Smartpay partners with Chubb in Japan for embedded insurance
Smartpay, one of the fastest-growing fintech companies in Asia that provides the “Smartpay” buy-now-pay-later service, has entered into a business partnership with the Japanese entity of Chubb Group, the world’s largest publicly traded property and casualty insurance group, for the development and provision of digital insurance products.
In the post-COVID era, Japan’s insurance industry is expected to innovate to cater to the rise of digital-native consumers.
- Efficient and smooth digitalization, personalized insurance purchase processes, and real-time support.
- Providing an easy payment experience while implementing robust, digital-first security measures and protecting consumer data.
- Addressing the additional 8 trillion yen market expected by 2027.
The reason Smartpay and Chubb are forming this partnership is because they share a vision for “embedded insurance,” which is key to achieving these goals.
Embedded insurance allows consumers to purchase complementary insurance products when buying items like furniture or travel packages. By integrating insurance into the product purchase journey in a personalized way, users can seamlessly obtain appropriate coverage without hassle at the right price.
Japan’s travel insurance market was estimated at $678 million in 2023 and is projected to reach $1.523 billion by 2028, growing at 17.55% annually. 47% of Japanese travelers who purchased travel insurance post-pandemic sought new ways to buy it, suggesting embedded insurance could spearhead new insurance purchasing methods and drive growth in Japan’s expanding insurance market.
In December 2022, Smartpay introduced Japan’s first bank account direct debit for buy-now-pay-later, “Smartpay Instant Account Debit (Bank Direct).” This provides a convenient digital payment method for the 70% of Japanese shoppers who prefer not using credit cards.
Through its bank direct solution developed in partnership with the Japanese Electronic Payment Promotion Organization (JEPPO), Smartpay is the only company offering payment services accessible to 90% of Japan’s bank account holders by partnering with 20 major banks, including megabanks, and 200 credit unions.
Smartpay implements robust security measures like user authentication, multi-factor authentication, biometrics, and data encryption. It was also an early adopter of 3D Secure ahead of government mandates, prioritizing security for consumers and merchants.
Meanwhile, Chubb partnered with Southeast Asia’s super app Grab in 2018 to offer its insurance products to millions of Grab users. It also collaborated with Brazil’s Nubank to provide fully digital life insurance, expanding financial services access. This track record makes Chubb a leader in digital transformation and innovation in insurance.
Combining Smartpay’s domestic firsts like bank direct debit with Chubb’s extensive insurance innovation expertise, the companies will provide cutting-edge digital insurance solutions in Japan, spearheading embedded insurance adoption.
As one of Asia’s fastest-growing fintechs, Smartpay’s partnership with Chubb Insurance aims to advance digital insurance in Japan, delivering greater value to consumers, merchants, government, and financial institutions.
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