Interest in insurance digital offerings is growing significantly, especially by banks and fintechs, with the majority expecting digital products to comprise 10 percent or more of revenue within three years, a new survey released by Chubb found.

More than half of consumers globally are interested in purchasing more insurance, the survey found, and 46 percent believe that digital is the best way to purchase it.

Financial firms in emerging markets in Latin America and Asia lead the way, while those in North America are working to catch up.

The global survey, “Banks and the Digital Wallet Race—The Embedded Insurance Strategy,” found that a majority (56 percent) of financial executives involved in insurance decision-making globally expect to generate more than 10 percent of their revenue from embedded insurance within three years.

Currently, just one in five firms reports that level of revenue, Chubb found.

Of the 2,000 consumers and 200 finance leaders surveyed, 81 percent consider website and app embedded digital insurance a must-have rather than a nice-to-have offering, setting the stage for accelerating adoption of insurance products in financial services platforms.

“The race to win a greater share of consumer digital wallets is intensifying—banks and fintechs are advancing with expanded offerings of insurance products to deepen customer relationships, drive growth and narrow the protection gaps of their customers,” said Sean Ringsted, Chubb’s chief digital business officer.

“Digitized insurance is already widely popular with global consumers, and financial service providers are building trust and loyalty while unlocking new avenues for growth by offering customers simple, relevant and affordable insurance protection options embedded in their digital customer journey,” he added.

Responding to increasing risk exposure, consumers’ demand for insurance is growing.

Of those surveyed, 56 percent believe they are underinsured.

The figures are more pronounced in certain markets, the survey found, with 62 percent of consumers in Latin America and 60 percent in Asia expressing interest in purchasing more insurance that not only protects their material possessions but also their lifestyle.

Established banks and insurers can leverage the trend, especially in developed markets, according to Chubb.

Nearly 60 percent of survey respondents expressed high levels of trust purchasing insurance from established banks, and 58 percent indicated the same for established insurers.

This compares with 45 percent expressing high levels of trust in insurance purchases with digital-only insurers and 31 percent with digital-only banks.

The survey found that 55 percent of financial executives agree that established insurers have an edge over digitally native InsurTechs because they have gained consumers’ trust.

“Markets in Asia and Latin America already demonstrate the massive growth opportunity for banks and fintechs with embedded insurance,” said Gabriel Lazaro, head of Digital, Chubb Overseas General Insurance.

“Consumers view legacy banks and insurers as the benchmark in this space, and as a result, we have seen our network of digital distribution partners around the world continue to scale,” he added.

North America is set to see similar growth take off, said Amy McNeece, senior vice president, Digital Consumer Partnerships for Chubb in North America.

“The survey confirmed what we’ve been hearing from our partner companies: Relevant insurance offers embedded as part of their customers’ digital transactions—offering the right protection at just the right time—is helping to improve customer loyalty and brand stickiness,” McNeece said.

Respondents represented all age groups, levels of education and professional status. Consumers were evenly split among four regions: North America (500), Latin America (500), Asia Pacific (500) and Europe (500).

Financial executives represented established banking organizations (52 percent) and fintechs (48 percent). They were also evenly split among four regions: North America (50), Latin America (50), Asia Pacific (50) and Europe (50). The majority of fintechs (84 percent) had revenues of $10 million to $500 million; the majority of established banking organizations (89 percent) had AUM (assets under management) of at least $1 billion. All executives are engaged in decision-making about insurance products, such as embedded insurance.

For both consumers and financial executives, the regions included the following countries: North America: U.S. and Canada; Latin America: Brazil, Mexico and Chile; Asia Pacific: South Korea, Singapore, Thailand, The Philippines and Vietnam; Europe: United Kingdom, France and Spain.