The Latest Embedded Insurance Industry Statistics Explained
The Global Embedded Insurance Market size is expected to reach $328.4 billion by 2027
The statistic that the Global Embedded Insurance Market size is expected to reach $328.4 billion by 2027 indicates the projected value of insurance products that are integrated into non-insurance products or services. This growth forecast suggests a significant expansion in the market for embedded insurance, highlighting the increasing adoption of this business model across various industries. Factors such as evolving consumer preferences, advancements in technology, and the drive towards a more seamless customer experience are likely contributing to this anticipated growth. Companies operating in this space may need to adapt and innovate to capitalize on the opportunities presented by the expanding embedded insurance market.
The embedded insurance market is expected to expand at a 40% Compound Annual Growth Rate (CAGR) from 2021 to 2028.
The statement indicates that the embedded insurance market, which refers to insurance products that are included within other goods or services, is projected to experience rapid growth over the period from 2021 to 2028, with a Compound Annual Growth Rate (CAGR) of 40%. This means that, on average, the market size is expected to increase by 40% per year during this timeframe. The high CAGR suggests significant expansion opportunities in the embedded insurance sector, potentially driven by factors such as increasing consumer demand, technological advancements, and evolving business models that integrate insurance into various products and services.
In 2019, North America dominated the market with a share of more than 30%.
The statistic ‘In 2019, North America dominated the market with a share of more than 30%’ indicates that within the context of a specific market, North America held a significant portion of market activity relative to other regions or competitors. By having a share of more than 30%, North America exerted a considerable influence on the market dynamics, such as sales, revenue, or industry practices. This suggests that companies operating in North America likely played a crucial role in shaping the overall market landscape, potentially influencing product trends, consumer behavior, and competitive strategies within the industry during the specified year.
The automotive embedded insurance market segment is expected to reach $135.8 billion by 2028.
The statistic “The automotive embedded insurance market segment is expected to reach $135.8 billion by 2028” indicates the anticipated growth and value of the automotive embedded insurance market over the coming years. This prediction suggests that the demand for insurance solutions integrated directly into vehicles, offering services such as telematics-based coverage and personalized pricing, is expected to significantly increase by 2028. This substantial market value projection highlights the growing importance of embedded insurance in the automotive industry, reflecting consumer preferences for customizable and technology-driven insurance solutions. This statistic serves as a valuable insight for industry stakeholders, policymakers, and investors seeking to understand and capitalize on emerging trends within the automotive insurance sector.
The demand for embedded insurance in the APAC region is expected to grow at a CAGR of 41.4% by 2028.
The statistic suggests that the demand for embedded insurance, which refers to insurance coverage embedded within another product or service, is projected to experience a notable surge in the Asia-Pacific (APAC) region. The compound annual growth rate (CAGR) of 41.4% indicates a rapid and strong expansion of this market segment over the next few years, specifically by the year 2028. This substantial growth rate implies a rising interest and adoption of embedded insurance products by consumers and businesses in the APAC region, potentially driven by factors such as increasing awareness of the benefits of such insurance offerings, technological advancements, and shifting preferences among consumers seeking more convenient and integrated solutions.
The embedded insurance market in Europe accounted for 27.1% of global revenues in 2020.
The statistic indicates that the market for embedded insurance in Europe generated 27.1% of the total global revenues in 2020. Embedded insurance refers to insurance products that are integrated into non-insurance products or services, such as travel insurance bundled with airline tickets or extended warranties on electronic devices. This data suggests that Europe is a significant player in the embedded insurance industry, contributing significantly to the overall revenues generated worldwide. The high market share highlights the importance of Europe as a key market for embedded insurance products and services, showcasing the region’s strength and prominence in this sector.
Over 80% of consumers expect brands to provide more than just a product or a service – making embedded insurance a promising opportunity.
The statistic that over 80% of consumers expect brands to offer more than just a product or service highlights the evolving expectations of modern customers. In today’s competitive market, consumers are looking for added value and convenience beyond the core offerings of companies. Embedded insurance, which refers to integrating insurance services within the products or services of a brand, presents a promising opportunity for businesses to meet these heightened consumer demands. By providing insurance coverage seamlessly along with their primary offerings, brands can enhance the overall customer experience, build trust, and differentiate themselves from competitors. This statistic underscores the growing importance of meeting consumer needs holistically and suggests that integrating insurance could be a strategic move for brands looking to stay relevant and competitive in the marketplace.
The insurance penetration rate of embedded insurance in India was less than 4% in 2020.
The statistic indicates that the percentage of individuals in India who have embedded insurance as part of their financial products or services was very low, specifically below 4% in 2020. This suggests that a vast majority of Indians do not have insurance coverage included in their existing products such as bank accounts, credit cards, or other financial offerings. A low insurance penetration rate can be a cause for concern as it means that a large portion of the population may be left financially vulnerable in the event of unexpected events such as accidents, health issues, or natural disasters. This highlights the need for increased awareness and measures to promote the uptake of embedded insurance among the Indian population to enhance financial protection and resilience.
According to a survey by Lightico, 70% of insurance consumers are interested in embedded insurance policies.
