding subscription-based health plans or insurance for medical consultations.
• Fitness Apps and Gyms: Coverage for injuries or equipment damage tied to fitness programs.
• Wearables: Insurance linked to real-time health data from devices like smartwatches or fitness trackers.

Examples:

• Telemedicine Plans: Teladoc Health offers subscription-based tele-health plans that include embedded insurance.
• Fitness Apps: ClassPass embeds injury protection for gym-goers and class participants.
• Wearable Integration: Vitality uses health tracker data to adjust embedded health insurance premiums.
• Health Subscription Services: ?Luz Saúde (a major Healthcare provider in Portugal) offers a Symptom Checking platform and distributes several Subscription services, through Habit.

?? Home and Property

Size Large | Maturity Medium

Why It’s Prone:

• Rising demand for smart home technology and short-term rentals.
• Broad applicability for both owners and renters.

Opportunities:

• Smart Home Devices: Bundling home insurance with IoT devices (e.g., leak detectors, security cameras).
• Rental Platforms: Embedding short-term rental insurance for hosts and guests (e.g., Airbnb offering liability coverage).
• Utility Services: Insurance for appliances or services like heating and plumbing.

Examples:

• Smart Home Insurance: State Farm partners with IoT providers to embed home insurance with smart devices like water leak sensors.
• Short-Term Rentals: Airbnb embeds host liability insurance in every booking.
• Appliance Insurance: Lowe’s offers appliance protection plans embedded into product sales.

?? Cybersecurity and Technology

Size Large | Maturity High

Why It’s Prone:

• Increased reliance on digital infrastructure.
• Growing threats from cyberattacks and data breaches.

Opportunities:

• SME Platforms: Offering cybersecurity insurance to small businesses managing sensitive customer data.
• Consumer Tech: Embedding personal data protection insurance with antivirus or VPN services.
• Fintechs: Adding fraud or identity theft coverage for financial apps.

Examples:

• Small Business Protection: Hiscox partners with tech platforms to embed cyber insurance for SMEs.
• VPNs and Digital Tools: NordVPN bundles personal data protection insurance with subscriptions.
• Fintechs: Revolut embeds fraud and identity theft insurance in its premium accounts.

?? Logistics and E-Commerce Delivery Platforms

Size Large | Maturity Medium

Why It’s Prone:

• High volume of transactions with inherent risks (e.g., lost, damaged, or delayed shipments).
• Direct engagement with consumers and businesses through shipping services.

Opportunities:

• Shipping Insurance: Automatic or optional coverage for lost or damaged packages during delivery.
• Business Coverage: Offering liability insurance to small businesses shipping goods via logistics platforms.
• Gig Worker Protection: Insurance for delivery drivers covering accidents, theft, or income loss.

Example:?

• Package Insurance: DHL embeds shipment protection for lost or damaged goods.
• Gig Worker Protection: Instacart embeds accident and liability insurance for its delivery drivers.
• Retail Shipping Protection: Shopify enables merchants to offer embedded shipping insurance.

?? Energy and Utilities

Size Medium | Maturity Low

Why It’s Prone:

• Frequent billing cycles and strong customer relationships create natural touchpoints.
• Growing adoption of smart meters and IoT-enabled home devices opens opportunities for risk-based and contextual insurance.

Opportunities:

• Utility Bill Insurance: Coverage for unpaid bills due to illness, unemployment, or natural disasters.
• Smart Energy Plans: Bundling home insurance with solar panel installations or green energy upgrades.
• Appliance Coverage: Insurance for major home appliances purchased or serviced via utility companies.
• Climate Risk Coverage: Protection for weather-related risks like floods or power outages tied to utility infrastructure.

Examples:?

• Green Energy Plans: Enel offers solar panel insurance bundled with installation services.
• Utility Bill Insurance: EDF embeds utility payment protection for consumers facing unemployment.
• Appliance Coverage: British Gas offers appliance breakdown coverage embedded in service packages.

?? Travel and Hospitality

Size Medium | Maturity High

Why It’s Prone:

• Risks associated with cancellations, delays, or emergencies.
• Established history of insurance integration.

Opportunities:

• Trip Cancellation Insurance: Embedding travel insurance directly into flight or hotel bookings.
• Health Coverage Abroad: Automatic coverage for medical emergencies during international travel.
• Adventure Travel: Insurance for niche activities like skiing, diving, or hiking.

Examples:?

• Flight Insurance: Ryanair embeds cancellation coverage during ticket purchases.
• Adventure Travel: World Nomads partners with booking platforms to offer activity-specific insurance.
• Health Abroad: AXA embeds emergency medical insurance for international travelers through travel agencies.

?? Gig Economy and Freelancers

Size Medium | Maturity Low

Why It’s Prone:

• Growing workforce with non-traditional employment benefits.
• Need for flexible, on-demand insurance solutions.

Opportunities:

• Income Protection: Embedding loss-of-income coverage for freelancers or gig workers.
• Liability Insurance: Coverage for professionals offering services like cleaning, repairs, or consulting.
• Equipment Insurance: Protection for tools or tech equipment essential for gig work (e.g., cameras for photographers).

