https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3AAdd-on_insurance 2026-06-14T16:09:52Z Revision history for this page on the wiki MediaWiki 1.43.8 https://www.insurerbrain.com/w/index.php?title=Definition:Add-on_insurance&diff=10303&oldid=prev 2026-03-11T16:26:51Z

<p>Bot: Creating new article from JSON</p> <p><b>New page</b></p><div>🛒 &#039;&#039;&#039;Add-on insurance&#039;&#039;&#039; is a supplementary [[Definition:Insurance policy | insurance policy]] sold alongside a primary product or service, typically at the point of sale. Common examples include extended warranty coverage offered with electronics purchases, travel insurance bundled with airline tickets, or [[Definition:Guaranteed asset protection (GAP) insurance | GAP insurance]] attached to an auto loan. Unlike standalone policies that a consumer actively seeks out, add-on insurance is embedded into a transaction, often presented as an optional extra during checkout — a distribution model that has become central to the [[Definition:Embedded insurance | embedded insurance]] movement in [[Definition:Insurtech | insurtech]].<br /> <br /> ⚙️ The mechanics rely on a partnership between an [[Definition:Insurance carrier | insurance carrier]] (or [[Definition:Managing general agent (MGA) | MGA]]) and a non-insurance retailer, lender, or platform that acts as the distribution channel. The retailer typically operates under a [[Definition:Delegated underwriting authority (DUA) | delegated authority]] or referral arrangement and earns a [[Definition:Commission | commission]] for each policy sold. Because the product is presented during an existing purchase flow, [[Definition:Conversion rate | conversion rates]] can be high, but regulators have scrutinized add-on insurance for potential [[Definition:Mis-selling | mis-selling]] — particularly when customers feel pressured, do not understand the coverage, or when the product offers poor [[Definition:Value measure | value]] relative to [[Definition:Premium | premiums]] charged.<br /> <br /> 📊 Regulatory attention has reshaped how add-on insurance is offered across many markets. In the United States and the United Kingdom, [[Definition:Consumer protection | consumer protection]] rules now require clearer disclosure of price, coverage limits, and the right to cancel. For insurers and [[Definition:Insurtech | insurtechs]], add-on insurance remains a powerful growth lever — it lowers [[Definition:Customer acquisition cost (CAC) | customer acquisition costs]] and reaches consumers who might never purchase a standalone policy. The challenge lies in designing products that genuinely benefit the policyholder while maintaining compliance with evolving [[Definition:Insurance regulation | regulatory standards]].<br /> <br /> &#039;&#039;&#039;Related concepts:&#039;&#039;&#039;<br /> {{Div col|colwidth=20em}}<br /> * [[Definition:Embedded insurance]]<br /> * [[Definition:Affinity marketing]]<br /> * [[Definition:Mis-selling]]<br /> * [[Definition:Guaranteed asset protection (GAP) insurance]]<br /> * [[Definition:Ancillary insurance product]]<br /> * [[Definition:Point-of-sale insurance]]<br /> {{Div col end}}</div>

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