The collaboration aims to spearhead the development of digital insurance products tailored to meet the evolving needs of Japanese consumers.
In response to the changing dynamics of the digital economy, the Japanese insurance industry is undergoing a significant transformation. Post-COVID, consumers demand more efficient and seamless digital experiences, including personalized insurance purchase processes and real-time support.
The partnership between Smartpay and Chubb seeks to address these evolving consumer preferences while prioritising digital-first security measures and robust consumer data protection.
Sam Pemberton-Ahmed, CEO and Founder of Smartpay, said: “The vision we have as partners is ’embedded insurance’. Embedded insurance allows consumers to purchase insurance that complements the products they are purchasing, such as furniture and travel packages, at the point of checkout. By integrating insurance into the customer journey at checkout and providing it in a personalized manner, users can purchase insurance seamlessly at a price that suits their needs.”
The Japanese Travel Insurance Market, valued at USD 678.89 million in 2023, is forecasted to surge to USD 1523.76 million by 2028, indicating a remarkable compound annual growth rate (CAGR) of 17.55%. Post-pandemic, 47% of Japanese travelers who have invested in travel insurance are actively seeking alternative methods for purchasing policies beyond traditional channels. Embedded insurance is anticipated to emerge as the frontrunner in reshaping the insurance purchase landscape, facilitating new practices and catalyzing the expansion of Japan’s insurance market.
Forecasts indicate a substantial shift towards digital purchases in the Japanese insurance market, with an estimated addition of 80 trillion yen by 2027. This underscores the importance of embracing digitalization to cater to the changing preferences of Japanese consumers.
The collaboration between Smartpay and Chubb marks a significant milestone in driving innovation and digitisation within Japan’s insurance industry. Through their combined expertise and resources, they aim to revolutionise the insurance landscape, offering seamless digital solutions that align with the needs and expectations of Japanese consumers.
Pemberton-Ahmed added:, “We are honoured to collaborate with Chubb’s world leading team and insurance products to integrate with our Japanese leading payment and digital finance solutions.”
