Embedded Insurance Outpaces Traditional Channels in Personal Lines Growth

Embedded insurance is emerging as the fastest-growing distribution model for personal lines insurance, surpassing traditional channels. A Q1 2025 survey by GlobalData involving over 170 industry professionals found that 31.6% of respondents see embedded insurance as having the strongest growth potential, compared to 18.4% for direct-to-consumer models and 17.2% for traditional broking networks.

This model allows insurers to integrate coverage offers into related purchases, such as travel insurance with flight bookings or motor insurance with car purchases, expanding reach to consumers who might not actively seek insurance otherwise. Embedded insurance reduces marketing expenses and can contribute to more competitive pricing for consumers, according to industry analysis. These developments suggest a shift in insurance distribution dynamics, with embedded insurance playing an increasingly significant role in enhancing accessibility and customer engagement in the personal lines insurance market.