Over the last two years, the embedded insurance segment has emerged as a high-growth area for providers. The demand has resulted in the availability of embedded insurance offerings across business verticals. From retail to travel and even pet care, the embedded insurance industry is rapidly expanding its presence. Amid the growing demand for embedded insurance, firms have continued to forge strategic alliances with businesses across industry verticals in Q1 2023.
Since it acquired TriCount in 2022, Bunq has become the second-largest neobank in Europe and is only behind Revolut. Consequently, the partnership with Bunq will enable Companjon to accelerate its growth and the adoption of its embedded insurance policies. In Europe, the embedded insurance competitive landscape is growing at a rapid rate, with many such strategic collaborations.
Qover, another embedded insurance provider, announced that the firm entered into a collaboration with a European business finance solution provider Qonto. Through its API-driven approach, Qover provides insurance services to fast-growing businesses in Europe. Some of its partners include Revolut, Rewire, and Monese. As of February 2023, the firm claims to protect over 800,000 people across the region. The card insurance service launched with Qonto will enable Qover to further extend its reach among Europeans.
The demand for embedded insurance products is also projected to grow rapidly in the Indian market, especially in the travel segment. Consequently, global players have been seen expanding their presence in the region.
Along with global players, domestic firms are also seeking to capitalize on the growing demand for embedded insurance services in the travel industry in India. Tata AIG General Insurance Company, for instance, partnered with AIX Connect, the budget airline, to offer embedded insurance policies for domestic air travelers in the country.
In another strategic alliance in the Indian market, Symbo India announced a partnership with delivery platform Borzo. The collaboration will enable Symbo India to benefit from a strong network of 50,000 gig delivery partners. In addition to reaching out to a growing fleet of gig delivery workers in India, the strategic alliance will also enable the firm to expand its B2B footprint.
In the pet care segment as well, the embedded insurance industry is seen expanding its footprint. For instance,
The space is projected to gain further traction among embedded insurance providers from the short to medium-term perspective in the global market. As more and more consumers seek convenient access and flexible solution, the demand for embedded insurance is projected to grow significantly over the next five years. Consequently, PayNXT360 expects more embedded insurance providers to expand their global and regional footprint through strategic alliances with businesses across different industry verticals. This will keep driving the competitive landscape as well as the growth of the embedded finance industry from the short to medium-term perspective.
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