The statistic from Lightico’s survey indicates that 70% of insurance consumers are interested in embedded insurance policies. Embedded insurance refers to incorporating insurance coverage into products or services, offering consumers a seamless and convenient way to protect their purchases. The high level of interest suggests that a significant portion of the surveyed insurance consumers see value in this innovative approach to insurance distribution. This data could be valuable for insurance companies looking to capitalize on the growing demand for embedded insurance products and tailor their offerings to meet consumer preferences, potentially leading to increased customer engagement and satisfaction.
Nearly 65% of millennials are likely to purchase insurance coverage from sources such as car rental or travel companies through embedded insurance offerings.
This statistic indicates that approximately 65% of millennials show a preference for purchasing insurance coverage from sources like car rental or travel companies that offer embedded insurance options. Millennials are a demographic group known for their interest in convenient and innovative solutions, and the concept of embedded insurance plays into this by seamlessly integrating insurance products into the purchase process of related services. This data suggests that millennials are receptive to the idea of acquiring insurance coverage through non-traditional channels, indicating a shifting trend towards more personalized and accessible insurance solutions within this demographic cohort.
Among 8,500 global insurance customers surveyed, 38% already purchased or are interested in purchasing insurance that is embedded in their car.
The statistic reveals that out of a sample of 8,500 global insurance customers surveyed, 38% expressed either a current ownership or interest in buying insurance products integrated into their vehicles. This suggests a substantial level of market demand and interest for insurance offerings that are embedded in cars. The statistic implies that a significant portion of the surveyed customers see value in this type of insurance, possibly due to convenience, cost-effectiveness, or other perceived benefits. Such insights are valuable for insurance companies and policymakers seeking to understand evolving consumer preferences and design products that cater to these preferences in the ever-changing automotive insurance market.
One report suggested that by 2025, embedded insurance could account for 25% of the world insurance market.
This statistic indicates that by the year 2025, embedded insurance is projected to make up a significant portion of the global insurance market, accounting for approximately 25%. Embedded insurance refers to insurance products that are bundled or integrated into other goods or services, such as travel insurance offered when booking a flight or extended warranty coverage on consumer electronics. This projection suggests a growing trend in the integration of insurance products into various industries and services, potentially providing consumers with more convenient access to insurance coverage while also presenting opportunities for insurers to expand their reach and distribution channels.
The UK represents roughly 5% of the global embedded insurance market.
The statistic stating that the UK represents roughly 5% of the global embedded insurance market signifies the proportion of the total embedded insurance market that is accounted for by the UK. Embedded insurance refers to insurance products that are integrated or bundled with non-insurance products or services, such as travel insurance included with a flight booking or warranty coverage included with a consumer good purchase. The 5% figure suggests that the UK is a significant player in the global embedded insurance industry, indicating a notable presence and market share relative to other countries worldwide. This statistic reflects the UK’s role and influence in the development and distribution of embedded insurance offerings, highlighting its relative importance in the global landscape of this market segment.
According to PWC, in 2019, embedded insurance added $500 billion to the global insurance premium.
The statistic states that in 2019, embedded insurance contributed $500 billion to the total global insurance premium, as reported by PWC. Embedded insurance refers to insurance products that are bundled or integrated within other goods or services, such as travel insurance offered at the time of booking a flight. This statistic indicates the significant impact and growth potential of embedded insurance as a distribution channel within the insurance industry. The substantial financial contribution highlights the increasing popularity and utilization of embedded insurance products on a global scale, demonstrating a growing trend in the industry’s evolution and adaptation to consumer preferences and market demands.
In 2020, embedded healthcare insurance coverage was $12.6 billion in the U.S.
The statistic states that in 2020, the total value of embedded healthcare insurance coverage in the United States was $12.6 billion. Embedded healthcare insurance refers to coverage that is included as part of a larger benefit or package, such as insurance provided by an employer as part of an overall compensation package. This figure represents the monetary value of the insurance benefits that individuals in the U.S. received through their employment or other means. The $12.6 billion indicates the significant financial support provided through embedded healthcare insurance in 2020 and underscores the importance of these benefits in ensuring access to medical care for millions of Americans.
The home segment of the embedded insurance market is expected to grow at a CAGR of 41.8% from 2021 to 2028.
This statistic indicates that the home segment of the embedded insurance market is projected to experience a Compound Annual Growth Rate (CAGR) of 41.8% from 2021 to 2028. This means that the value of insurance products integrated into the home sector, such as home insurance policies bundled with smart devices or home security systems, is anticipated to grow at a significant rate over the specified time period. A CAGR of 41.8% suggests a rapid expansion in market size, indicating a strong demand for embedded insurance products within the home industry and a growing trend towards integrating insurance solutions directly into home-related goods and services.
According to Zappix, mobile users’ adoption of embedded insurance is increasing at a rate of 20% per year.
The statistic provided by Zappix indicates that there is a noticeable upward trend in the uptake of embedded insurance among mobile users, with an annual growth rate of 20%. This suggests that more and more mobile users are opting for embedded insurance products and services over time. The 20% annual increase in adoption rate highlights a growing awareness and acceptance of the benefits and convenience offered by embedded insurance within the mobile industry. This trend may be driven by factors such as increasing digitalization, the demand for more seamless user experiences, and the desire for added protection and security while using mobile devices. Overall, the statistic indicates a significant and positive shift towards the integration of insurance products into the mobile ecosystem.
References
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