The partnership between Smartpay, one of Asia’s fastest-growing fintech and Chubb, a world leader in insurance with operations in 54 countries and territories, has been established for the development of digital insurance products for Japanese consumers’ needs.
The need for service innovation in the Japanese insurance industry
In the Japanese insurance industry, innovation is expected to respond to the changes in the digital economy requirements from consumers post-COVID.
- Demand for more efficient and smoother digital user experience with personalised insurance purchase processes and real-time support.
- Easy payment processes with digital-first security measures and strong consumer data protection.
- The insurance market will be primarily made up of digital purchases, adding 80 trillion yen by 2027.
Why Smartpay and Chubb are partnering:
Sam Pemberton-Ahmed, CEO and Founder of Smartpay, says “The vision we have as partners is ’embedded insurance’. Embedded insurance allows consumers to purchase insurance that complements the products they are purchasing, such as furniture and travel packages, at the point of checkout.
“By integrating insurance into the customer journey at checkout and providing it in a personalised manner, users can purchase insurance seamlessly at a price that suits their needs,” he said.
Japan’s Travel Insurance Market is estimated to be US$678.89 Mn in 2023 and is expected to reach US$1523.76 Mn by 2028, growing at a CAGR of 17.55%. 47% of Japanese travellers who have purchased travel insurance since the pandemic are seeking a new way to buy travel insurance different from the traditional methods.
Embedded insurance is expected to lead the way in new practices to buy insurance and drive the growth of the expanding Japanese insurance market.
Making ‘Embedded Insurance’ that Drives Insurance Market Growth More Accessible with Smartpay and Chubb.
Sam Pemberton-Ahmed says, “We are honoured to collaborate with Chubb’s world-leading team and insurance products to integrate with our Japanese leading payment and digital finance solutions.”
In December 2022, Smartpay launched “Smartpay Bank Direct”, Japan’s first and only digital financing service that allows customers to pay for online purchases straight from their bank accounts.
This service has given Japanese consumers who prefer not to pay by credit card (which is 70% of purchases in Japan), a digital payment method that aligns with their needs and provides convenient digital financing and instalments.
Smartpay is the only payment company in Japan that has signed and integrated with the 20 largest banks in Japan and over 200 credit unions thus accessible to 90% of Japan’s population with bank accounts.
Smartpay Bank Direct was developed with the Japan Electronic Payments Promotion Organization (JEPPO).
Addressing security concerns, Smartpay uses industry best practices, including user verification, two-factor authentication, biometric security, data encryption, and 3DS.
Prioritising security, Smartpay introduced 3D Secure ahead of the mandatory introduction by Japan’s Ministry of Economy, Trade, and Industry.
Chubb has a strong track record in leading digitalization and technological innovation with partnerships in the insurance industry.
An example is their partnership with the Southeast Asia-based super app Grab, which started in 2018.
This collaboration allowed Chubb to provide insurance products to millions of Grab users.
Additionally, Chubb teamed up with Brazil’s Nubank to offer fully digitalized life insurance. This partnership enabled local customers to access a wide range of financial services.
By combining Smartpay’s achievements of various domestic initiatives, such as Smartpay Bank Direct and Chubb’s innovation in the insurance field, the two companies will provide innovative digital insurance solutions in the future, starting with embedded insurance in Japan.
