What Is The Current and Historic Market Size Analysis Of The Embedded Insurance Market?
The embedded insurance market has seen considerable growth due to a variety of factors.
• The embedded insurance market has experienced rapid growth. It will increase from $97.57 billion in 2024 to $116.49 billion in 2025, at a CAGR of 19.4%.
This growth is driven by regulatory support, cost-effectiveness, rising awareness of cyber and environmental risks, and rapid urbanization.
What are the Market Size and Expected Growth Rates for the Embedded Insurance Market?
The embedded insurance market is expected to maintain its strong growth trajectory in upcoming years.
• The embedded insurance market is expected to grow rapidly, reaching $233.83 billion by 2029 at a CAGR of 19.0%.
This growth is fueled by improved customer experience, better risk management, operational efficiency, and enhanced data privacy and security. Key trends include sustainability, IoT device integration, blockchain technology, microinsurance, and telematics-based insurance.
Which Key Drivers Are Propelling The Embedded Insurance Market's Growth?
The increasing adoption of digital platforms is expected to drive the embedded insurance market. Digital platforms allow consumers to access and customize insurance policies online. This trend is supported by growing demand for convenience and technological advancements. For instance, the US Census Bureau reported in 2024 that e-commerce sales increased by 8.6% from 2023, driving the demand for embedded insurance services within digital ecosystems.
What Are The Key Segments Within The Global Embedded Insurance Market?
The embedded insurance market covered in this report is segmented –
1) By Type: Intrinsic Insurance, Opt-Out Bundled Insurance, Opt-In Bundled Insurance, Billboard Insurance
2) By Channel: Online, Offline
3) By Industry: Automotive, Healthcare, Real Estate, Consumer Products, Travel And Hospitality, Other Industries
Subsegments:
1) By Intrinsic Insurance: Embedded In Consumer Products (Smartphones, Electronics), Embedded In Automotive (Car Insurance Included With Vehicle Purchase), Embedded In Travel Services (Travel Insurance Included In Booking), Embedded In Financial Products (Life Insurance With Loans)
2) By Opt-Out Bundled Insurance: Insurance Bundled With Services (Consumers Automatically Enrolled But Can Opt Out), Travel Insurance With Ticket Purchase (Opt-Out At Checkout), Extended Warranties With Product Purchases (Electronics, Appliances), Health Insurance With Subscription Services (Wellness Programs)
3) By Opt-In Bundled Insurance: Insurance Bundled With Services But Requires Customer Opt-In, Car Rental Insurance (Optional At Booking), Product Insurance For Electronics Or Appliances (Opt-In At Point Of Sale), Travel Insurance (Optional When Booking Flights, Hotels, Or Vacation Packages)
4) By Billboard Insurance: Insurance Offered Through Advertisements (In-app Insurance Offers Or Digital Billboards), Insurance Ads Via E-Commerce Platforms (Insurance Offers During Online Checkout), Mobile App Insurance Offers (Banners Or Push Notifications For Insurance Products)
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Which Emerging Market Trends Are Altering The Embedded Insurance Industry?
Companies in the embedded insurance market are integrating artificial intelligence into their insurance solutions to streamline claims processing, personalize offerings, and enhance risk assessment. AI enables the automation of embedded insurance processes, improving efficiency and customer service. For instance, in June 2024, Qover, a Belgium-based insurance company, launched an AI-powered embedded insurance solution. This system uses AI and OCR technologies to expedite claims processing, enabling claim settlements within minutes, which enhances overall user satisfaction.
Who Are the Key Players In The Embedded Insurance Market?
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
What Are The Regional Insights Into The Embedded Insurance Market?
Asia-Pacific was the largest region in the embedded insurance market in 2023. 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.
