In a context where retail margins are shrinking and customer loyalty is becoming crucial, in-store insurance sales appear to be an under-exploited growth driver. Offering breakdown cover, an Extended warranty theft insurance at the time of purchase creates value for both parties: the customer is protected, and the store develops a new revenue stream.
Potential that remains largely untapped
The majority of these sales still go through traditional channels—agents, brokers, or banks. In-store sales (or "embedded insurance") remain marginal, but their growth is spectacular: the segment is expected to reach more than $3 billion in Europe by the end of 2025, with an annual growth rate of over 35% according to Mordor Intelligence.
In other words, there is huge potential for retailers that seamlessly integrate insurance into their shopping experience.
Why selling insurance in stores appeals to retailers
Physical stores still have one advantage: human presence. When faced with a salesperson, customers can ask questions, get advice, and receive assistance in making their decision. This direct contact creates a moment of trust—ideal for discussing additional protection.
For the brand, there are two reasons for this:
- generate additional income on each sale; often recurring thanks to subscription mechanisms.
- enhance customer satisfaction: customers leave feeling secure, which promotes loyalty.
Some electronics and sports retailers have understood this well: insurance is becoming an integral part of the product experience, not an imposed extra. For example, an Extended warranty a premium smartphone or breakage/theft insurance for an electric bike anticipates a barrier to purchase at the right time.
Real obstacles to overcome
Despite its potential, selling insurance in stores does not always "take off." The reasons are often the same:
- Salespeople who are poorly trained or unfamiliar with the subject matter;
- Offers perceived as vague or useless;
- Purchasing processes that are too fast to include an explanation;
- A lack of transparency regarding terms and pricing.
According to the Federation of Insurance Europe, nearly 80% of European policyholders continue to take out their policies through a human intermediary, proving that trust and clarity remain decisive factors.
The challenge for retailers is therefore not to "force the issue," but to provide real value in simple language at the right moment in the customer journey.
The keys to success at the point of sale
1. Align the product and the moment of purchase
Effectiveness depends on relevance: theft insurance for a phone, breakage coverage for a household appliance, or long-term "peace of mind" protection for a bicycle. When insurance is perceived as a logical extension of the product, the uptake rate can exceed 25% of sales, according to studies conducted by Swiss Re on embedded insurance programs.
2. Train the teams
A well-trained salesperson who can explain insurance in a few clear sentences will make all the difference. The European Insurance Distribution Directive (IDD) requires clear and transparent information: companies must ensure that their teams understand what they are offering .
At Neat, we go one step further and offer personalized training and access to our Neat Academy to help salespeople present insurance.
3. Streamline the process
Offer a simple option to add at checkout or on a mobile terminal; avoid duplicate signatures and complicated procedures. A good customer journey is invisible: it accompanies the customer without interrupting them.
4. Measure and adjust
Track attachment rates, average basket size, conversion rates, and customer satisfaction. Some retailers have found that adding a well-integrated insurance product can lead to a 75% increase in revenue.
Towards a new era of integrated insurance
The development ofembedded insurance is disrupting distribution models. customers longer want to seek out insurance; they want it to be available when it makes sense.
And while digital technology is becoming increasingly important (the Boston Consulting Group notes that only 10% of Europeans now purchase insurance entirely online), stores continue to play a unique role in providing advice, human contact, and trust.
In the coming years, brands that are able to combine this human connection with seamless digital tools—electronic signatures, instant payment, simplified management—will come out on top.
If you too would like to quickly and easily add insurance to your purchasing process, contact Neat!
