March 12, 2025
Embedded insurance integrates coverage directly into the buying process, making it easier for customers to get protection without extra steps. It’s a growing $3 trillion market, expected to account for over 30% of insurance transactions by 2028. Key benefits include:
Businesses can implement embedded insurance through API-driven integrations for tailored solutions or no-code platforms for faster deployment. Real-world examples include Tesla, Amazon, and JetBlue, which have improved customer satisfaction and driven growth by embedding insurance into their offerings.
If you’re considering embedded insurance, focus on compliance with state regulations, seamless integration, and delivering value at the right moment to customers.
There are two main ways to integrate insurance systems with business platforms: API-driven integration and no-code solutions. Each serves different needs based on technical requirements and resources.
API integration allows automated data exchange between systems, streamlining tasks like policy issuance and claims processing [4]. This approach is ideal for businesses that have technical teams and need tailored solutions.
Here are the main types of APIs commonly used in insurance:
A great example is Amazon's collaboration with Next Insurance. Through API integration, Amazon offers small business insurance directly on its platform. This setup has boosted insurance adoption among Amazon sellers while ensuring a seamless user experience [1].
The Mia-Platform team highlights the adaptability of APIs:
"APIs are the perfect tool for sharing data and services because they are agnostic with respect to the underlying service" [5].
For businesses that need quicker deployment and lack technical resources, no-code solutions provide an effective alternative.
No-code platforms make integration easier by using visual tools and drag-and-drop features [7]. This approach is especially useful for businesses looking to avoid complex coding.
An example of this is CoverGo's no-code product builder, which has cut product development time and costs by over 90% compared to traditional methods [6]. This efficiency is critical since legacy systems often come with steep costs:
| Metric | Increase vs Modern Systems |
|---|---|
| IT Costs | 58% higher |
| Operating Costs | 43% higher |
A travel booking platform showcases the benefits of no-code solutions. By integrating travel insurance with minimal effort, customers could add coverage during the booking process with just a few clicks. This led to better conversion rates and improved customer experience [7].
Walnut Insurance offers flexibility by supporting both API and no-code integrations. Their platform connects with over 14 insurance carriers while handling compliance and broker support efficiently.
Embedded insurance simplifies the process by integrating coverage directly at the point of purchase. This approach addresses a key gap: while 73% of consumers want better customer experiences, only 49% feel they’re getting them [9].
Here’s how it improves the customer experience:
A great example is JetBlue’s partnership with Allianz. By embedding travel insurance into its booking platform, JetBlue boosted customer satisfaction and loyalty. Travelers could protect their trips without ever leaving the airline’s website [8].
"We have a good idea of what it means for an embedded insurance partnership to work. It has to add value for the customer; to be relevant, contextual, accessible and easy to purchase; to add value for the partner, with revenue, customer retention or brand loyalty; and there must be a technology match so the insurance offering embeds seamlessly into [the] customer experience." [10]
This improved customer experience also leads to stronger revenue and retention outcomes.
Embedded insurance doesn’t just improve customer experiences - it’s also a powerful driver of revenue. The market is expected to hit $156.06 billion in gross written premiums by 2024 [3].
Here’s what makes it effective:
| Metric | Impact |
|---|---|
| Market Growth | 35.14% annual growth through 2029 |
| Consumer Preference | 70% prefer insurance integrated into their purchase |
| Market Share | Predicted to account for 15% of the insurance market by 2026 |
| Business Adoption | 45% of e-commerce and fintech companies already use it |
Real-world examples show the potential. Tesla’s embedded insurance program saw written premiums jump from $12.7 million to $109.9 million in one year by using real-time driving data to create personalized premiums [3].
Cover Genius also had impressive results. Their partnership with Turkish Airlines increased attachment rates by 400% after introducing tailored protection options for global customers. Similarly, their collaboration with eBay led to a 513% spike in warranty revenue within weeks [Cover Genius, 2023].
Retailers are weaving insurance options directly into their platforms, making it easier for customers to protect their purchases. A great example is Rivian's collaboration with Progressive, which offers coverage for vehicles and Rivian-branded accessories. This allows customers to add protection during the buying process without any extra hassle [3].
Travel platforms are also stepping up by including insurance options, simplifying the process for travelers looking to secure coverage while planning their trips.