Examples:

• Worker Protection: Fiverr embeds liability insurance for freelance service providers.
• Income Protection: Zego offers on-demand motor and income protection insurance for delivery drivers.
• Tool Insurance: Tandem embeds equipment coverage for gig workers like photographers.
• Worker Protection: merytu (the “Uber for temporary gig workers”) embeds temporary workers compensation insurance in all its gigs

?? Gaming and E-Sports

Size Medium | Maturity Low

Why It’s Prone:?

• Rapid growth in digital gaming ecosystems, with high-value assets and regular transactions.
• Gamer communities investing heavily in equipment and in-game purchases.

Opportunities:?

• Gaming Equipment Insurance: Bundling protection for consoles, PCs, and peripherals with purchase.
• In-Game Asset Protection: Coverage for theft or loss of virtual items in massively multiplayer online games (MMOs).
• Esports Player Coverage: Income protection or health insurance embedded into esports tournament fees or contracts.

Example:

• In-Game Asset Protection: Riot Games partners with insurance providers to protect valuable in-game purchases.
• Gaming Equipment: Alienware embeds protection plans for gaming PCs and peripherals.
• Esports Players: ESL Gaming provides embedded income protection for contracted esports professionals.

?? Food Delivery and Quick-Commerce

Size Medium | Maturity Medium

Why It’s Prone:

• High transaction frequency, growing customer bases, and risks tied to food safety and delivery.

Opportunities:

• Order Protection: Coverage for delayed or damaged orders automatically included in the service fee.
• Delivery Driver Insurance: Bundled liability or accident coverage for gig workers delivering food.
• Subscription Perks: Embedding health or travel insurance in premium subscription plans (e.g., Uber One).

Example:

• Order Protection: Uber Eats includes insurance for delayed or damaged food deliveries.
• Driver Coverage: Deliveroo embeds accident insurance for delivery riders.
• Subscription Perks: DoorDash embeds discounted travel and health insurance in premium memberships.

?? Education and Learning

Size Small | Maturity Low

Why It’s Prone:

• Shift towards online learning platforms.
• High investment in tuition and materials.

Opportunities:

• Student Loan Protection: Embedding coverage for inability to repay loans due to unforeseen circumstances.
• Device Insurance: Covering laptops or tablets required for online classes.
• Skill Platforms: Insurance for certifications or training programs to protect investment in education.

Example:?

• Device Insurance: Lenovo partners with educational institutions to embed laptop protection plans.
• Study Abroad Health Insurance: ISIC (International Student Identity Card) embeds health and travel coverage for international students.
• Tuition Insurance: GradGuard offers tuition reimbursement policies embedded into university programs.

?? Events and Ticketing Platforms

Size Small | Maturity Low

Why It’s Prone:

• Ticket buyers often face risks like cancellations or emergencies.

Opportunities:

• Event Cancellation Insurance: Coverage for customers unable to attend concerts, sports events, or festivals due to unforeseen circumstances.
• Performer Coverage: Liability or cancellation insurance for artists or organizers embedded in event contracts.

Example:?

• Event Cancellation Insurance: Ticketmaster embeds refund protection for ticket buyers.
• Performer Coverage: Lloyd’s of London partners with event organizers to embed liability insurance for performers.
• Festival Packages: Eventbrite integrates travel and injury protection for large-scale events.

Key Considerations for Success in These Verticals:

?? Relevance: The insurance must align with the core transaction or service.

?? Simplicity: Minimize friction for the customer, making the experience intuitive.

?? Partnerships: Collaboration with platforms in these sectors is critical for distribution and scale.

?? Personalization: Use data to offer tailored products that meet specific customer needs.

It’s clear that embedded insurance is reshaping industries. But how big can this movement get? Let’s look ahead to the numbers and trends driving its explosive growth.

The Future is Bright: Embedded Insurance by the Numbers

Embedded insurance is poised to grow significantly, driven by evolving consumer behaviors, technological advancements, and innovative partnerships. Here are key predictions and insights into future business volumes, including Gross Written Premiums (GWP), new sales, and market potential:

Market Size and Growth Potential

?? Global Gross Written Premium (GWP):

• By 2030, embedded insurance could contribute up to 20% of global insurance sales, equating to approximately $3 trillion in GWP, according to the Open & Embedded Insurance Observatory.

?? New Business Potential:

• Embedded insurance could generate $500 billion in new business premiums by addressing currently unmet consumer needs (e.g., mobility, gig economy, and on-demand coverage).
• Products targeting underserved markets (e.g., low-income segments, digital-first consumers) will be key drivers - bridging the protection gap.
• Conversion Boost - embedding insurance into purchase journeys increases conversion rates by up to 5-10x compared to standalone insurance sales.

Example: Simplified add-ons (e.g., travel insurance at checkout) see take-up rates of 30-40%, compared to ~5% via traditional methods.

?? Growth Rate:

• The embedded insurance market is projected to grow at a compound annual growth rate (CAGR) of 20-25% over the next decade, outpacing traditional insurance growth.

