What is embedded insurance and how can it help you? 

MAWDY | 02.07.2026

MAWDY
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Purchasing insurance while booking a service or making a purchase is already part of many digital experiences. We analyze a trend that is transforming the way of generating value and growth in multiple sectors.

You book a trip. You choose flights, accommodation, activities… and just before confirming, the option to add insurance appears. One click, and done. Protection arrives at the exact time when it makes sense to purchase it. 

That is embedded insurance. An embedded insurance offering that’s integrated into the online purchase process for another product or service. The key difference from the traditional model is when the insurance is offered. In the past, buying insurance was a separate decision, with its own process and timeline. Customers had to remember to buy it, look for the right policy, and complete the purchase at a later time – often after the moment when the coverage was most relevant had already passed. 

Now, protection appears right when the customer is thinking about the risk. Anyone who buys a high-end mobile device is aware that something can break. Anyone purchasing a mobility service knows that unexpected situations can happen. 

Instead of being perceived as a standalone product, insurance becomes a seamless part of the purchasing experience.  

A market that is growing at full speed 

This is not an emerging trend. It is a transformation that is already happening on a large scale. 

According to the Embedded Insurance Market Report 2026, the global market will grow from $116.05 billion to more than $277 billion by 2030, with an annual growth close to 20%. Several reinforcing factors are driving these results.  

The first is convenience. Current consumers increasingly value frictionless experiences. If something can be resolved in the same digital environment where it already is, with a couple of clicks, that option always gains ground against more complex alternatives. 

The second is technology. Advances in platform integration have made it possible to connect insurance companies, distributors, and sales channels in a way that would have been unfeasible a few years ago. Today that infrastructure exists, is accessible, and makes it possible to offer protection in real time without interrupting the user experience. 

The third is the personalization. Customers expect proposals that make sense for what they are doing at each moment, adapted to their context and their needs. Embedded insurance meets that expectation precisely. Coverage is more relevant because it’s offered at the right time and in the right place – connected to a purchase the customer has already decided to make. 

It’s no surprise, then, that this model is gaining traction across industries as diverse as travel, retail, telecommunications, banking, and mobility.  

How does it work behind the scenes? 

From the user’s perspective, the process is completely seamless. An option appears, they accept it, and the coverage is activated. Simple. Behind the scenes, however, a technology infrastructure connects multiple stakeholders and automates much of the process. 

Everything happens smoothly, without redirects or interruptions.  Customers never have to leave the checkout flow, allowing the experience to remain consistent with the core product or service. 

What makes this model especially powerful is its flexibility. Insuring a weekend getaway calls for a different approach than covering an intercontinental flight, just as protecting an electric scooter used for daily commuting differs from insuring a fleet of company vehicles. This technological integration makes it possible to tailor the offering based on the product, service, sales channel, or customer profile – resulting in more relevant coverage and an experience that users perceive as genuinely valuable. 

What this means for your business?

Incorporating embedded insurance within your offer does not mean becoming an insurance company. It means adding value to what you already offer, at the moment it has the most impact for the customer, and doing so in a way that also generates return for your business. 

 

  • A more complete experience. Customers can address a need within the same purchase journey, without any additional effort. The result is higher customer satisfaction and a stronger relationship with the brand. 
  • Presence at the right time. Proposals appear when they have a real utility for the person making the purchase. That relevance increases interest and promotes greater acceptance.  
  • New avenues of growth. Integrating these services opens sources of income that complement the current model, without the need to change what already works.  
  • Differentiation. In markets where products and services compete under very similar conditions, providing peace of mind and confidence can become a distinctive advantage.  

How does Mawdy fit into all this? 

At Mawdy, we work with companies that want to take advantage of this opportunity, supporting them at every step of the process. 

Our international experience and technological capacity allow us to collaborate with our partners to identify where it makes sense to incorporate this type of insurance, design solutions tailored to each sector and business model, and help them integrate them into their processes and channels easily.  

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