Dublin, March 18, 2022 (GLOBE NEWSWIRE) -- The "Asia Pacific Embedded Insurance Business and Investment Opportunities - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.
Asia Pacific Embedded Insurance industry is expected to grow by 32.3% on annual basis to reach US$24,127.3 million in 2022.
The embedded insurance industry is expected to grow steadily over the forecast period, recording a CAGR of 21.6% during 2022-2029. The embedded insurance revenues in the region will increase from US$24,127.3 million in 2022 to reach US$71,855.4 million by 2029.
The Asia Pacific is the largest embedded insurance market. The region is home to one-third of the world's population and one of the world's fastest-growing economies. The most significant number of insurtech firms are emerging in China and India. This is primarily due to a large uninsured population and the strong growth of the fintech industry.
Insurers and insurtech firms are widely experimenting with new insurance offerings, distribution models, and technological advancements resulting in innovations. In the recent four to eight quarters, there has been a significant increase in the number of funds raised by market players in the embedded insurance ecosystem.
Additionally, substantial growth in digitization in emerging countries such as Indonesia, Malaysia, Thailand, India is attracting the attention of market players. However, the number of technology companies trying to underwrite and sell policies will be limited in the region due to regulatory restrictions on issuing carrier licenses.
Insurers are making strategic investments in insurtech firms to expand their digital distribution channels
Leading insurance companies are planning to expand their operations across the globe, taking advantage of the tremendous growth opportunity that exists in the global embedded insurance industry.
- In September 2021, Singapore-based insurance provider Sompo Holdings (Asia) Pte. Ltd. (Sompo Asia) made an investment in Cover Genius, a United States-based insurtech firm and embedded insurance company.
- This is a strategic move by Sompo Holdings to expand its distribution channels in the embedded insurance market by leveraging Cover Genius' global network.
- Cover Genius has many e-commerce platforms as partners in multiple industries, including Booking Holdings, Skyscanner, Ola, Intuit, Shopee, and other well-known leading brands, across the globe.
- According to Sompo Holdings, the company is planning to utilize Cover Genius's client network to embed its insurance products and enhance distribution channels.
- Conversely, Cover Genius will utilize the support from Sompo Holdings to expand its global insurance distribution platform.
New embedded insurance products are being launched by market players to tap the growing demand for goods in transit protection
Over the last few quarters, the e-commerce industry has been one of the fastest-growing Asia-Pacific sectors. The domination of the Asia-Pacific e-commerce market is due to the massive increase in digital sales and the existence of e-commerce giants such as Alibaba, JD. Com, Flipkart, and Shoppe, in the region.
Covid-19 has accelerated the expansion of the e-commerce market, with the sector expected to expand further over the next four to eight quarters. Increased number of merchants partnered with e-commerce giants to continue their businesses during the lockdown.
This strong growth in the e-commerce industry has resulted in tremendous demand growth for insuring goods in transit. Moreover, Insurance companies and insurtech firms are launching new products to cater to the fast-growing demand for protecting goods in transit.
- In August 2021, Australian Insurtech Agile launched embedded insurance for inland transit. Agile Underwriting Services has added inland transit to its ever-expanding product portfolio.
Scope
Region and countries
- Asia Pacific
- Australia
- Bangladesh
- China
- India
- Indonesia
- Japan
- Malaysia
- South Korea
- Philippines
- Singapore
- Taiwan
- Thailand
- Vietnam
Embedded Insurance Market Size and Forecast
Embedded Insurance by Industry, 2020 - 2029
- Embedded Insurance in Consumer Products
- Embedded Insurance in Travel & Hospitality
- Embedded Insurance in Automotive
- Embedded Insurance in Healthcare
- Embedded Insurance in Real Estate
- Embedded Insurance in Transport & Logistics
- Embedded Insurance in Others
Embedded Insurance by Insurance Type, 2020 - 2029
- Embedded Insurance in Life Segment
- Embedded Insurance in Non-Life Segment
Embedded Insurance by Type of Offering, 2020 - 2029
- Embedded Insurance in Product Segment
- Embedded Insurance in Service Segment
For more information about this report visit https://www.researchandmarkets.com/r/fxba3y
