Think BIG: Embedded Insurance

My recent announcements about new partnerships in embedded insurance brought congratulations but also curiosity and questions like, “What exactly are you insuring with these embedded insurance policies?” and “Aren’t they just gadgets? Can these policies compare to the ‘real’ ones brokers and agents sell?” These questions highlight a common misconception: that embedded insurance is either trivial or a rival to traditional policies. The truth? It’s neither.

Closing a Big Protection Gap

Embedded insurance offers something entirely different - customized protection that integrates seamlessly into daily transactions and activities, providing coverage when and where it’s needed. In today’s hyperconnected world, where gadgets power our lives and activities move to digital platforms, insurance has taken this new, smarter form. It’s no longer about hunting for a policy and filling out piles of paperwork. Instead, it’s about protection bundled with the products and services you buy or use.

The global average insurance penetration remains alarming low (around 3% for life and 7% for non-life), but embedded insurance is set to change that. By embedding policies directly into everyday purchases, it removes the friction and complexity traditionally associated with buying insurance. Rather than competing with traditional insurance, embedded insurance extends the playground for coverage. This evolution in the insurance landscape doesn’t replace traditional policies—it complements and enhances them, making insurance more accessible, convenient, and relevant.

Two Big Examples of Embedded Insurance

Take two examples of embedded insurance from my last announcements: gadget insurance and payment protection insurance.

• Gadget Insurance: When you buy a high-value device like a smartphone or laptop, you’re investing in more than hardware. It’s your gateway to work, entertainment, and connection. But accidents happen - spilled coffee, cracked screens, or worse. Gadget insurance steps in to save the day, offering instant peace of mind.
• Payment Protection Insurance: Life is unpredictable, and unexpected challenges like job loss or illness can disrupt your ability to meet financial obligations. Payment protection insurance (PPI) provides a safety net, covering loan or credit card payments during tough times.

A customer purchasing a high-end smartphone or taking out a digital loan isn’t likely to visit a broker or agent afterward to insure it. Brokers and agents focus on life, home, or car insurance - not gadgets. Embedded insurance fills this gap by providing protection at the moment of purchase. Whether it’s a small monthly fee to protect your phone or a quick add-on to safeguard your loan, embedded insurance fits seamlessly into the customer journey.

Big Book of Business

Embedded insurance is far from being trivial. With billions in premiums generated globally, it has moved from the sidelines to the spotlight, proving it’s not just an add-on but a game-changer. It is predicted that by 2030, the global market for embedded insurance will surpass $700 billion, marking it as a major force reshaping the landscape of insurance. Embedded insurance isn’t a buzzword anymore. It’s a revolution in how we think about risk and security in the digital age. Whether it’s safeguarding your shiny new gadget or ensuring you can pay your bills when life takes an unexpected turn, this is the future of insurance.

Big Revenues for Companies Across All Sectors

In all businesses, the game is about adding value: to the customer, to the shopping cart, and, ultimately, to your bottom line. Smart companies across different sectors - retailers, banks, travel, telco, automotive, ecommerce, and others - understand that embedded insurance isn’t just a cherry on the cake. It’s a strategic driver of growth.

• Boosted Revenue: Embedded insurance adds layers to transactions which turn one-time sales into recurring revenue streams.
• Stronger Loyalty: Offering tailored protection shows customers you care, creating long-term trust.
• Competitive Edge: Embedded insurance elevates customer experiences, making businesses stand out from the competition.

Final Thought

Embedded insurance may not beep, buzz, or glow, but it’s a powerhouse of protection in a digital world. From gadgets to financial security, it transforms everyday transactions into everyday protection and revenue. For businesses, it’s more than an upsell - it’s a way to build trust, boost revenue, and stay ahead in a competitive market. For customers, it’s convenience, offering peace of mind when it matters most. For society, it's closing the protection gap. Embedded insurance is reshaping industries, rewriting customer journeys, and redefining what it means to feel secure in a hyperconnected world. The question isn’t whether to adopt it - it’s how fast you can keep up.