Common Misperceptions on Embedded Insurance

If one topic has dominated industry discussion in 2023, it’s embedded insurance— the concept of bringing personalized insurance products to customers during relevant digital journeys.

It’s not hard to see why. Allied Market Research reports that the global embedded finance market was valued at $66.8 billion in 2022 and is expected to reach nearly $623 billion by 2032. Within five years, more than 30% of all insurance transactions will likely occur within embedded channels, according to Ernst & Young. Nearly two in three Gen Zers and millennials and three in five Gen Xers are interested in accessing an average of 15 different embedded financial products from brand names they trust. And Deloitte predicts that, if as much as 20% of the U.S. personal auto market implements embedded insurance by 2030, $50 billion or more in premiums could be redirected away from the industry’s traditional distribution channels.