Potential by Region

?? Europe:

• Expansion driven by regulatory alignment (e.g., Open Insurance frameworks) and high penetration of digital ecosystems.
• Predictions suggest embedded insurance could capture 25-30% of new digital insurance distribution channels by 2030.

?? North America:

• Early adoption in fintech, mobility, and e-commerce sectors will likely drive $1 trillion+ in embedded premiums by 2030.
• Big tech and retail players (e.g., Amazon, Tesla) are expected to dominate.

?? Asia-Pacific:

• Digital adoption and super-app ecosystems (e.g., Grab, WeChat) position the region as a key market for rapid growth, particularly in mobility, health, and e-commerce insurance.

By 2030, embedded insurance could become as ubiquitous as the apps on our phones—generating trillions in premiums and redefining access to protection.

Product and Vertical-Specific Predictions

?? Mobility Insurance:

• Usage-based and embedded mobility insurance (e.g., for ride-hailing, e-scooters) is expected to grow by $50 billion annually by 2030, particularly in urban centers.

?? E-Commerce Warranties:

• Extended warranties and theft protection could reach $200 billion in annual GWP, driven by the growth of online shopping.

?? Health and Wellness:

• Embedded health plans and telemedicine subscriptions could capture $100 billion annually as digital health adoption accelerates.

Impact of Technology on Business Volumes

?? Artificial Intelligence (AI):

• Predictive models and real-time data will drive personalized offers, boosting sales and reducing churn.

?? Internet of Things (IoT):

• IoT devices (e.g., smart homes, wearables) could enable insurers to capture $300 billion in premiums by leveraging usage-based and real-time pricing models.

Long-Term Outlook (Beyond 2030)

• Embedded insurance could evolve into a default model for insurance distribution, making standalone purchases the exception.
• Potential exists for super-app ecosystems to act as dominant distributors, further consolidating market share.
• Industry shifts may result in 50% of all digital insurance sales being embedded by 2040.

Strategic Implications for Stakeholders

Insurers:

• Must adapt to API-driven and partnership-centric models to remain competitive.
• Capturing embedded opportunities could drive 30-50% of their new revenue streams over the next decade.

Partners/Platforms:

• Ecosystem players (e.g., fintechs, e-commerce giants) stand to benefit from ancillary revenue streams generated by embedded offerings.

A Vision for Embedded Insurance: Transforming Lives

As we look at the road ahead for embedded insurance, it’s clear this isn’t just a trend—it’s a revolution in how we think about protection. Embedded insurance has proven itself capable of reshaping industries, enhancing customer experiences, and unlocking new revenue streams. But its true power lies in something even more profound: its potential to make a real difference where it matters most.

Embedded Insurance as a Driver of Inclusion

In many low-wage and economically fragile regions, the protection gap—the disparity between risks people face and their ability to mitigate them—remains a silent crisis. Millions are left vulnerable to illness, accidents, or natural disasters simply because insurance feels out of reach:

• Too complex.
• Too expensive.
• Too disconnected from their daily realities.

But embedded insurance changes the game. By seamlessly integrating micro-insurance into everyday transactions, it offers people affordable and accessible safety nets—often without them even needing to take the first step.

Imagine this:

• A farmer in a rural area insures their crops through an SMS service bundled with their mobile data plan.
• A gig worker gets health coverage as part of their payment app usage.
• A family secures flood insurance when buying materials to rebuild their home after a storm.

In these scenarios, embedded insurance doesn’t just provide coverage—it delivers dignity, stability, and the power to rebuild lives.

We’re not just changing insurance—we’re empowering people to dream, build, and protect what matters most.

A Win-Win-Win Model

Embedded insurance creates value for all stakeholders:

• Consumers gain affordable, frictionless protection.
• Businesses deepen customer trust and unlock ancillary revenue streams.
• Insurers reach markets that were once unreachable.

This model is particularly impactful in underserved markets where traditional distribution channels have failed to penetrate. The beauty of embedded solutions is their scalability, enabling insurers to bring micro-insurance to millions with minimal cost.

Building Resilience in a Changing World

We live in an era of unprecedented uncertainty—climate change, economic instability, and health crises are reshaping the global risk landscape. Embedded insurance equips individuals and communities with the tools to face these challenges head-on, especially in vulnerable economies where traditional safety nets are scarce.

For governments, embedded insurance offers a way to bridge systemic gaps without large-scale public expenditure. It’s a private-sector solution with profound public-good implications.

Final and Personal Statement: Insurance as a Force for Good

Embedded insurance isn’t just about innovation or market opportunity. At its heart, it’s about changing lives. It’s about recognizing that everyone, no matter where they live or how much they earn, deserves a chance to recover from hardship, pursue dreams, and protect their loved ones.

We have the tools, the platforms, and the vision. Now it’s up to us to ensure embedded insurance delivers not just products, but possibilities—for everyone.

As leaders, innovators, and change-makers, it’s on us to make embedded insurance the bridge between innovation and inclusion. Let’s build a world where protection is not just a product—it’s a promise, delivered seamlessly.

Jo?o Madureira Pinto