Smartpay, a leading Asian fintech company, and Chubb, a global insurance leader with operations in over 54 countries, have announced a strategic partnership to develop digital insurance products tailored to the needs of Japanese consumers. This collaboration marks a significant step towards modernizing the Japanese insurance industry and addressing the evolving demands of a digital-first customer base.

The Japanese insurance industry is undergoing a period of transformation driven by the changing digital landscape and post-pandemic consumer preferences. Consumers are increasingly seeking efficient and seamless digital experiences across the entire insurance journey, encompassing personalized purchasing processes, real-time support, and user-friendly online interfaces. Additionally, the demand for secure and convenient payment solutions is paramount.

The partnership between Smartpay and Chubb focuses on the development of “embedded insurance.” This innovative approach integrates insurance purchases directly into the consumer checkout process for complementary products and services. For example, a customer purchasing furniture online could be seamlessly offered an insurance policy at checkout to protect their new investment. Embedded insurance personalizes the insurance experience, allowing consumers to purchase coverage that aligns with their specific needs while promoting a frictionless buying journey.

The Japanese insurance market is poised for significant growth in the digital realm. Estimates suggest that by 2027, the market value of digital insurance purchases will reach 80 trillion yen. Notably, Japan’s travel insurance market alone is projected to reach 1.5 trillion yen by 2028, with a growing demand for alternative methods to purchase travel insurance beyond traditional channels. Embedded insurance presents a compelling solution to meet these evolving needs and drive market expansion.

Sam Pemberton-Ahmed, CEO and Founder of Smartpay, expressed his enthusiasm for the partnership, stating, “The vision we have as partners is ’embedded insurance.’ By integrating insurance into the customer journey at checkout and providing it in a personalized manner, users can purchase insurance seamlessly at a price that suits their needs.”

Chubb brings its extensive global experience and leadership in digital insurance innovation to the collaboration. Partnering with companies like Southeast Asia’s Grab and Brazil’s Nubank has enabled Chubb to deliver insurance products to millions of users through digital platforms.

Smartpay, as Japan’s sole payment provider integrated with the top 20 banks and over 200 credit unions, offers exceptional reach, encompassing nearly 90% of the Japanese population with bank accounts. Their “Smartpay Bank Direct” service empowers consumers who prefer alternative payment methods to credit cards to seamlessly complete online purchases with secure financing options.

By combining Smartpay’s domestic reach and digital payment solutions with Chubb’s expertise in insurance innovation, the partnership is well-positioned to revolutionize the Japanese insurance landscape. Embedded insurance marks the first step in this collaborative effort, paving the way for the development of a suite of innovative digital insurance products for Japanese consumers.