Smartpay and Chubb launch embedded insurance services in Japan

Launching a new product integrating payments and insurance

The traditional insurance industry faces challenges in meeting the evolving needs of consumers. Insurance contracting in Japan is still largely reliant on paper-based analogue processes, leaving room for digitalisation, real-time capabilities, and better security.

According to the Ministry of Economy, Trade and Industry’s survey, cashless payments now account for approximately 50% of consumers’ monthly spending, with the adoption of credit cards, electronic money, and other diverse payment methods being widespread. Smartpay sees this trend as an opportunity for the insurance industry to adopt digitalisation and improve customer experience. With embedded insurance integrated into the payment process, Smartpay and Chubb aim to transform the insurance industry and provide appropriate coverage instantly.

Smartpay and Chubb plan to provide their first embedded insurance product through BNPL in partnership with Fútbol Opción, a football cultural exchange program provider, in the summer of 2025. With this collaboration, Smartpay's instalment payment option helps children reach their goals while reducing the burden on household finances and offering insurance coverage during international travels. Through this partnership, families can now handle both program fee instalments and insurance enrolment in one process, making soccer exchange opportunities accessible to more young people.

Benefits of embedded insurance

The global embedded insurance market size is projected to grow CAGR of 11.6% from 2024 to 2030, reaching approximately USD 175.25 billion by 2030. By region, the Asia-Pacific is the largest market, accounting for approximately 39% of the share. By product type, life insurance is the largest segment, and by application, the automotive sector is the most prevalent.

Embedded insurance provides multiple benefits, including real-time risk assessment and pricing, which often helps keep insurance premiums lower, a secure complex infrastructure, and the minimisation of complicated procedures. This enables appropriate insurance enrolment at the time of purchase with an intuitive and user-friendly experience.