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UK Embedded Insurance Market Analysis, Key Trends and Strategies, Line of Business and Future Implications

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  • 31 Pages
  • April 2023
  • Region: United Kingdom
  • GlobalData
  • ID: 5793735
Embedded insurance is the bundling of insurance or protection within the purchase of a third-party good or service. For example, travel agents offer travel insurance as an add-on to a holiday package. This report explores the impact embedded insurance is having on the industry.

The growth in ecommerce and mobile commerce, along with a host of technological advances in the industry, have brought in a new age of embedded insurance. Almost all lines of business either have been disrupted to some extent or are ready for this next stage of digital distribution. Car manufacturers, travel agents, technology providers, and retailors alike are all able, to some extent, to offer insurance to their customers at the point of sale. Insurers must be prepared to meet this growing demand for insurance distribution, both for simplicity for the customer and as a revenue earner for the insurer and third-party provider. Insurtechs and API providers, built in a digital era, are better suited to integrating insurance product offerings with third-party platforms. Legacy players must be willing to partner with these digital startups and third-party players as digital ecosystems emerge across a range of industry verticals.


  • According to the publisher's 2022 UK Insurance Consumer Survey, only 2.7% of UK motor insurance consumers purchased their insurance from their car manufacturer in 2022. Tesla, however, sold its insurance product to 17% of its customers in Q4 2022, showcasing the disruptive potential of embedded insurance
  • The publisher's 2022 UK Insurance Consumer Survey suggests that consumers are open to purchasing home insurance from Big Tech players. Google is the most popular, with 21.5% of home insurance customers, followed by Amazon (16.1%), Samsung (11.2%), and Apple (10.7%). These figures all rise when only considering customers under 40

Reasons to Buy

  • Determine the primary trends driving embedded insurance across key lines of business
  • See how the growth of open insurance and digital ecosystems presents a major opportunity for innovative and forward-looking insurance players
  • Assess the threat and impact of new non-insurance players in the market
  • Identify key affinity, insurtech, API, and legacy players in the embedded insurance segment from across the industry
  • Ascertain the regulatory and technological challenges facing embedded insurers.

Table of Contents

1. Executive Summary
1.1 Market overview
1.2 Key findings
1.3 Critical success factors
2. Key Factors Affecting Embedded Insurance
2.1 Embedded insurance
2.2 Technological evolution is driving embedded insurance
3. Industry Use Cases and Line of Business Analysis
3.1 Motor insurance could be set for significant disruption
3.2 Travel is most associated with embedded insurance
3.3 Property insurance will be affected by smart home policies
3.4 Affinity providers are entering gadget insurance markets
4. The Next Stages of Embedded Insurance
4.1 API providers are driving the embedded insurance trend
4.2 Regulatory challenges are an important hurdle to overcome
4.3 Tech players will drive both challenges and opportunities
4.4 Embedded insurance can still pervade new lines
4.5 Future brokers can embrace and use embedded insurance
5. Appendix
5.1 Abbreviations, initialisms, and acronyms
5.2 Methodology
5.3 Secondary sources
5.4 Further reading
  • About the Publisher
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List of Tables
Table 1: There is a wide range of factors driving and affecting embedded insurance
Table 2: Auto manufacturers are partnered with a range of motor insurers
Table 3: How and why digital players are leading the way in embedded insurance
List of Figures
Figure 1: Less than 3% of UK motor insurance customers bought their policy from an OEM in 2022
Figure 2: Nearly one third of SMEs have UBI motor insurance, with many more interested in the savings
Figure 3: Over a third of global travel insurance customers bought their policy from a travel agent in 2021
Figure 4: Over a third of consumers do not know about COVID-19-related exclusions in their travel policy
Figure 5: Expedia and Booking.com are the most popular travel sites for buying travel insurance
Figure 6: Younger consumers are more open to purchasing home insurance from technology providers
Figure 7: Embedded extended warranties are frequently purchased by UK consumers
Figure 8: Consumers have an interest in buying gadget insurance from tech providers and manufacturers
Figure 9: Lemonade’s API or widget can be easily integrated into retailers’ sites
Figure 10: Health insurers must overcome data privacy barriers to grow the uptake of smart health policies

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Google
  • Amazon
  • Samsung
  • Apple
  • Swiss Re
  • Tesla
  • Zurich
  • Ping An
  • Discovery
  • LV=
  • Allianz
  • Admiral
  • Nationwide
  • American Family
  • AXA
  • First Underwriting
  • Liberty Mutual
  • MS&AD
  • Inshur
  • Zego
  • flock
  • Uber
  • Cover Genius
  • Battleface
  • Aribnb
  • Vrbo
  • Onefinestay
  • Expedia
  • Booking.com
  • Sky
  • ADT
  • Ikea
  • EE
  • Neos
  • Wakam
  • Cover Genius
  • Wrisk
  • Penni.io
  • Ancileo
  • MIC Global
  • Redkik
  • Lloyd’s
  • Lemonade
  • Twitter
  • WeChat
  • Alipay
  • Paytm
  • Alan
  • Oscar
  • YuLife
  • Garmin
  • Virgin Active
  • Beazley
  • Assureful
  • Chwey
  • Trupanion
  • Barkibu