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PRNewswire
Tokyo [Japan], March 6: Smartpay Corporation (Headquarters: Minato-ku, Tokyo; Sam Pemberton-Ahmed, CEO and Founder of Smartpay; hereinafter "the Company"), provider of the "Smartpay" Buy Now Pay Later service, announces the launch of embedded insurance products in the Japanese market, following one year of partnership with Chubb Insurance Japan (Headquarters: Shinagawa-ku, Tokyo; President: Edward Kopp; hereinafter "Chubb Japan"), the Japanese subsidiary of Chubb Group, a world leader in insurance. Current Challenges in the Insurance Industry The traditional insurance industry faces challenges in meeting the evolving needs of modern consumers. Insurance contracting still largely relies on paper-based analog processes, leaving significant room for improvement in digitalization, personalization, real-time capabilities, and security. According to the Ministry of Economy, Trade and Industry survey[1], cashless payments now account for approximately 50% of consumer monthly spending, with widespread adoption of diverse payment methods including credit cards and electronic money. The insurance industry has an opportunity to enhance consumer experience by embracing digitalization to capitalize on this trend. Changes in the insurance industry are becoming evident across various sectors. For example, Japan's travel insurance market reached $678 million (approximately Y=101.7 billion) in 2023 and is projected to grow to $1.523 billion (approximately Y=228.5 billion) by 2028[2]. Furthermore, post-pandemic surveys indicate that 47% of Japanese travelers are seeking new ways to purchase travel insurance that differ from traditional methods[3]. Additionally, Generation Z consumers tend to prioritize convenience and speed in payment experiences and dislike complicated procedures[4]. These changes in young consumers' behavior are driving the demand for embedded insurance that can be completed with simple operations. What is Embedded Insurance? Embedded insurance is a mechanism that provides insurance seamlessly integrated into the payment process when consumers purchase products or services. For example, this includes options to purchase travel insurance simultaneously when buying airline tickets online. This method simplifies the insurance application process and enables appropriate coverage to be provided at the optimal timing for consumers. Through its partnership with Chubb Japan, Smartpay is bringing innovation to the insurance industry. By providing solutions at the moment of need, we are transforming the nature of insurance. Our embedded insurance technology is seamlessly integrated into the payment process, providing appropriate coverage instantly when customers need it. Growth Outlook for the Embedded Insurance Market The global embedded insurance market size is projected to grow CAGR of 11.6% from 2024 to 2030, reaching approximately $175.25 billion (about Y=26.3 trillion) by 2030[5]. Another report predicts the embedded insurance market will grow at an annual rate of 4.8% from 2025 to 2032[6]. By region, the Asia-Pacific region is the largest market, accounting for approximately 39% of share. This is followed by Europe at 32% and North America at 21%. By product type, life insurance is the largest segment, accounting for 51% of share. By application, the automotive sector is the largest, accounting for approximately 26% of share. These data suggest that the embedded insurance market will continue to show steady growth. Fusion of Technological Innovation and Customer-Centric Design Embedded insurance goes beyond simply incorporating insurance at the point of payment, achieving comprehensive fintech innovation. It combines the following: Real-time Risk Assessment and Dynamic Pricing - A system that provides optimal coverage and pricing for each customer, often making it possible to keep insurance premiums lower Highly Secure Complex Infrastructure - Integration of Smartpay's payment system and Chubb's insurance infrastructure Seamless Customer Experience - Eliminating complicated procedures, enabling appropriate insurance enrollment at the time of purchase with intuitive and user-friendly experience. Strategic Partnership with Chubb Chubb is a global company with a track record of successful partnerships with major financial institutions worldwide. In 2018, it partnered with Grab, Southeast Asia's largest super app, to provide insurance products to millions of Grab users. Additionally, it has led digital transformation and technological innovation in the insurance industry, such as partnering with Nubank, Brazil's largest digital bank, to provide fully digitalized life insurance. In this context, Chubb's selection of Smartpay as its first embedded insurance business partner in Japan demonstrates strong confidence in our innovative approach, technological capabilities, and market potential. Smartpay to Launch First Embedded Insurance Product in Summer 2025 Smartpay and Chubb Japan plan to provide their first embedded insurance product in BNPL in partnership with Futbol Opcion, a soccer cultural exchange program provider operated by Actif LLC, in summer 2025. While soccer cultural exchange programs represent a significant investment for families, Smartpay's installment payment option makes it possible to realize children's dreams while reducing the burden on household finances. Additionally, having insurance coverage during international travel is a crucial element for parents' peace of mind. Through this partnership, families can now handle both program fee installments and insurance enrollment in one process, making soccer exchange opportunities accessible to more young people. Additionally, Smartpay announced details of this initiative at the "Global Financial Technology Network Forum" held in March 2025. About Smartpay Smartpay is a fintech company that develops and provides smart solutions to help consumers manage their daily expenses and improve their financial well-being. In addition to realizing Japan's first one-click credit card-based BNPL solution, Smartpay was the first in Japan to introduce "Smartpay Bank Direct" enabling immediate withdrawals from bank accounts[8]. Through Smartpay Bank Direct, developed in partnership with the Japan Electronic Payment Promotion Organization (JEPPO), we provide payment services accessible to 90% of the population with bank accounts, partnering with 20 major banks including megabanks and over 200 credit unions in Japan. For more information, please visit https://smartpay.co/. In addition, Smartpay is also focusing on unprecedented initiatives, such as being the first BNPL solution in Japan to establish processor agreements with both Adyen and Stripe[9], in order to pursue convenience for both businesses and consumers. About Chubb Japan Chubb Japan provides innovative property and casualty insurance products to both individuals and corporations, based on innovative thinking and Chubb Group's global network. With a history in Japan reaching its 100th anniversary in 2020, it has the longest presence among foreign property and casualty insurance companies. It has received an "AA-" rating for both insurance financial strength and issuer credit rating from U.S. rating agency Standard & Poor's (as of March 2025). About Chubb Group and Chubb Limited Chubb is a world leader in insurance. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. The company is defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb employs approximately 43,000 people worldwide. 1: Ministry of Economy, Trade and Industry Commerce and Service Group Cashless Promotion Office, "Consumer Survey Analysis Results" https://www.meti.go.jp/shingikai/mono_info_service/cashless_future/pdf/005_05_00.pdf 2: Japan Travel Insurance Market (2023-2028) https://www.researchandmarkets.com/reports/5566829/japan-travel-insurance-market-2023-2028-by 3: Research shows Japanese travelers desire embedded protection and improved claims experiences in a post-pandemic world https://covergenius.com/embedded-insurance-travel-japan/ 4: Deloitte Tohmatsu Group, "2024 Domestic Generation Z Awareness and Purchase Behavior Survey" https://www2.deloitte.com/jp/ja/pages/consumer-business/articles/cp/generationz-behavior-survey.html 5:Global Embedded Insurance Market Size, Share, and Trend Analysis Research Report 2024-2030 https://newscast.jp/news/5752394 6: Global Embedded Insurance Market Research Report 2024 https://www.reliableresearchtimes.com/embedded-insurance-r1837378 7,9: As a BNPL service in Japan that utilizes credit card's credit limit (as of November 2021) 8: As a "BNPL service that connects with Bank Pay and allows for immediate withdrawal from bank accounts in Japan" (as of December 2022) (ADVERTORIAL DISCLAIMER: The above press release has been provided by PRNewswire. 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