HK Express has teamed up with AXA Hong Kong and Macau to offer travel insurance with just one click. This plan includes medical coverage up to HK$500,000 ($65,000), baggage protection of up to HK$6,000, and even doubles to HK$12,000 for travelers heading to Japan [3].
Skyscanner is addressing an important gap in the market by embedding insurance into its platform. This move aligns with findings that 42% of US travelers would switch providers due to dissatisfaction with current coverage and claims processes [3].
Beyond retail and travel, the financial sector is also making strides in embedding insurance into everyday transactions.
Banks and payment platforms are integrating insurance to deliver more value to their customers. For instance, Boursorama Banque has partnered with Chubb to provide travel coverage for premium cardholders. This coverage automatically kicks in when customers make travel-related purchases [11].
In the Philippines, GCash, a leading e-wallet provider, has added insurance options to its platform. Their GInsure Bill Protect includes:
| Coverage Type | Protection Details |
|---|---|
| Accidental Death | 30-day coverage from the transaction date |
| Purchase Protection | Covers items bought through the app |
| Buyer's Protection | Adds security for digital transactions |
Meanwhile, Nubank in Brazil has introduced Nubank Vida, a life insurance program. With over 560,000 active policies, more than half of its users reported this as their first life insurance policy [11].
"A modern-day, intuitive experience comes with embedded offers for financial protection and must be a frictionless stage of the customer journey. For example, when a consumer is offered a relevant insurance product such as travel insurance with a plane ticket."
– Amy McNeece, Senior Vice President of Digital Consumer Partnerships, North America, Chubb [11]
These examples from different industries highlight how embedding insurance can improve customer convenience while unlocking new revenue streams.
In the United States, insurance regulations are handled at the state level, which can create challenges for businesses. Companies must secure specific licenses in every state where they intend to offer insurance products [14].
The regulatory framework covers three main areas:
| Requirement Type | Description | Key Considerations |
|---|---|---|
| Producer Licensing | Authorization to sell insurance | Must be obtained in each state where operations occur |
| Consumer Protection | Data privacy and fair practices | Varies depending on state laws |
| Anti-discrimination | Fair pricing and underwriting | Prohibits unfair treatment based on protected traits |
Businesses can either obtain their own licenses or collaborate with a licensed third party. This decision impacts their operational flexibility and compliance approach [12].
In addition to licensing, companies must meet various compliance standards to manage risks effectively. Anti-rebating laws, for example, prevent offering incentives not explicitly stated in insurance policies [13]. Companies are also required to follow 31 CFR Part 1025, which includes anti-money laundering programs and suspicious transaction reporting [15].
To meet compliance standards, businesses should concentrate on the following areas:
For companies working with third-party licensed producers, it’s crucial to understand the legal boundaries around marketing activities and compensation agreements [12]. Regular compliance audits and updates to internal policies can help businesses stay aligned with changing state regulations. These practices not only fulfill legal requirements but also help protect the company and its customers. By following these measures, businesses can ensure their embedded insurance offerings meet both legal and operational standards.
The embedded insurance market is on track for major growth, with projections estimating it will hit $700 billion in gross written premiums by 2030 [16]. This surge is fueled by changing consumer preferences and advancements in technology that allow insurance products to be seamlessly integrated into everyday purchases.
For example, one of the top 15 retailers in the U.S. generated $725 million - 1.4% of its total revenue - by offering protection plans at checkout [16]. This highlights the revenue potential of embedding insurance directly into the customer journey.
Looking ahead, embedded insurance is expected to account for over 30% of all insurance transactions by 2028 [1]. Businesses aiming to capitalize on this trend should focus on key strategies like:
| Strategic Priority | Expected Impact | Implementation Consideration |
|---|---|---|
| Digital Infrastructure | Simplifies integration | Invest in cloud-based systems with API support |
| Customer Experience | Boosts purchase intent by 25% | Offer personalized, context-driven solutions |
| Partnership Development | Cuts acquisition costs by 75% | Align with high-volume, strategic partners |
"Insurance carriers must be willing to innovate and more aggressively self-disrupt, defining new product offerings and financial models specific to the embedded channel." - Chris Raimondo, Americas Insurance Technology Consulting Leader at EY [10]
These developments are reshaping how insurance is sold and consumed, signaling a shift in industry practices driven by innovation and customer-centric approaches.
