PUBLISHER: The Business Research Company | PRODUCT CODE: 1808741
PUBLISHER: The Business Research Company | PRODUCT CODE: 1808741
Embedded insurance integrates coverage seamlessly into the purchase process of products or services, effectively bundling insurance with related goods or services to enhance customer convenience. This approach is designed to simplify access to insurance and drive higher adoption rates by removing the need for a separate purchasing decision.
The primary categories of embedded insurance are intrinsic insurance, opt-out bundled insurance, opt-in bundled insurance, and billboard insurance. Intrinsic insurance refers to coverage that is automatically included with a product or service at the point of purchase, eliminating the need for a separate transaction or policy. This model operates across various channels, including both online and offline platforms, and spans multiple industries such as automotive, healthcare, real estate, consumer products, travel and hospitality, among others.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a considerable impact on the financial sector, particularly in the areas of investment strategies and risk management. The increased tariffs have intensified market volatility, leading institutional investors to adopt more cautious approaches and driving greater demand for hedging solutions. Banks and asset managers are encountering higher costs in cross-border transactions as disrupted global supply chains and declining corporate earnings weigh on equity market performance. At the same time, insurance providers are facing elevated claims risks linked to supply chain interruptions and trade-related business losses. Furthermore, reduced consumer spending and weaker export demand are limiting credit growth and dampening investment appetite. In response to these challenges, the sector must focus on diversification, accelerate digital transformation, and strengthen scenario planning to manage the heightened economic uncertainty and safeguard profitability.
The embedded insurance market research report is one of a series of new reports from The Business Research Company that provides embedded insurance market statistics, including the embedded insurance industry global market size, regional shares, competitors with embedded insurance market share, detailed embedded insurance market segments, market trends, and opportunities, and any further data you may need to thrive in the embedded insurance industry. These embedded insurance market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The embedded insurance market size has grown rapidly in recent years. It will grow from $97.57 billion in 2024 to $116.05 billion in 2025 at a compound annual growth rate (CAGR) of 18.9%. The growth in the historic period can be attributed to regulatory support, cost-effectiveness, rising awareness of cyber risks, growing awareness of environmental risks, and rising urbanization rates.
The embedded insurance market size is expected to see rapid growth in the next few years. It will grow to $232.16 billion in 2029 at a compound annual growth rate (CAGR) of 18.9%. The growth in the forecast period can be attributed to enhanced customer experience, increase market penetration, improve risk management, operational efficiency, and data privacy and security. Major trends in the forecast period include focus on sustainability, integration with IoT devices, blockchain technology, microinsurance, and telematics-based insurance.
The forecast of 18.9% growth over the next five years reflects a slight reduction of 0.2% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through reduced accessibility of point-of-sale coverage, as dynamic pricing algorithms and micro-insurance underwriting systems, predominantly sourced from France and Israel, become more expensive to embed within partner platforms. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The growth of the embedded insurance market is anticipated to be driven by the increasing adoption of digital platforms. Digital platforms refer to online systems that facilitate various services, including the purchase, management, and customization of insurance policies. This trend is driven by rising consumer demand for convenience, economic growth, technological advancements, and attractive pricing options. Digital platforms enable the integration of insurance services into non-insurance platforms via APIs, allowing businesses to offer insurance products directly within their digital ecosystems. For instance, data from the Bureau of the Census, a U.S. Federal Statistical System agency, shows that e-commerce sales in the first quarter of 2024 increased by 8.6% (+-1.1%) compared to the first quarter of 2023, while total retail sales grew by 1.5% (+-0.5%) during the same period. E-commerce sales represented 15.9% of total retail sales in the first quarter of 2024. This growing adoption of digital platforms is expected to drive the embedded insurance market.
Key players in the embedded insurance market are developing advanced solutions that leverage artificial intelligence to enhance claims processing, personalize insurance offerings, improve risk assessment, and bolster customer support. AI contributes to embedded insurance by automating processes, refining risk assessment, customizing offerings, and streamlining claims management. For example, in June 2024, Qover, a Belgium-based insurance company, introduced an AI-powered embedded insurance solution. This solution employs advanced data extraction technologies, including generative artificial intelligence (GenAI) and optical character recognition (OCR), to expedite and simplify the claims process. The integration allows for claim settlements within minutes of approval, boosting efficiency and user satisfaction.
In September 2022, Allianz X, the digital investments arm of Allianz Group based in Germany, acquired Simplesurance for an undisclosed amount. This acquisition aims to strengthen Allianz X's partnership with Simplesurance, enhance insurance distribution through Simplesurance's technology, and accelerate global expansion in the embedded insurance market. Simplesurance, based in Germany, specializes in embedded insurance solutions.
Major companies operating in the embedded insurance market are Zurich Insurance Group Ltd., The Chubb Corporation, Acko General Insurance Ltd., Root Insurance Company, Next Insurance Inc., Zego, Lemonade Insurance Agency LLC, Vouch Inc., Getsafe GmbH, Hippo Enterprises Inc, Qover S.A./N.V, Hepster, Cover Genius Insurance Services LLC, Cuvva, Sure Inc., wefox Insurance AG, SimpleSurance, Akur8 SAS, Trov, CoverWallet Inc., Slice Insurance Technologies Inc., Boost Insurance USA Inc., Kasko Ltd., Bimaplan, Bsurance GmbH
Asia-Pacific was the largest region in the embedded insurance market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the embedded insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the embedded insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The embedded insurance market consists of revenues earned by entities by providing services such as policy issuance and management, claims processing, customer support, real-time risk assessment and underwriting, billing and payment processing, and policy renewals and adjustments. The market value includes the value of related goods sold by the service provider or included within the service offering. The embedded insurance market also includes sales of point of sale (POS) systems, self-service kiosks, and payment terminals. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Embedded Insurance Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on embedded insurance market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for embedded insurance ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The embedded insurance market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.