“Embedded insurance” means allowing customers to buy certain insurance products as part of a wider transaction, rather than as a separate purchase. An example of embedded insurance is providing customers with a means of buying travel insurance at the same time as they book a flight.
In this post we will explore the current market size of embedded insurance, along with its growth potential. We will also outline some of the underlying causes for this growth, while discussing how we can help you provide your customers with secure and convenient embedded insurance solutions.
What is the Current Market Size of Embedded Insurance?
According to a recent report, in 2024, the embedded insurance market is worth $156.06 billion. Asia has the largest embedded insurance market, but North America has the fastest growing market.
The report forecasts a compound annual growth rate of 35.14%. So, by 2029, the embedded insurance market could be worth up to $703.44 billion.
To find out more about these figures, see the report Mordor Intelligence recently published with a detailed analysis of the current size of the embedded insurance market, along with a growth forecast.
The report values the embedded insurance market in terms of the gross written premiums value in US dollars. This is the combined value of all embedded insurance products across all lines (travel, health etc.), all channels (offline and online), and all regions (North America, Europe, Africa etc.)
Why is Embedded Insurance Such a Growing Market?
Embedded insurance offers a wealth of benefits to both businesses and customers. It allows customers to quickly get precisely the cover they need exactly when they need it, without having to shop around for a separate policy. This means more sales for insurers, with less need to worry about “the cover gap”.
It’s a total win-win situation, as beneficial to insurers as it is to customers.
Yet until recently, offering embedded insurance solutions may have been prohibitively expensive for many insurers. If they did not lack the funds to invest in such a solution, then they may have lacked the technical expertise to make the transition.
Why is Embedded Insurance More Accessible Now?
Embedded insurance is no longer “new”. Because of its rapid growth, insurers and application developers now have a firm idea of what works, and what doesn’t. Plus, the regulatory environment will, by now, have caught up with the privacy and security implications of selling insurance at the point of purchase.
All of this means is that embedded insurance is now more accessible than ever. It is relatively easy for any insurer in any industry to offer embedded insurance products, and customers are invariably impressed with what they deliver. With this in mind, it’s no wonder the embedded insurance market’s so big, and getting bigger.
How Capacity Insights Works With Customers to Deliver Embedded Insurance Solutions
At Capacity Insights, we can help you enjoy the benefits of the growing embedded insurance market.
We specialise in helping businesses and companies provide their people with flexible and comprehensive healthcare cover with a dedicated healthcare insurance app.
Whether you’re looking to invest in your first embedded health insurance plan, or you want to change or add to your current package, we’re here for you.