Embedded Insurance in Europe: A New Era of Financial Inclusion

The European embedded insurance market is undergoing a seismic shift, driven by strategic partnerships that are redefining financial inclusion and market dynamics. With a projected compound annual growth rate (CAGR) of 36.57%, the market is expected to surge from $3.05 billion in 2025 to $14.5 billion by 2030, according to a Mordor Intelligence report. This exponential growth is not merely a function of technological innovation but a response to evolving consumer demands and regulatory tailwinds. At the heart of this transformation lies a symbiotic relationship between traditional insurers, insurtechs, and non-insurance platforms, which are collectively dismantling barriers to access and reshaping distribution models.

Strategic Partnerships: The Engine of Growth

The integration of insurance into non-traditional touchpoints-such as e-commerce checkouts, Buy Now Pay Later (BNPL) services, and gig economy platforms-has been catalyzed by strategic alliances. For instance, AXA Partners and bolttech partnered in October 2025 to deploy embedded insurance solutions across the EU, UK, and Switzerland. By combining AXA's B2B2C expertise with bolttech's insurtech capabilities, the collaboration targets sectors like telecommunications and retail, enabling real-time underwriting and dynamic pricing. This partnership exemplifies how insurers are leveraging API-first architectures to accelerate deployment timelines, with embedded insurance now accounting for 74% of premiums flowing through online API channels, according to CoinLaw.

Another landmark case is UNIQA's collaboration with bsurance, which transformed the Austrian insurer into a tech-enabled player. Using a no-code, API-first platform, UNIQA launched products like parametric dental insurance and one-day ski accident coverage within months. This agility underscores the competitive advantage of partnerships that prioritize digital integration, allowing insurers to respond swiftly to niche market demands.

Financial Inclusion: Bridging Protection Gaps

Strategic partnerships are not only driving growth but also addressing systemic gaps in coverage. In Europe, low-income groups, gig workers, and migrants remain disproportionately underinsured, with private health and residential property insurance identified as critical needs, according to the Geneva Association. Embedded insurance's seamless integration into daily transactions-such as purchasing electronics or booking travel-has proven effective in reaching these populations. For example, travel insurance adoption rates hit 40% in embedded formats, compared to significantly lower rates in traditional channels, according to a MarkWide Research report.

In Central and Eastern Europe, UNIQA Dental's DSO programs have reduced treatment costs and expanded coverage for patients through partnerships with dental clinics. Similarly, Brazilian insurtech ToGarantido has partnered with platforms like iFood and Rappi to offer insurance tailored to gig workers, a demographic often excluded from traditional systems, according to the Center for Financial Inclusion. These initiatives highlight how embedded insurance, when paired with localized partnerships, can democratize access to protection.

Challenges and the Path Forward

Despite its promise, the sector faces hurdles. Fragmented national licensing requirements and data privacy concerns remain significant barriers to scalability, Mordor Intelligence notes. However, regulatory frameworks like the EU's Digital Finance Package and PSD3 mandates are fostering interoperability, enabling cross-border collaboration. Insurers that prioritize agile, API-driven platforms-such as Zurich's partnership with Ominimo and Allianz Partners' collaboration with Cosmo Connected-are better positioned to navigate these challenges, a MarkWide Research report finds.

For investors, the embedded insurance landscape presents a dual opportunity: capitalizing on a market projected to reach 30% of Europe's P&C insurance distribution by 2035, according to Insurtech Insights, while supporting initiatives that enhance financial resilience for underserved populations. The key lies in identifying partnerships that balance technological innovation with regulatory adaptability.

Conclusion

Embedded insurance in Europe is no longer a niche experiment but a cornerstone of financial inclusion. Strategic partnerships are the linchpin of this evolution, enabling insurers to expand reach, reduce costs, and tailor solutions to unmet needs. As the market matures, investors who align with forward-thinking collaborations-such as those between incumbents and insurtechs-will be well-positioned to reap the rewards of a sector poised for exponential growth.