emerging
Embedded Insurance Grows
Embedded insurance, sold at the point of sale for other products or services, is gaining traction and transforming distribution channels.
Timeframe
near-term
Categories
Subcategories
Impact areas
Detailed Analysis
The distribution of insurance is evolving, with embedded insurance becoming increasingly prevalent. This model involves selling insurance at the point of sale for other products or services, creating a more seamless and convenient customer experience. The report notes that "Embedded insurance—sold at the point of sale for a product or service—is not a new development" but is evolving across various industries. This trend is particularly prominent in Asia, where a supportive regulatory environment and the rapid adoption of EVs and AVs have facilitated growth. The expansion of embedded insurance and the rise of bancassurance are bringing insurance closer to the customer, intensifying competition and requiring traditional agents to evolve their roles to provide greater value.
Context Signals
Asia's nonlife embedded insurance market is estimated to reach $170 billion by 2030.
Bancassurance represents about 9% of nonlife premiums in Europe and up to 25% in some Latin American countries.
Digital insurance sales are expanding in markets like Australia and the United States.
Edge
Increased partnerships between insurers and non-insurance businesses to offer embedded insurance solutions.
Development of new digital platforms and ecosystems to facilitate the sale and management of embedded insurance.
Potential for disruption of traditional insurance distribution channels and the role of agents.
