Embedded Insurance Market Report 2026

The embedded insurance market size has grown rapidly in recent years. It will grow from $116.05 billion in 2025 to $138.08 billion in 2026 at a compound annual growth rate (CAGR) of 19%. The growth in the historic period can be attributed to growth of digital commerce platforms, increased consumer demand for convenience, rising penetration of mobile insurance distribution, expansion of insurtech partnerships, availability of customer behavioral data.

The embedded insurance market size is expected to see rapid growth in the next few years. It will grow to $277.67 billion in 2030 at a compound annual growth rate (CAGR) of 19.1%. The growth in the forecast period can be attributed to increasing adoption of ai-driven underwriting models, rising expansion of embedded insurance across non-traditional sectors, growth of micro-insurance offerings, increasing regulatory acceptance of bundled insurance models, enhanced integration of claims automation. Major trends in the forecast period include increasing bundling of insurance with digital purchases, rising use of real-time risk assessment models, growing adoption of usage-based insurance products, expansion of in-app insurance distribution, enhanced focus on simplified claims processing.

The growth of the embedded insurance market is anticipated to be driven by the increasing adoption of digital platforms. Digital platforms refer to online systems that facilitate various services, including the purchase, management, and customization of insurance policies. This trend is driven by rising consumer demand for convenience, economic growth, technological advancements, and attractive pricing options. Digital platforms enable the integration of insurance services into non-insurance platforms via APIs, allowing businesses to offer insurance products directly within their digital ecosystems. For instance, data from the Bureau of the Census, a U.S. Federal Statistical System agency, shows that e-commerce sales in the first quarter of 2024 increased by 8.6% (±1.1%) compared to the first quarter of 2023, while total retail sales grew by 1.5% (±0.5%) during the same period. E-commerce sales represented 15.9% of total retail sales in the first quarter of 2024. This growing adoption of digital platforms is expected to drive the embedded insurance market.

Key players in the embedded insurance market are developing advanced solutions that leverage artificial intelligence to enhance claims processing, personalize insurance offerings, improve risk assessment, and bolster customer support. AI contributes to embedded insurance by automating processes, refining risk assessment, customizing offerings, and streamlining claims management. For example, in June 2024, Qover, a Belgium-based insurance company, introduced an AI-powered embedded insurance solution. This solution employs advanced data extraction technologies, including generative artificial intelligence (GenAI) and optical character recognition (OCR), to expedite and simplify the claims process. The integration allows for claim settlements within minutes of approval, boosting efficiency and user satisfaction.

In July 2025, ERGO Group AG, a Germany-based insurance and financial services company, acquired Next Insurance Inc. for an undisclosed amount. Through this acquisition, ERGO intends to expand its digital insurance offerings, reinforce its presence in the US market, and utilize Next Insurance’s technology to improve customer experience and simplify policy management. Next Insurance Inc. is a US-based insurtech company that focuses on delivering customized digital insurance solutions for small businesses.

Major companies operating in the embedded insurance market are Zurich Insurance Group Ltd., The Chubb Corporation, Acko General Insurance Ltd., Root Insurance Company, Next Insurance Inc., Zego, Lemonade Insurance Agency LLC, Vouch Inc., Getsafe GmbH, Hippo Enterprises Inc, Qover S.A./N.V, Hepster, Cover Genius Insurance Services LLC, Cuvva, Sure Inc., wefox Insurance AG, SimpleSurance, Trōv, CoverWallet Inc., Slice Insurance Technologies Inc., Boost Insurance USA Inc., Kasko Ltd., Bimaplan, Bsurance GmbH.

Asia-Pacific was the largest region in the embedded insurance market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the embedded insurance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the embedded insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The embedded insurance market consists of revenues earned by entities by providing services such as policy issuance and management, claims processing, customer support, real-time risk assessment and underwriting, billing and payment processing, and policy renewals and adjustments. The market value includes the value of related goods sold by the service provider or included within the service offering. The embedded insurance market also includes sales of point of sale (POS) systems, self-service kiosks, and payment terminals. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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