Embedded insurance emerges as fastest-growing distribution channel

Nearly a third of professionals favour it over direct-to-consumer models.

Embedded insurance is gaining ground as the fastest-growing distribution model for personal lines, overtaking traditional channels, according to a Q1 2025 poll by GlobalData.

The survey, conducted on Verdict Media sites and participated in by over 170 industry professionals, found that 31.6% of respondents identified embedded insurance as the distribution channel with the strongest growth potential.

This was significantly higher than the 18.4% who favoured direct-to-consumer models and 17.2% who backed traditional broking networks.

It allows insurers to reach consumers who may not have otherwise actively sought insurance coverage.

Common use cases include offering travel insurance during flight bookings, motor insurance at the time of car purchases, or gadget insurance alongside electronic goods. 

GlobalData's lead Insurance analyst Beatriz Benito noted that this approach reduces marketing costs and can lead to more competitive pricing for consumers.