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Business Insurance Basics

Four reasons to add embedded insurance to your business model

father and son shopping


In 2020 digital platforms accounted for $36 trillion in global payments, claim that daily time spent on mobile devices has risen to 155 minutes per day. And those numbers are only going to increase as more industries are reshaped by the digital revolution.

1. Drive revenue with little added effort or investment

Offering your customers insurance drives revenue in two ways. First, having add-on insurance options available has the potential to increase conversions, even if customers don’t end up buying the coverage. Plus, when customers do buy insurance through your ecosystem, in some countries and jurisdictions we can share that revenue directly with you.

For example,  of net earnings coming from insurance.

Please note that we structure embedded insurance programs in compliance with applicable law, so sharing of insurance premiums with companies that are not licensed insurance agencies is an option only in those jurisdictions where permitted by law.


2. Increase customer retention

Integrated insurance also promotes customer goodwill and return business, making your business stickier. When customers associate your company with multiple parts of their life, you’ll be top of mind next time they need something.

For example, a major telecommunication company partnered with Chubb to offer supplemental home and renters’ insurance to customers renewing their internet or cable service online. This simple solution increases the perceived value for the customer, potentially making them less likely to cancel their service.

Customers can also earn rewards by using a partnering digital wallet app. And those perks, such as travel points, may make them more likely to book with the same provider.

We’ve seen penetration in our banking partners. This proves that integrated insurance catches on and keeps customers engaged.


3. Lower acquisition cost

We know that getting new customers in the door (physically or digitally) is key for your business, and embedded insurance is a great way to reduce cost-per-acquisition.

One major bank saw 70,000 new accounts triggered through insurance in the first year after partnering with Chubb. A global credit card leader in Asia wanted to reduce marketing costs without losing new business. As our embedded insurance partnership developed, the credit card company saw marketing costs drop 56%, with cost-per-acquisition 65% lower.

Customers get best-in-class coverage while you benefit from the additional data, insights, and potential profits.


4. Build brand loyalty

Our goal with integrated insurance partnerships is to seamlessly build the best of what we do into what your company does best. With customization options, you can choose how integrated your brand is throughout the purchase. And when your customers see innovative service offerings during their purchase journey with you, they’re more likely to keep coming back.

If they know they have insurance on goods purchased through your marketplace, they may be more likely to choose to do business with you over competitors. Offering customers the opportunity to purchase insurance through simple transaction helps you create trust in the purchase journey.

If you want your customers to keep saying great things about your business, while boosting your revenue and customer pipeline, an integrated insurance partnership may be something to consider. In a rapidly changing digital world, it’s one step you can take to keep ahead of the competition.

This document is advisory in nature and is offered as a resource to be used together with your professional insurance advisors in maintaining a loss prevention program. It is an overview only, and is not intended as a substitute for consultation with your insurance broker, or for legal, engineering or other professional advice.

Chubb is the marketing name used to refer to subsidiaries of Chubb Limited providing insurance and related services. For a list of these subsidiaries, please visit our website at Insurance provided by ACE American Insurance Company and its U.S. based Chubb underwriting company affiliates. All products may not be available in all states. This communication contains product summaries only. Coverage is subject to the language of the policies as actually issued. Surplus lines insurance sold only through licensed surplus lines producers. Chubb, 202 Hall's Mill Road, Whitehouse Station, NJ 08889-1600.


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