Almost exactly one year ago, we published our thought leadership article "Embedded Insurance: Major Disruptor Can Bridge Huge Coverage Gap."
We pointed out that embedded insurance isn't new and that the wide-ranging, "at point of sale" opportunity is significant. Purchasing life insurance at the airport before flight departure was a perfect example of "version 1.0" of embedded insurance. We also shared a Forrester forecast that "the embedded insurance market is expected to grow from $156.06 billion of gross written premiums in 2024 to more than $700 billion by 2029, a CAGR of 35%."
It now appears that its growth is even greater than expected.
The embedded insurance market is now forecast to reach $1.1 trillion in global gross written premiums (GWP) by 2033, representing about 15% of the total GWP.
"Embedded insurance is becoming a growth engine for global financial services, a trajectory which reflects a customer- and technology-driven reshaping of how protection is bought, sold, and experienced," according to the latest Open and Embedded Insurance Observatory Report.
The report says the opportunity does not belong to banks and fintechs alone. Competition from adjacent industries is intensifying. Regulatory attention is beginning to focus on these models, which will require flexibility. Legacy IT systems are still a limitation for many incumbents, while data privacy and trust remain mission-critical.
A continuously evolving segment is auto insurance, added at point-of-sale together with a car purchase or lease. Although not a new concept, real-time insurance quotes are new and ease of adding or switching easily fits alongside financing and other add-on offers — all right at the dealership before driving off the lot. Numerous and growing insurer/car brand alliances, whether with or without driving data sharing, have popped up throughout the automotive industry. Such household purchases are major life moments, with an opportunity to switch insurers, hence the constant attention.
Embedded auto insurance
Of the many categories of embedded insurance, auto insurance represents an ideal opportunity and the most effective and frictionless delivery model. Consumers seek simplicity and one-stop purchase experiences, and their loyalty to auto insurers is eroding quickly in the face of continuing premium increases. Auto insurance is now a commodity, and switching is more frequent than ever.
According to Polly's Q2 2025 Quarterly Embedded Auto Insurance Report, the connection between insurance engagement and dealership profitability grew even stronger. Dealers who introduced insurance quotes into the sales process saw an average 20% lift in finance and insurance (F&I) gross profit — an extra $313 per deal.
When customers went a step further and purchased a policy, the effect was even greater. Those deals delivered a 31% lift in F&I gross, or $501 more per transaction.
The takeaway is clear: Whether a customer simply views quotes or binds coverage, insurance engagement is one of the most reliable levers for increasing dealership profit. It creates trust, keeps deals moving forward, and consistently raises the ceiling on F&I performance.
Technology-enabling embedded insurance
Insurtechs and integrations are the primary enablers and drivers of embedded insurance. This partnership benefits both customers and businesses by offering convenience, new revenue streams, and personalized coverage options powered by technology.
Selected insurtech companies specialize in enabling embedded insurance solutions for various industries:
- Cover Genius: Designs embedded insurance platforms for large brands like eBay, offering diverse coverage from shipping protection to rental car insurance.
- Clearcover: Has an embedded insurance strategy that includes partnerships with companies like Experian to offer bindable quotes to consumers when they are shopping for auto insurance.
- Roamly: Offers software tools and a platform that allows non-traditional insurers and other businesses, like car dealerships and marketplaces, to embed insurance into their workflows using APIs.
- Extend: Focuses on modernizing warranties and protection plans for e-commerce retailers.
- Wakim: Provides white-label, usage-based liability coverage for the gig economy and equipment rental.
- Zego: Uses application programming interface (API) technology to offer flexible commercial insurance to platforms such as Uber and Deliveroo, providing "pay-as-you-go" coverage for drivers.
- Bolttech: Provides a platform to embed tailored insurance products directly into existing customer journeys, from car dealerships to fintech apps.
- Matic: Offers an embedded insurance platform for financial institutions, allowing partners to offer competitive auto insurance options at the point of sale, particularly through partnerships with mortgage lenders.
- Tint Embedded Insurance: Helps brands embed insurance directly into their platforms, aiming to increase conversion rates and profitability by making insurance a feature, not a standalone product.
- Openkoda: Provides an open-source framework for building and deploying custom insurance applications, including embedded forms for quoting and policy sign-ups, with a focus on speed and control.
Auto insurance focus
Polly enables embedded auto insurance by integrating its digital insurance marketplace into the car-buying process at dealerships, allowing customers to compare quotes from multiple insurance carriers and purchase coverage at the point of sale. This seamless integration uses technology to connect the dealership's existing software with the insurance marketplace, so customers can get instant quotes and choose the best policy without leaving the dealership or going through a separate, time-consuming process.
Embedded auto insurance partnerships
Carvana and Root
Carvana and Root have a partnership where Carvana sells auto insurance, underwritten by Root, to its customers during the online car purchase process. Customers can get an insurance quote and bind a policy from Root directly through the Carvana checkout, streamlining the process of getting their new car covered. While Carvana is the seller, the actual insurance policy is with Root Insurance.
Stellantis and bolt
Stellantis has partnered with bolt, an insurtech company, to provide embedded auto insurance for its Chrysler, Dodge, Jeep, Ram, Fiat, and Alfa Romeo customers in North America. The partnership aims to simplify and personalize the insurance purchasing process by allowing customers to buy insurance directly through Stellantis brand websites and apps, with future plans for usage-based options using telematics data.
OEM role in embedded auto insurance
While auto manufacturers (OEMs) do not directly sell auto insurance at their dealerships, many major insurance companies partner with dealerships to offer insurance options on-site, and some financial services arms of OEMs offer insurance-related products.
OEMs like Tesla and Volvo are changing the game, making insurance part of the car ownership experience itself.
Insurance companies that partner with dealerships include Travelers, Zurich, and Ally, with some having a strong history in the auto industry. Dealerships often facilitate insurance by having agents or brokers available to help customers with insurance needs at the point of sale.
- Partnerships with insurance companies: Dealerships frequently partner with major insurance providers like Travelers, Zurich, and others to make insurance purchasing convenient for buyers.
- OEM financial services: The financial arms of some manufacturers, like Ally, have established insurance divisions specifically for the automotive sector, including dealerships.
- On-site agents: Dealerships often have insurance agents or brokers on-site to help customers who don't have current insurance or are unhappy with their existing provider.
Other noteworthy embedded models/partnerships
- Liberty Mutual partners with Jaguar Land Rover North America to provide tailored auto insurance solutions for Jaguar vehicle owners in the U.S. during the car buying process
- Tesla comes with built-in insurance features
- Toyota Auto Insurance is underwritten by Toggle, a digital and embedded insurance company that is part of Farmers Insurance
- INSHUR formed a partnership with ride-sharing service Uber in 2018 to embed insurance directly into Uber's platform, providing on-demand drivers with streamlined, personalized insurance coverage that adapts to driving schedules
- Turo, a peer-to-peer car-sharing platform, collaborates with Liberty Mutual to offer embedded insurance for its users
- Chubb just announced the debut of a new AI-powered optimization engine within Chubb Studio, the company's global technology platform for embedded insurance distribution partnerships. Sean Ringsted, chief digital business officer at Chubb, said the new tool lets digital distribution partners enhance engagement, improve conversion, and support financial resilience with relevant insurance protection.
Looking ahead
Implementing embedded insurance distribution channels is not a trivial undertaking, and there will be several technical, regulatory, business, and cultural obstacles, so you need to get started.
Whether you are an insurer, insurtech, agent, broker, MGA, retailer, wholesaler, or anywhere else in the insurance ecosystem and supply chain, you must invest now in learning how your business can participate in the embedded economy of the future.
