Smartpay Corporation, a provider of Buy Now Pay Later (BNPL) services, has partnered with Chubb Insurance Japan to launch embedded insurance products across the nation.
The partnership aims to bring innovation to the Japanese insurance sector by integrating insurance products directly into digital payment processes, according to FF News.
By embedding insurance into transactions, the collaboration seeks to address inefficiencies in traditional insurance contracting, which remains largely paper-based and analog.
Smartpay is known for its BNPL service, offering consumers flexible payment solutions to enhance purchasing power.
The company focuses on digital finance and seamless transactions, catering to modern consumer demands. Meanwhile, Chubb Japan, as part of the globally recognised Chubb Group, specialises in diverse insurance offerings, including personal, commercial, and specialty insurance. The company has a track record of leveraging technology to enhance the accessibility and efficiency of insurance products.
The integration of embedded insurance comes as Japan’s cashless payment adoption grows, with the Ministry of Economy, Trade and Industry reporting that approximately 50% of consumer spending is now cashless.
Additionally, demand for digitalised insurance solutions is rising, particularly among Generation Z consumers who prioritise convenience and simplicity. The embedded insurance market is projected to expand significantly, with forecasts estimating global market growth at a CAGR of 11.6% from 2024 to 2030, reaching $175.25bn by 2030.
Chubb has successfully partnered with financial institutions worldwide, including Grab in Southeast Asia and Nubank in Brazil, to provide digital insurance solutions. The collaboration with Smartpay marks Chubb’s first embedded insurance initiative in Japan, highlighting confidence in Smartpay’s technological capabilities and market potential.
As part of the initiative, Smartpay and Chubb Japan plan to launch their first embedded insurance product in summer 2025. This will be introduced in partnership with Fútbol Opción, a soccer cultural exchange programme provider operated by Actif LLC. The programme allows families to finance soccer exchange opportunities while integrating insurance coverage for international travel, ensuring a seamless and secure payment and insurance process.
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