Embedded insurance refers to any insurance that can be purchased within the commercial transaction of another product or service. It is a form of digital bundling that enables companies to offer insurance policies as an add-on, generally as a part of the purchase process. Embedded insurance is not a new innovation, as purchasing life insurance at the airport before a flight was the first version of embedded insurance. With the evolution of technology and online commerce, embedded insurance has taken different forms, including web-enabled embedded insurance, which allows customers to purchase insurance alongside digital products like concert or plane tickets.

Embedded insurance is an innovative way for businesses to integrate relevant risk protection into their customers purchase journeys, allowing them to include or add on coverage when buying their products or services. Coverage can be integrated with products and services in a variety of ways, such as add-on coverage for a product or service at the time of purchase, coverage that is included in the price of the core offering, or as an additional benefit to customers alongside other services.

Embedded insurance offers many benefits, including making it easier to purchase coverage, which can play a key role in helping to close the global insurance protection gap. It also makes insurance protection more accessible and inclusive across the globe. Customers are more likely to feel comfortable buying insurance via a familiar brand with which they have an existing relationship.

In summary, embedded insurance is a way for businesses to integrate insurance policies into their products or services, making it easier for customers to purchase coverage. It offers many benefits, including making insurance protection more accessible and inclusive across the globe.