Embedded Insurance Industry Statistics 2024: Regional Insights, Technology Trends, and Market Growth
Barry Elad
Updated · Dec 05, 2024
Imagine a world where your car, smartphone, or even a fitness app could offer you tailored insurance coverage the moment you need it. Embedded insurance is transforming this vision into reality. By seamlessly integrating insurance options within products and services, this industry is rewriting the rules on how consumers buy, use, and benefit from insurance. As we head into 2024, embedded insurance isn’t just a trend; it’s a booming market with remarkable growth potential. This article explores the embedded insurance industry’s pivotal statistics and trends, shedding light on why it’s becoming a central element in today’s digital-first economy.
Editor’s Choice: Key Growth Milestones
- $3.8 billion: Global embedded insurance market value in 2023, marking a substantial increase from previous years.
- 40% CAGR is expected in the embedded insurance market from 2024 to 2030, showcasing an aggressive growth trajectory driven by consumer demand and digital innovation.
- By 2026, embedded insurance premiums in sectors like automotive and healthcare are projected to exceed $700 billion, underlining the expanding scope across various industries.
- Over 70% of consumers are open to embedded insurance offers when seamlessly integrated into their purchase journeys.
- Digital platforms and e-commerce channels now account for over 45% of embedded insurance policies sold globally, illustrating the shift toward digital-first distribution models.
- 60% of insurers have reported plans to invest heavily in embedded solutions by 2025, demonstrating an industry-wide commitment to innovation.
- InsurTech funding, including for embedded insurance initiatives, reached $14 billion in 2023, a clear sign of investor confidence in the future of this sector.
Market Size and Growth Projections
- The global market size of embedded insurance is forecasted to hit $22 billion by 2025, emphasizing its rapid expansion.
- From 2024 to 2029, embedded insurance is projected to grow at a compound annual growth rate (CAGR) of 30%, surpassing traditional insurance growth rates.
- In North America, embedded insurance premiums are expected to reach $8 billion by 2024, with the United States leading this surge.
- The Asia-Pacific region is anticipated to be the fastest-growing market for embedded insurance, with a CAGR of 35% projected through 2026.
- Europe holds approximately 25% of the embedded insurance market share in 2023, expected to increase as European companies invest in InsurTech solutions.
- By 2024, over 50% of all insurance transactions are predicted to involve embedded insurance products, especially in the mobility, travel, and e-commerce sectors.
- The healthcare and automotive industries will contribute around 40% of embedded insurance revenues by 2026, underscoring sector-specific expansion.
Embedded Insurance Industry Segmentation
- Automotive Sector: As of 2023, the automotive sector holds approximately 30% of the embedded insurance market. With vehicle ownership models shifting and electric vehicles on the rise, automotive-embedded insurance is set to grow by 12% annually.
- Healthcare: Embedded insurance in healthcare, including telemedicine and wearable tech, contributed to 15% of the market in 2023. This segment is projected to grow to $6 billion by 2027, driven by digital health solutions.
- Retail and E-commerce: Retail and e-commerce channels account for 20% of embedded insurance policies, with returns protection and device warranties being key offerings. The segment is expected to expand with a CAGR of 28% from 2024 to 2029.
- Travel and Tourism: Embedded travel insurance surged in popularity, particularly after the pandemic, contributing 10% of the market in 2023. This segment is projected to grow by 30% annually as more airlines and booking platforms integrate insurance options.
- Banking and Fintech: In 2023, the banking and fintech sectors represented 8% of the market share for embedded insurance, with strong growth potential as more digital banks incorporate insurance into their offerings.
- Real Estate and Home Services: Representing 5% of the embedded insurance market in 2023, real estate insurance covers areas like renters’ insurance and home warranties, projected to grow by 24% annually as online real estate platforms adopt insurance integrations.
- Technology and Devices: With the growing demand for protection plans for devices, 12% of embedded insurance policies relate to electronics and smart devices, a number expected to double by 2026.
Technological Advancements and InsurTech Integration
- Artificial Intelligence (AI): Over 65% of embedded insurance providers are now leveraging AI to enhance underwriting accuracy and personalize policy recommendations, projected to increase efficiency by 40% by 2025.
