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Embedded insurance is an innovative way for businesses to integrate relevant risk protection into their customers’ purchase journeys, allowing them to include or add on coverage when buying their products or services. The customer does not have to leave their journey to do additional research or to buy insurance — personalized protection at a competitive rate can be made available seamlessly to customers when and where they need it most.

Traditionally this is done at the point of sale — think travel insurance added onto a plane ticket purchase, or the option to buy cellphone insurance while acquiring a new handset. However, today, with the evolution of technology, the possibilities for integrating tailored, digital insurance solutions into a business’s value proposition are endless. Whether it’s an all-inclusive holiday, concert tickets, a new e-bike, or online banking bill protection, giving customers the opportunity to add on insurance can help them make a confident decision by reducing the risk at the time of purchase.

The value of embedded insurance

With embedded insurance, coverage can be integrated with your products and services in a variety of ways: as add-on coverage for a product or service at the time of purchase; as coverage that is included in the price of your core offering; or as an additional benefit to your customers alongside other services — for instance, a real estate company or financial institution that also offers their customers homeowners or life insurance.

There are many benefits to embedded insurance. By making it easier to purchase coverage, it can play a key role in helping to close the global insurance protection gap — the gap between economic losses and those that are insured – which has only increased as a result of the pandemic and other recent economic factors. Whether it’s offering rideshare drivers in-app insurance options to protect their vehicles and livelihoods, or online banking customers life insurance to protect the future of their family, embedded coverage is making insurance protection more accessible and inclusive across the globe. Indeed the global embedded insurance market represents a US $3 trillion opportunity.*

Providing integrated protection can also enhance the value proposition of your business. Whether you’re a digital-first, born-in-the-cloud startup, a brick-and-mortar business, or something in-between, embedded insurance can bring a range of benefits to your company:

  • Provide added value to your customers
  • Deepen customer loyalty and engagement
  • Add new revenue streams
  • Differentiate your business and attract investors
  • Build brand equity 
woman texting on city street


Meeting the modern consumer where they are

Many of today’s primary consumers — Millennials and Gen Z — are digital natives. They work, play, and socialize online. Older generations have become active digital customers as well. Increasingly, consumers of all generations are forging new relationships with brands that are interactive, personal, and experience oriented. In this always-on digital world, your business can deepen its engagement with customers — and grow revenues — by offering integrated insurance solutions.

Not only is it convenient to purchase insurance through an embedded offering, but many customers are also likely to feel more comfortable buying insurance via a familiar brand with which they have an existing relationship. And, because embedded insurance can be highly personalized, they are able to derive maximum benefit and value from the coverage. However, it is critical for embedded insurance offerings to be implemented in compliance with all applicable legal and regulatory requirements. Insurers with experience in this market segment can help develop appropriate program structures.

In an increasingly unpredictable and anxious time, integrating protection into your company’s core offerings allows your business to provide customers with peace of mind. Personalized insurance woven into online experiences can make a valued difference in your customers’ lives — and differentiate your business in the marketplace.

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 www.chubb.com. 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.