Embedded Insurance Market Set to Reach USD 40.99 Billion by 2030, Amid Rapid API Adoption and Digital Partnerships

Mordor Intelligence has published a new report on the "Embedded Insurance Market" offering a comprehensive analysis of trends, growth drivers, and future projections

Introduction

The embedded insurance market is experiencing a period of significant expansion, reaching USD 10.45 billion in 2025 and expected to surge to USD 40.99 billion by 2030. This sharp growth reflects the increasing shift toward embedding insurance coverage directly within the customer journey, whether during online checkouts, in-app transactions, or as part of product and service bundles.

Rather than offering insurance as a standalone product, businesses across industries are now integrating policies seamlessly into their platforms, simplifying the purchase process and enhancing convenience. This trend is driven by the growing digital infrastructure, rise in e-commerce activities, increased demand for customized insurance offerings, and the rapid adoption of API-enabled integrations by insurers and distribution partners.

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Key Trends Driving Market Growth

1. API-Enabled Distribution Becoming the Standard

The rise of API-first distribution is one of the most critical forces shaping the embedded insurance landscape. APIs allow insurers to integrate directly with e-commerce platforms, mobility apps, consumer electronics retailers, and software-as-a-service (SaaS) providers. This not only reduces friction in the sales process but also enables real-time pricing and underwriting based on consumer behavior and transaction data.

The growing number of partnerships between insurance companies and digital platforms has created new revenue models for both insurers and non-insurance entities. These collaborations allow for faster go-to-market strategies and enable the personalization of insurance offerings at the point of sale, making insurance more accessible and tailored to individual needs.

2. Electronics Insurance Continues to Lead

Insurance coverage for electronics, especially smartphones, laptops, and home appliances, has emerged as the most widely adopted line of embedded insurance. With consumer electronics purchases increasing across online channels, offering protection plans during checkout has become a standard practice. The convenience of single-click coverage and simplified claims processes makes it an appealing option for consumers and a consistent revenue stream for retailers and insurers.

3. Auto and Mobility Insurance on the Rise

Embedded insurance in the automotive and mobility sector is growing at a strong pace. Automotive OEMs and mobility service providers are increasingly offering usage-based and pay-per-mile insurance options directly within their platforms. The availability of connected vehicle data has enabled insurers to provide dynamic pricing models, tailored to a driver's behavior and mileage, without requiring manual input from the consumer.

As electric vehicles (EVs) and shared mobility platforms grow, so too does the opportunity to integrate embedded insurance solutions that are usage-based and more cost-effective. This not only enhances the value proposition for consumers but also helps insurers reduce risk by leveraging real-time data.

4. Travel Insurance Gaining Visibility

Another growing segment is embedded travel insurance. Online travel booking platforms, airlines, and hospitality apps are embedding insurance into their service flows-offering coverage for trip cancellations, lost luggage, or medical emergencies with minimal effort from the consumer. This low-friction integration supports higher conversion rates and allows travel providers to deliver added value without the need for additional infrastructure.

5. Marketplaces and Vertical SaaS Powering Distribution

Marketplaces remain the dominant distribution partners for embedded insurance due to their vast transaction volumes and wide consumer reach. These platforms offer insurers access to a ready-made audience and the ability to scale quickly. Vertical SaaS platforms, meanwhile, are gaining ground by embedding insurance into the tools used by niche industries, such as fleet management software, logistics platforms, or home services applications, enabling context-specific insurance offerings to be delivered automatically.

6. Offline Integration Still Holds Value

While online distribution continues to dominate, offline integrations-such as insurance add-ons offered at the point of sale in retail stores or during vehicle purchases-still maintain relevance, particularly in developing markets or high-value product categories. These channels provide an opportunity to educate consumers and explain insurance benefits during physical transactions, enhancing trust and conversion.

7. Regional Dynamics Shaping the Landscape

North America is currently the largest market for embedded insurance, benefiting from well-established digital infrastructure and a strong insurtech ecosystem. However, Asia-Pacific is registering the fastest growth, driven by mobile-first economies, rising digital literacy, and the rapid expansion of fintech platforms and super-apps. In these regions, embedded insurance is addressing previously underserved markets by simplifying insurance access through trusted digital platforms.

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Market Segmentation

The embedded insurance market is segmented into various categories based on product, channel, industry, platform, and geography:

By Insurance Line:

Electronics

Furniture and Home Appliances

Travel Insurance

Auto and Mobility

Others

By Distribution Channel:

Online (API-Based, In-App, Checkout Integration)

Offline (Retail Stores, Dealerships, Branch-Based Sales)

By End-User Industry:

E-Commerce Platforms

Mobility and Automotive OEMs

Consumer Electronics

Travel and Hospitality

Other B2B and B2C Platforms

By Platform Partner Type:

Marketplaces

Vertical SaaS Providers

Fintech Platforms

Direct-to-Consumer Apps

By Region:

North America

Europe

Asia-Pacific

Latin America

Middle East and Africa

Each of these segments presents distinct opportunities for insurers, distributors, and technology enablers, depending on factors like consumer behavior, regulatory environment, and digital maturity.

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Key Players

The competitive landscape of the embedded insurance market includes a diverse mix of insurtechs and traditional insurance companies that are increasingly focusing on digital partnerships and flexible offerings.

Lemonade: Known for its simple user interface and fast claims processing, Lemonade is leveraging AI and data analytics to expand its embedded offerings across partner platforms.

Cover Genius: A global embedded insurance specialist, Cover Genius partners with online travel agencies, retailers, and logistics companies to offer customized protection at checkout.

Bolttech: This digital insurance ecosystem offers a wide range of embedded insurance solutions, connecting insurers with digital partners via its exchange infrastructure.

Qover: Qover provides modular insurance infrastructure that enables businesses across sectors to embed and manage insurance programs easily.

Assurant: With a strong legacy in device protection and extended warranties, Assurant is actively collaborating with e-commerce and telecom companies to expand its embedded insurance footprint.

These players continue to invest in API development, compliance management, and partner integration to deliver scalable, efficient insurance models that serve both consumers and platform operators.

Conclusion

The embedded insurance market is no longer a niche concept-it is rapidly becoming a key distribution strategy across industries. As consumer expectations shift toward convenience, transparency, and personalization, embedded insurance offers a practical solution that blends coverage into everyday digital experiences.

This model benefits insurers through reduced acquisition costs, helps platforms increase revenue per user, and gives consumers easier access to relevant protection. Going forward, success in this space will depend on the ability to form meaningful partnerships, offer tailored products, and maintain compliance in a cross-border digital environment.

With strong growth anticipated over the next five years, embedded insurance is set to become a central part of the global insurance distribution landscape.

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