A new report from the Open and Embedded Insurance Observatory and discovermarket, a digital insurance platform, shows that 60% of online shoppers are more likely to complete a purchase when insurance is available at checkout
This growing interest in embedded insurance reflects a shift in how protection is delivered. The study estimates that embedded channels could make up 30% of global insurance policy distribution within the next five years, indicating wider adoption of this approach.
Rather than asking users to look for coverage separately, embedded insurance offers protection as part of digital platforms, like online shopping or financial services. It is designed to reduce the hassle of finding policies, filling out forms, or going through traditional insurance applications.
“Embedding insurance into the customer journey is about making protection a natural part of digital experiences,” said discovermarket. “It’s a way to meet users where they already are and build resilience into everyday interactions.”
This is especially relevant for cyber insurance, where the risks from fraud and cyberattacks continue to grow. Unlike traditional insurance models, embedded cyber protection is built into services people already trust and use. It offers users both convenience and peace of mind.
For telcos, fintechs, and digital platforms, this also opens up new ways to build customer loyalty.
“By offering cyber protection alongside their existing products, these companies go beyond providing connectivity or financial services,” said discovermarket. “They become trusted partners in digital safety.”
Examples include mobile or broadband plans that come with cyber insurance, or digital wallets that include protection against losses caused by online threats. Because the coverage is integrated into services users already access, it becomes easier to understand and use.
“Users prefer platforms that offer both smooth transactions and a sense of security,” said discovermarket. “As more trusted brands adopt embedded models, cyber protection will no longer feel like an extra; it’s part of the service.”
The report said that as this model grows, it will help build a stronger and more secure digital environment. Cyber risks become less of a hidden danger and more of a shared responsibility between providers and users.
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