Consumers will increasingly be able to buy insurance at the point of purchase for almost anything important including travel, cars, homes, but also for a host of consumer goods.

Is it easier to buy travel insurance during the purchase of an airline ticket or auto insurance from the same vendor from whom you buy the car, or the car loan bank officer? Will it bring such insurance costs down?

This summer, Deloitte Insights predicted that embedding large-scale insurance and banking products or services at the point of sale will disrupt longtime distribution channels for insurance companies over the rest of this decade.

Insurers may also need to create an entirely new set of alliances with non-financial services partners.

Analysis published by Valuates Report projects the growth of the embedded insurance market at a compound annual growth rate of more than 24 per cent from an estimated $65.4 billion last year to a projected near $300 billion in 2029.

Embedded insurance has a number of potential advantages for both policyholders and insurers, the report said.

These advantages include lower administrative costs, better customer satisfaction and retention, greater access to data and analytics, a lower risk of claims and fraud, more convenience, better coverage, lower costs, and greater peace of mind.

There are a number of trends influencing the growth of the embedded insurance market, but there are potential obstacles according to the Deloitte report, especially from a regulatory viewpoint.

Consumer businesses hosting the embedded transaction will face a level of scrutiny because in delivering the financial service to customers, they will exert significant control and influence over the customer’s digital experience, especially in an age of data protection, privacy, and consumer complaints.

Does it mean auto dealers offering coverage as part of their embedded insurance sales pitch, for example, will have to be trained and licensed as insurance agents?

Will insurance regulators raise questions about transparency in how embedded coverage is priced, as well as whether or not customers are pressured to buy insurance from the auto dealer to get the best deal on their vehicle?

Already, ride-hailing services provide customers the choice to purchase ride protection insurance when they schedule a ride, Valuates Report points out.

The review said: “Embedded insurance saves policyholders time and money by removing the need to buy separate insurance policies. For people who lack the time or resources to examine various regulations, this might be extremely useful.

“When a requirement for coverage materialises, insurance products can be made available thanks to embedded insurance. As a result, it is much easier to buy insurance cover. This factor is expected to drive the growth of the embedded insurance market.”

Another factor is that embedded insurance offers clients extra protection that they would not have had access to under a conventional policy. They may feel more secure knowing that they have extra security in case of need.

Purchasing integrated insurance plans can frequently be less expensive than doing it separately. Customers may save money without sacrificing access to comprehensive insurance.