Embedded Insurance Market Report, Analysis, Opportunities by 2031
The embedded insurance market size is expected to grow at a CAGR of 34.12% from 2023 to 2031. The growth in e-commerce and mobile commerce, along with technological advancement in the industry, is driving the embedded insurance market growth. Embedded finance, among the upcoming trends on the financial services horizon, has the potential to have the greatest impact on the industry's development. Embedding large-scale insurance and banking products or services at the point of sale could disrupt long-time distribution channels during the rest of this decade. Still, it may also result in the creation of an altogether new set of partnerships with nonfinancial services partners.
Embedded Insurance Market Analysis
A number of factors are driving the growth of the embedded insurance business. First, it has provided a means of reaching new client segments and expanding insurance coverage by integrating insurance products into popular platforms with big user bases. This method has enabled insurers to use existing client relationships and provide insurance solutions at the time of need. In terms of market players, both traditional insurance companies and insurance technology startups are looking into embedded insurance potential. Traditional insurers tried to capitalize on their experience and established customer base, while insurance technology companies aspired to develop the sector with creative technology solutions and partnerships with platform providers.
Embedded Insurance Market Industry Overview
- Embedded insurance addresses the problem of underinsurance or lack of awareness by making coverage relevant and easily accessible to customers. Embedded insurance had the potential to increase client involvement and loyalty. Insurers might establish tailored and contextually relevant offers by seamlessly incorporating insurance into everyday products or services.
- Embedded insurance is a type of digital bundling that allows businesses to provide insurance plans as an add-on, typically as part of a digital sale. This means that the insurance product is not sold on an ad hoc basis to customers. Instead, it becomes available as a feature of their purchase.
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Embedded Insurance Market: Strategic Insights
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Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Embedded Insurance Market: Strategic Insights
Naveen
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Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
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Embedded Insurance Market Driver and Opportunities
Increasing Life Insurance Premiums to Drive the Embedded Insurance Market
- Life insurance policies have become increasingly accessible and affordable, making them appealing candidates for inclusion in embedded insurance solutions. Life insurance rates have become more competitive and accessible as a result of technological improvements, improved underwriting processes, and more competition among insurers, making them an attractive component of embedded insurance solutions.
- With the help of embedded insurance, non-insurance platforms can provide life insurance coverage to customers directly within their user experiences through partnerships with life insurance providers. This, in turn, is expected to drive market growth during the forecast period.
Increasing Demand from Developing Economies to Create Lucrative Market Opportunities
- Asia Pacific region has seen substantial expansion in digitization and e-commerce, with a vast populace using online platforms for a variety of purposes. This digital shift has opened up chances for insurance companies to collaborate with e-commerce platforms, ride-hailing applications, financial technology companies, and other digital service providers to easily provide insurance coverage within their platforms.
- Asia has a high rate of smartphone adoption, with a substantial share of the population accessing the internet via mobile devices. This extensive mobile usage opens up a handy channel for delivering embedded insurance solutions, allowing customers to access insurance products and services via mobile apps and websites. This, in turn, is expected to create lucrative growth opportunities.
Embedded Insurance Market Report Segmentation Analysis
The key segments that contributed to the derivation of the embedded insurance market analysis are the insurance line and channel.
- The market is segmented by insurance line into electronics, furniture, sports equipment, travel insurance, and others.
- The market is segmented by online and offline channels.
- The development of digital platforms and technical advancements is driving the expansion of Embedded Insurance, which allows for seamless integration and distribution of insurance products across many channels expected to boost the growth of the online channel segment during the forecast period.
Embedded Insurance Market Share Analysis By Geography
- The scope of the embedded insurance market is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America.
- Asia Pacific is one of the substantial markets. The region is home to one-third of the world's population and has one of the fastest-growing economies. The majority of insurance enterprises are emerging in China and India. This is primarily owing to a huge uninsured population and the rapid expansion of the fintech industry. This, in turn, is anticipated to boost the market growth in this region during the forecast period.
Embedded Insurance Market Report Scope
Embedded Insurance Market News and Recent Developments
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the embedded insurance market. Some of the recent key market developments are listed below:
- November 2023: NJJ, a telecommunications conglomerate, collaborated with Bolttech, an Insurtech company, to offer mobile device insurance for mobile operators. [Source: Bolltech, Company Website]
Embedded Insurance Market Report Coverage & Deliverables
The embedded insurance market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Embedded Insurance Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-
- Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities.
- Key future trends.
- Detailed PEST & SWOT analysis
- Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
- Detailed company profiles.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
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to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
The major players holding majority shares are Lemonade, Metromile, Slice, Hippo, and Root Insurance So
Asia Pacific is anticipated to grow with a high growth rate during the forecast period.
The global embedded insurance market was estimated to grow at a CAGR of 34.12% during 2023 - 2031.
Expansion across various industries and digitalization and technology adoption in the global embedded insurance market.
Opportunities for insurers and partners and integration of insurance with products and services are the major factors that propel the global embedded insurance market.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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