Embedded insurance is expected to be the distribution channel with the strongest growth in personal lines insurance over the next five years, according to a GlobalData poll. Meanwhile, online travel platforms should consider introducing an embedded insurance feature, as the success of Hopper shows this integration can significantly boost revenue.
As part of GlobalData’s poll run on Verdict and BTMI sites in Q2 2025, 31.6% of industry insiders stated that embedded insurance will be the distribution channel that sees the most growth in personal lines insurance over the next five years. This reflects growing confidence in embedded models as insurers look to integrate coverage directly into digital customer journeys, reducing friction and making insurance purchases more convenient and contextual.
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The commercial case for embedded insurance is reinforced by significantly higher conversion rates compared to traditional standalone models. Analysis from KASKO’s and Swiss Re’s Embedded Insurance 2.0 study suggests that embedded distribution can generate conversion rates up to ten times higher than standalone offerings, highlighting the importance of delivering insurance at the point of need. The primary driver behind this gap is context, as consumers are more likely to engage with insurance products when they are presented during relevant purchasing journeys, such as booking flights or holidays, rather than being redirected to separate platforms at a later stage.
African travel platform Hopper provides one of the strongest examples of this model in practice. According to WiT and TechCrunch, around 60% of Hopper users purchase at least one fintech or protection product alongside bookings, while approximately 70%–75% of the company’s reported annual revenue is generated through these ancillary products rather than booking commissions alone. The platform has also demonstrated stronger customer retention, with users who purchase one embedded product significantly more likely to return and make repeat purchases in the future.
Overall, embedded insurance creates clear benefits for both insurers and online platforms by allowing coverage to be integrated directly into existing customer journeys at the point of purchase. For insurers, this can improve conversion rates, expand distribution reach, lower acquisition costs, and provide access to valuable customer data and partnerships. For online platforms, embedded insurance offers an additional revenue stream, increases customer engagement, and can strengthen retention by enhancing the overall user experience with added convenience and protection.