- Internet of Things (IoT): IoT devices like wearable health trackers and connected cars contributed to a 30% boost in embedded insurance policy adoption in 2023, especially in sectors like automotive and health.
- API Integrations: By 2024, it’s expected that 85% of embedded insurance products will be powered by API integrations, enabling real-time insurance offers within apps and websites.
- Blockchain: Blockchain technology has facilitated secure and transparent claims processing, with 20% of insurers using it in embedded insurance products to streamline claim settlements.
- Telematics: In the auto insurance sector, telematics is projected to account for 45% of policies by 2025, allowing real-time monitoring and tailored premium pricing based on driving behavior.
- Machine Learning: Embedded insurance companies are increasingly utilizing machine learning for fraud detection, predicting that fraud cases could drop by 15% by 2025 due to these technologies.
- Cloud Computing: Over 70% of insurers now rely on cloud-based platforms to manage and scale embedded insurance products, enabling faster deployment and better data security.
Geographical Insights and Regional Analysis
- North America: As the leading market, North America holds 35% of the embedded insurance market share in 2023. This dominance is driven by tech-savvy consumers and extensive digital infrastructure, with growth projected at 32% CAGR through 2026.
- Europe: Embedded insurance in Europe captured 25% of the global market share in 2023, with strong adoption in countries like the UK, Germany, and France. Government regulations and data protection laws are shaping a steady 28% annual growth rate.
- Asia-Pacific: The fastest-growing region, Asia-Pacific, is expected to reach a CAGR of 38% from 2024 to 2030. High smartphone penetration and expanding e-commerce in countries like China and India drive embedded insurance adoption, particularly in the automotive and healthcare sectors.
- Latin America: Holding 7% of the market share in 2023, Latin America’s embedded insurance sector is emerging, especially in Brazil and Mexico. The region is forecasted to grow by 25% annually due to increased digital adoption and rising middle-class consumers.
- Middle East and Africa: Embedded insurance in this region holds a smaller share but is gaining traction, with expected growth at 20% CAGR by 2027. Countries like the UAE and South Africa lead in embedded insurance adoption, focusing on travel and health.
- Australia and New Zealand: In 2023, the embedded insurance market here was valued at $300 million, with a projected annual growth of 15%. Travel and health insurance are the primary segments driving expansion.
| Region | Market Share | Projected CAGR | Key Drivers |
| North America | 35% | 32% (through 2026) | Tech adoption, digital infrastructure |
| Europe | 25% | 28% annual | Regulatory support, major economies |
| Latin America | 7% | 25% annually | Digital adoption, middle-class growth |
Competitive Landscape and Market Leaders
- Cover Genius: Known for its global reach, Cover Genius is one of the leading embedded insurance platforms, facilitating policies in over 60 countries and raising $100 million in funding as of 2023.
- Trov: A pioneer in on-demand insurance, Trov has partnered with brands in various sectors, providing flexible, micro-duration policies for devices, vehicles, and more. Trov saw 20% revenue growth in 2023 alone.
- Lemonade: Known for its AI-driven technology, Lemonade has expanded its reach by embedding renters and pet insurance through e-commerce partnerships, with 80% of new policies acquired through embedded offerings in 2023.
- Qover: A significant player in the European market, Qover has increased its market share by 35% by partnering with digital banks and neobanks across the continent.
- BOLT Insurance Solutions: A US-based platform, BOLT provides comprehensive embedded insurance services to auto and home sectors, reaching $200 million in premiums through partnerships with car manufacturers.
- InsurTech Platforms: Companies like Wefox and Hippo are expanding their embedded insurance portfolios, focusing on streamlined digital experiences and quick claims processes.
- Zego: Specializing in embedded vehicle insurance, Zego expanded into multiple markets in 2023, targeting fleet and gig economy drivers, contributing to $150 million in revenue last year.
Customer Acquisition and Engagement Trends
- 73% of consumers are more likely to purchase insurance if it’s embedded in their primary buying journey, such as during an online retail or travel booking process.
