What Is Embedded Insurance?

Embedded insurance refers to the integration of insurance products directly into a consumer's purchase journey—at the point of sale or within an existing service flow. Instead of redirecting users to a separate insurance platform or website, coverage is offered seamlessly within the user experience.

For example, when buying a concert or train ticket, you might be offered ticket cancellation insurance with a simple checkbox during checkout. It’s not a separate transaction—it’s built in. The insurance is added to your cart with one click, alongside the primary purchase, and confirmed in the same email receipt.

This approach significantly improves engagement by removing friction. Where traditional insurance might require a new window or separate sign-up process, embedded insurance keeps everything in one place.

Learn more about our platform and how it works here https://beloy.com/platform 

As McKinsey notes in their report on embedding insurance into the customer experience, the concept of selling insurance at the point of sale of another purchase has been around for quite a while, but the way it is presented nowadays feels more integrated. 

How Does Embedded Insurance Actually Work?

Behind the scenes, embedded insurance relies on APIs (Application Programming Interfaces). APIs act like invisible connectors that allow different systems—such as a merchant’s website and an insurer’s backend—to “talk” to each other.

Imagine them like digital strings pulling information between systems in real time. They allow for live data exchange, automated policy generation, and instant confirmation for both customers and insurers.

Setting this up can be complex—but BELOY simplifies the process. Our proprietary platform builds custom integrations between consumer-facing websites and insurance partners.

In this model:

Accenture emphasizes how this model is reshaping the market in their article on "Embedded Insurance: a brief overview".

A Real-Life Example

Let’s return to the train ticket example. You select your date and destination. Before you pay, there’s an option to add cancellation insurance. If you choose it, the small cost is added to your basket.

When you check out, you’ve purchased both the ticket and the insurance in one transaction. The policy is confirmed by email, and you don't need to leave the site or fill out separate forms.

If you later need to cancel your trip, the process is simple: the information is already on file, and the insurer (not the brand) handles the claim. BELOY transfers the premium from the customer to the insurer and ensures the backend systems work smoothly together.

Why Embedded Insurance Is Good for Everyone

This model brings major benefits:

• For consumers: It’s fast, intuitive, and offers peace of mind

• For brands: It creates upsell opportunities, improves customer loyalty, and adds new revenue streams

• For insurers: It opens new digital distribution channels without needing to build them from scratch

With BELOY acting as both the broker and the tech provider, we’re uniquely positioned to deliver embedded products that are simple to launch and valuable to end users.

Overcoming Challenges and Building Trust

One challenge is building trust with consumers. Many people have experienced upsells that feel misleading or irrelevant (e.g., low-cost travel add-ons that lack transparency).

That’s why BELOY works closely with both brands and insurers to design compelling, honest offerings based on market data and customer feedback. Because we control both the technology and the insurance relationships, we can help tailor each product to its audience.

Why Embedded Insurance Is the Future

Today’s consumers expect frictionless experiences—whether online or offline. Embedded insurance delivers on that expectation by simplifying an otherwise complex product. Take car hire, for example: the traditional insurance sales process is often confusing and unpleasant. Now, insurance can be built directly into the booking platform, making it faster, clearer, and more attractive to the customer.

As digital commerce continues to grow, embedded insurance will become a key differentiator for brands who want to build trust, close protection gaps, and unlock new revenue.

Learn More

Want to explore how BELOY can help you design and launch your own embedded insurance program? Get in touch with us here or explore our embedded insurance solutions.