At InsurTech Connect Asia (ITC Asia) 2025, industry experts highlighted the transformative power of embedded insurance, emphasizing its potential to revolutionize insurance distribution and solve real-world problems.
Yuri Poletto, founder and director of the Open and Embedded Insurance Observatory, explained how technology is reshaping the insurance landscape. With a single registration on a digital platform, consumers can access a broad ecosystem of products and services, often preferring trusted brands over traditional insurers.
“This is the concept of embedded insurance,” Poletto said, describing it as the integration of insurance products and services into everyday non-insurance transactions and experiences. He stressed that embedded insurance is more than just insurance software added to a product; it’s an insurance proposition seamlessly woven into ecosystems and software platforms.
“Embedded insurance outperforms traditional distribution models in customer reach,” he added.
Embedded Insurance Trends Across Asia
George Kesselman, CEO and founder of Insurtech Asia Association, noted Southeast Asia as a pioneer in embedded insurance. The region has seen strong adoption, with e-commerce companies leading penetration and sparking interest among other platforms. Examples include embedded travel insurance offered for cancellations.
China, another early adopter, leverages data-driven personalization, tailoring insurance offers based on user profiles, which boosts conversion rates. However, Kesselman observed that conversion varies widely — from double-digit rates for electronic devices with extended warranties to much lower rates where product fit is poor.
India’s embedded insurance market is marked by significant digital innovation, combining online and offline approaches. Its large market size enables sustainable experimentation compared to Southeast Asia’s more fragmented, early-stage market focused on personalization.
Environmental Impact Through Embedded Insurance
Brent Lehmann, head of commercial and affinity at WTW Australasia, shared a compelling example of embedded insurance applied to environmental conservation. The Great Barrier Reef is deteriorating rapidly due to starfish infestation caused by excess nitrogen entering the ocean from chemicals used by sugarcane farmers.
Though alternative chemicals were developed to reduce nitrate runoff, farmers were reluctant to switch due to yield concerns. To address this, an embedded parametric insurance program was created guaranteeing farmers’ financial returns if they adopted the new chemicals.
“Every chemical sold includes this insurance, which ensures farmers’ yields and financial strength,” Lehmann said. Since its launch two years ago, the program has contributed to noticeable improvements in the reef’s health.
Embedded insurance is emerging not only as a disruptive force in Asia’s insurance markets but also as a tool with real-world impact, proving that innovation in insurance can indeed help save the world.
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