News 24/11/25

Embedded insurance: key points for safeguarding customer interests

Insurance is increasingly being sold outside the financial sector. This happens during the purchase process of another product or service, such as a holiday or concert ticket, often via platforms. This is referred to as embedded insurance. Embedded insurance offers convenience to customers but also carries risks, such as overinsurance or underinsurance. The Autoriteit Financiële Markten (AFM) recognises the opportunities of embedded insurance. That is why we provide clarity to providers and platforms on the statutory requirements and offer recommendations for safeguarding customer interests. These relate to licensing, product development, information provision, and further insurance services.

In short

Available both physically and online, via various types of platforms
Risk of less well-considered choices and overinsurance or underinsurance
AFM provides guidance for providers and platforms

Available both physically and online, via various types of platforms

Embedded insurance is not new, but digitalisation has accelerated its growth. The AFM highlights this in its publication 'Putting customer interests first in embedded insurance'. Embedded insurance occurs in both physical and online purchase processes. A well-known example is buying bicycle insurance in a bike shop, or cancellation insurance when purchasing an airline ticket or concert ticket online. The variety of platforms is large, ranging from small web shops to major (neo)banks that integrate insurance into paid subscription services. Insurance is increasingly being integrated into websites of non-insurers.

Risk of less well-considered choices and overinsurance or underinsurance

Embedded insurance can help prevent uninsured damage and enable more suitable products for customers. At the same time, there are potential drawbacks when customers make less informed choices and risk being overinsured or underinsured. In 2023, the AFM noted in 'Technology towards 2033' that insurance offered via embedded channels differs from traditional insurance in terms of coverage and duration.

AFM provides guidance for providers and platforms

Within the insurance sector, embedded insurance is expected to grow significantly. Its characteristics and growth forecasts have prompted the AFM to map out the opportunities and risks of this development and clarify relevant regulations for both providers and platforms. This includes licensing requirements, product development standards, and statutory obligations regarding information provision. With this guidance, parties involved in embedded insurance can ensure that customer interests remain safeguarded in their business models.