The Power of Embedded Insurance

THE EMBEDDED INSURANCE REPORT: SAUDI ARABIA

How Banks and Digital Channels Can Lead Embedded Protection in the Kingdom

Executive Summary

Saudi consumers are demonstrating increasing interest in embedded insurance—protection products offered seamlessly at the point of need, especially through banks, payment apps, and e-commerce channels. Yasmina’s insights show that the appetite for convenient, contextual insurance offerings is growing, echoing global trends seen in markets like Korea and Singapore.

This report reveals key consumer behaviors, preferred channels, and opportunity areas for financial institutions and tech players in Saudi Arabia to lead in embedded insurance.

Key Insights

MetricSaudi ArabiaKorea (Reference)% of consumers open to buying insurance from their bank73%69%% prefer warranties offered directly at checkout81%78%% value convenience over price in protection offerings65%66%% interested in cancel-for-any-reason protection58%54%% who trust digital platforms for insurance61%59%

What Saudi Consumers Want

1. Ease at Checkout

Most Saudi users want to buy extended warranties, refund protection, and device insurance directly at checkout, whether shopping online or in-store.

Top categories for embedded protection:

• Electronics & smartphones
• Flight and hotel bookings
• Event tickets
• Appliances

2. Trust in Banks & Digital Channels

Traditional insurance companies rank lower than banks, telecom providers, and digital wallets in consumer trust for offering protection.

Trusted providers (ranked):

1. Local Banks (e.g., Al Rajhi, SNB)
2. E-commerce apps (e.g., Noon, Amazon.sa)
3. Payment Apps (e.g., STC Pay, Apple Pay)
4. Telcos (e.g., STC, Zain)

3. Post-Purchase Protection is Gaining

Beyond point-of-sale, consumers are showing interest in adding protection post-purchase, especially within 48 hours of buying.

Market Opportunities

🔹 Banks

• Bundle life, travel, and device insurance with credit products.
• Offer opt-in protection through mobile banking apps.

🔹 E-Commerce & Delivery Platforms

• Embed warranty upsells and damage protection at checkout.
• Allow post-checkout protection via confirmation email or app.

🔹 Travel & Events

• Offer “cancel for any reason” or trip interruption coverage directly on booking platforms.

Chart: Willingness to Buy Protection by Channel

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| Channel        | Very Willing | Somewhat Willing | Not Willing |
|----------------|--------------|------------------|-------------|
| Banks          | 48%          | 25%              | 27%         |
| E-Commerce     | 52%          | 31%              | 17%         |
| Payment Apps   | 43%          | 33%              | 24%         |
| Telcos         | 39%          | 29%              | 32%         |


Conclusion

Embedded insurance in Saudi Arabia is ready to scale. Consumers are signaling clear preferences for:

• Convenience
• Digital-first delivery
• Trusted channel integration

Yasmina can play a pivotal role in enabling banks and digital brands to launch tailored embedded protection products that meet local expectations and behaviors.

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