- Personalized insurance offerings have been shown to increase customer engagement by 40%, with AI-powered recommendations allowing insurers to tailor policies in real time.
- Subscription models are gaining popularity, with 25% of embedded insurance policies now structured as monthly or annual subscriptions, particularly for health and device coverage.
- Referral and loyalty programs: Embedded insurers using loyalty incentives report 30% higher retention rates compared to traditional insurers, indicating a stronger connection with customers.
- Simplified claims processes: Companies offering one-click claims saw a 20% increase in customer satisfaction, with 45% of embedded policies now using digital-first claims for faster resolution.
- In-app notifications: Push notifications embedded in apps and e-commerce sites lead to a 50% higher engagement rate with customers for policy renewals and claims.
- Increased mobile use: Over 60% of embedded insurance purchases are completed on mobile devices, highlighting the importance of mobile-optimized experiences.
| Trend | Metric/Impact |
| Personalized offerings | 40% increase in engagement |
| Subscription-based policies | 25% of embedded policies |
| Referral and loyalty programs | 30% higher retention |
| Simplified claims processes | 20% customer satisfaction increase |
| In-app notifications | 50% higher engagement |
| Mobile device transactions | Over 60% of purchases |
Recent Developments
- Policy-as-a-Service (PaaS): In 2023, several InsurTechs launched PaaS solutions, allowing businesses to integrate and offer insurance policies seamlessly, a model projected to grow by 40% annually.
- Digital Claims Processing: Embedded insurers are adopting automated claims processes, which reduced claims processing time by 50% last year.
- Dynamic Pricing Models: The rise of dynamic, behavior-based pricing in embedded insurance led to 25% lower premium costs in auto and health insurance, especially among younger demographics.
- Sustainability Initiatives: Many embedded insurers now offer eco-friendly options or incentives for low-impact behaviors, with 15% of policies featuring a sustainability discount in 2023.
- Increased Partnerships with E-commerce Platforms: Platforms like Amazon and Shopify saw 50% growth in embedded insurance offers on their sites, contributing to the growth of device and returns insurance.
- Micro-Insurance Products: Designed for specific, short-term needs, micro-insurance policies grew by 18% in 2023, with significant uptake in sectors like travel and gadgets.
- Regulatory Changes: Governments in the EU and the US introduced guidelines to enhance transparency and data protection in embedded insurance in 2023, impacting how providers collect and store customer data.
| Development | Description | Projected Growth/Impact |
| Policy-as-a-Service (PaaS) | Integration of insurance policies by third parties | 40% annual growth |
| Digital Claims Processing | Automated claims, reduced processing time | 50% faster claims processing |
| Dynamic Pricing Models | Behavior-based premium adjustments | 25% lower premiums for young demographics |
| Sustainability Initiatives | Eco-friendly discounts | 15% policies with sustainability discounts |
| E-commerce Partnerships | Increased embedded insurance offerings | 50% growth on platforms like Amazon |
| Micro-Insurance Products | Short-term, specific coverage | 18% growth in 2023 |
| Regulatory Changes | New EU and US guidelines | Impact on data transparency |
Conclusion
Embedded insurance has evolved from a niche concept to a dynamic industry reshaping the insurance landscape. By making coverage accessible at the point of purchase, this model addresses consumer demands for convenience, personalization, and seamless experiences. The market is set to grow exponentially, driven by technological advancements, strategic partnerships, and expanding global reach. As embedded insurance continues to flourish, it offers a promising pathway for businesses across sectors to enhance customer value, improve engagement, and innovate the traditional insurance model. The future of embedded insurance looks bright, with more industries and consumers set to benefit from its transformative potential.
Sources
Barry Elad
Barry Elad is a dedicated tech and finance enthusiast, passionate about making technology and fintech concepts accessible to everyone. He specializes in collecting key statistics and breaking down complex information, focusing on the benefits that software and financial tools bring to everyday life. Figuring out how software works and sharing its value with users is his favorite pastime. When he's not analyzing apps or programs, Barry enjoys creating healthy recipes, practicing yoga, meditating, and spending time in nature with his child. His mission is to simplify finance and tech insights to help people make informed decisions.
