In Focus: Are brokers at risk of losing market share as embedded insurance grows?

Brokers are missing out on digital distribution opportunities and, as embedded insurance continues to grow as a model, they are at risk of disintermediation.

That was according to Simon Ball, director and co-founder at insurtech platform Embri, who told Insurance Times that embedded insurance was causing retailers to become “disruptors” to brokers.

Embedded insurance is a way for businesses to include insurance policies as an add-on to sales journeys and it is clear this approach presents a big opportunity for those that get it right.

For example, speaking on a panel at Insurance Times’ BrokerFest 2022 event, Yuri Poletto, founder and director at the Open and Embedded Insurance Observatory, said that embedded insurance could account for as much as 20% of the global insurance market “within the next 10 years”.

Quentin Colmant, chief executive at embedded insurance insurtech Qover, added that this market was “booming”.

He said: “What we have seen over the last year is that embedded insurance is really about ‘how can I fully integrate this service into my product’? 

“So, people are turning a product into more like a service with a full comprehensive offering.”

He noted his firm’s partnership with Canyon as an example, with Qover providing embedded products for the bike manufacturer.

Explaining the relationship, Colmant noted that Canyon’s aim for introducing embedded insurance ”was not to make money”, but to help the company’s customers ”focus on what matters, which is to ride their bike and enjoy the ride”.

Colmant continued: “[Customers] should not worry about theft and accidental damage. So, what we see is that insurance, [which used to be] a side product, is today a core part of any business.”

Due to the growth of appetite around embedded insurance options, Ball warned that brokers risk getting “left behind and missing out on the opportunity if they don’t get with the programme”.

He added: “Now, my concern about brokers is that they are focused on consolidation. Brokers are focused on the analogue approach as far as insurance is concerned and we’re already seeing them missing out on digital distribution opportunities.

“Brokers are going to see further disintermediation of this opportunity to insurtechs and people like us [who are] working with and empowering retailers to come into this market.”

’Disruptor’

Embri is an insurtech platform providing integrated and embedded insurance propositions to the high-end, luxury retail sector.

In February 2025, it partnered with tools and equipment retailer SGS Engineering, allowing the firm to launch an online embedded insurance proposition that offers customers theft and damage protection for its products directly at the point of sale.

Ball said that retailers were becoming a “disruptor” to the insurance sector and were “taking market share from brokers” thanks to tapping into embedded insurance models.

He continued: “If distribution is moving from analogue to digital – and brokers aren’t moving with it – that creates a vacuum.

“Who is going to fill it? Well, our hypothesis is retailers. The need is there, they’ve gone through that wave of technology shift with e-commerce and [the] shopping basket – digital omnichannel commerce – so they are the receptive audience.”

Insurer opportunity

As retailers become more receptive to the idea of embedded insurance, this also opens opportunities for insurers.

Insurers need to find partners to support distribution, as well as the correct technology partners to help with the delivery of insurance products.

If insurers can get this combination right, they could reap big benefits. For example, embedded products offer a cheaper distribution channel compared to traditional models – due to increased digitalisation – and the convenience factor of offering insurance within a customer’s existing purchasing journey for other goods or services could be said to offer a better or more engaging buying experience.

Colmant added that more risk carriers were building their own balance sheets dedicated to embedded insurance products.

“You take a risk carrier – they have many entities in many countries – and note they are building a dedicated entity that will use the freedom of service to have one balance sheet to provide embedded insurance across Europe,” he said.

“We see this as a big trend.”

Marcus Latchford, chief sales and distribution officer at Allianz Partners UK and Ireland, added that his firm was “actively involved” in the embedded insurance market.

“This approach is evident in partnerships where, for example, airlines offer travel insurance during flight bookings or retailers include extended warranties with electronic purchases,” he explained.

“Allianz sees significant growth potential in this market. Our broad range of insurance and service offerings, combined with our digital capabilities and strong partnerships, position us well to capitalise on this opportunity.”

Latchford added that embedded insurance was “becoming increasingly fundamental to insurer strategies due to its ability to meet customer demands for seamless protection through integrated digital journeys”.

He continued: “It not only enhances customer experience, but also allows insurers to take advantage of the growing trend of usage-based services, particularly in sectors like mobility.

“This approach not only boosts revenues, but also strengthens the relationship between insurers and their clients.”

Are there broker opportunities?

While it is clear that insurers and retailers can benefit from embedded insurance propositions, it begs the question as to whether there is a way for brokers to be winners in this area too.

After all, the shift to embedded insurance would likely create more direct purchases and, as Ball explained, brokers could face disintermediation.

However, Latchford said that embedded insurance also “opens new opportunities for brokers to adapt and innovate”.

He explained: “Brokers can play a crucial role in facilitating and managing embedded solutions, leveraging their expertise to ensure that the products meet consumer needs and regulatory requirements.” 

Peter Thompson, chair at Open GI, Uinsure non-executive director and former chief executive at BGL Insurance, added that “there is a massive role for brokers to be involved in embedded insurance”.

He said: “Firms that have a really digital relationship with their customers, that have got that embedded opportunity, are assessing our marketplace and saying ‘I can’t afford to tie my new capability and proposition to one risk carrier. They haven’t got the breadth of risk appetite and competitiveness to support all of my customers’.

“Therefore, a panel-based proposition has to be the way to support it – and who could help put together a panel-based proposition? Who is better placed than a sophisticated, partnerships-based affinity player that is an intermediary, that is used to running panels?

“It’s a no-brainer. There are a ton of opportunities out there if brokers want to open their eyes a little.”