Embedded insurance explained

Embedded insurance builds protection directly into a product or service at the point of sale. Instead of sending customers elsewhere for insurance, a business offers relevant cover at the moment it matters: travel insurance while booking a flight, or device protection when buying a smartphone.

For the customer, it means one journey instead of two. For the business, it adds value to every sale and creates a new revenue stream. This guide covers what embedded insurance is made of, how it works with Fidamy and where it is heading.

How embedded insurance differs from traditional insurance

Traditionally, customers buy insurance separately. They search, compare, fill in long forms and end up with an insurer they have no other relationship with. Embedded insurance turns that around: the cover is designed for one specific product or moment, offered by the brand the customer is already buying from, and bought in the same flow.

Earlier forms of embedded cover, such as extended warranties at the till or rental car cover at the counter, were often one size fits all. Today's embedded insurance is digital from start to finish: priced for the specific product, issued instantly and claimed online, often through the same brand.

The key components

Every embedded insurance product is built from the same five parts.

• Premium. The cost of cover. It can be included in your product price or offered as a separate add-on.
• Policy. The contract that sets out what is covered. We write it in clear, customer-friendly language.
• Claims. How a customer gets help when something goes wrong, from reporting the damage to a repair, replacement or payout.
• Underwriting. Assessing the risk and calculating the price. Our platform does this automatically for every quote.
• Compliance. The regulatory requirements and licences that come with selling insurance, fully managed by Fidamy.

How it works with Fidamy

Fidamy handles the entire insurance journey, so you can offer cover without becoming an insurance company.

Product creation

We design the product with you, around your customers and what you sell. Whether you are a retailer, a marketplace, a travel platform or a mobility provider, we configure the right protection at the right price.

Seamless integration

You choose how deep the integration goes. Pre-built modules get you live quickly, from a partner link to a hosted flow that picks up the customer's details from your checkout. Our APIs give you full control over quotes, sales and policies inside your own experience. Both options handle policy issuance and premium collection automatically.

NoLongerLost launched with a partner link and no API work. Computerzaak sends customers from its checkout into a short express flow. Used Products went live in under seven weeks.

Full-service management

After the sale, we run the insurance operations: claims, customer support, compliance, reporting and analytics. You keep the customer relationship, and repairs can go to your own technicians or to repair partners such as The Phone Lab.

Why businesses offer embedded insurance

• More value for customers. Relevant protection, offered at the moment they need it.
• A new revenue stream. You earn commission on every policy sold.
• No operational burden. We handle the insurance work, from claims to compliance.
• Compliance covered. Our platform is built for the regulation that comes with selling insurance.
• Fast to launch. Go live in weeks, not months.

The benefits continue after the sale. When something breaks, customers come back to the brand they bought from rather than to an insurer they have never heard of. A claim handled well builds loyalty instead of eroding it.

What it means for customers

• One journey. No separate search and no second set of forms.
• Cover that fits. Protection designed for the product they are buying, not a generic policy.
• Clear terms. Plain-language conditions and a price shown upfront.
• Help from a familiar brand. Claims start where they bought the product.

Customer interest comes first

Embedded insurance only works if it is good for the customer. The Dutch Authority for the Financial Markets (AFM) made the same point in its November 2025 report, Putting customer interests first in embedded insurance: products should fit their target market, the way cover is offered should not push customers into choices they do not need, and information must be correct, clear and not misleading. We build products and flows on those principles from the start.

Where embedded insurance is heading

Embedded insurance is moving from a niche channel to a mainstream one. Strategy&, PwC's strategy consultancy, projects that it will capture USD 500 billion in gross P&C premiums by 2035 (opens in a new tab), around 20% of the global market.

New channels are opening up too. More people start their search in AI assistants, so together with NN Ventures we built a ChatGPT app that gives a personal device insurance quote in the conversation and a one-tap route to cover.

Talk to us

If you are exploring embedded insurance for your business, we are happy to walk you through what a launch would look like.