Understand incorporated insurance mobility services
The accelerated digitalization of services has transformed not only the way we move around cities, but also how we purchase insurance. One concept that has been gaining traction in this scenario is Embedded Insurance, especially applied to Mobility Services.
But what does this mean in practice and how does it work? In this content, we will explain more details about the subject. Follow the content until the end and find out!
What is Embedded Insurance?
Embedded Insurance is a distribution model that integrates insurance coverage directly into the purchase journey of another product or service.
In other words, the insurance is offered at the exact moment the user is acquiring or using something, such as a ride-hailing app or a car or e-scooter rental.
Instead of seeking out an insurer separately, the consumer is automatically presented with the insurance offer during the process.
This integration usually occurs through APIs (application programming interfaces), which connect digital platforms to insurance providers.
How does this apply to Mobility?
In the mobility sector, Embedded Insurance is already present in various everyday solutions. Imagine you use an app to rent an electric scooter for a few minutes.
As soon as you begin the ride, you’re automatically covered by accident insurance. Or when reserving a car through an app, collision or damage insurance is already included in the final price, no extra steps needed.
Embedded Insurance in mobility covers different modes of transportation, such as:
- Car sharing services;
- Ride hailing apps;
- Electric bikes and scooters;
- Vehicle subscription rentals;
- Shuttles and on demand transport services.
This approach enhances the user experience, reduces friction in contracting insurance, and ensures immediate protection during service use.
How does it work in practice?
1. Technology integration
It all begins with the integration between the mobility service and an insurer or insurtech. This is done through APIs that allow insurance offers and issuance in real time, based on the user and service data.
2. Automatic offer
When the client accesses the mobility app and selects a service, they receive a notification or see clearly that insurance is already included (or available as an add-on) for that specific transaction.
3. One click contracting
If the insurance is included, it is automatically activated with the start of the ride or rental. If it’s optional, the user can accept the coverage with one click, without leaving the app.
4. Personalized coverage
The coverage is adapted to the context: it may include material damage, bodily injury, theft, third-party accidents, among others. Often, the insurance is on demand, valid only during the use of the service.
5. Digital claims management
In the event of a claim, the app itself may guide the user through the claim process, document upload, and online tracking, no bureaucracy involved.
What are the benefits of this model?
Users don’t need to search, compare, or contract insurance separately. More people can access insurance, since the cost is diluted in the service price and adoption is easy.
Coverage takes effect the moment the service is used, protecting the customer from the start. Mobility companies provide added value and trust, improving user retention.
Digitizing the process reduces costs and risks for service providers and insurers.
Future trends
Embedded Insurance in mobility is part of a broader movement to integrate technology, insurance, and user experience.
With the growth of the sharing economy, autonomous vehicles, and smart urban solutions, insurance will become more proactive and invisible, working seamlessly in the background.
Moreover, the use of data (such as geolocation, driver behavior, and usage time) will enable even more personalized and dynamic offers. Per minute, per-kilometer, or user-profile-based insurance is already becoming a reality.
Conclusion
Embedded Insurance in mobility services represents a major shift in how we perceive protection: more integrated, smarter, and more accessible.
For users, it means security without red tape. For companies, an opportunity to add value. And for the insurance market, a promising path toward digital innovation.
As urban mobility continues to evolve, insurance is expected to keep pace, embedded, connected, and centered on user experience.