Smartpay & Chubb Insurance to offer digital insurance in Japan

By Gloria Mathias

Japanese FinTech Smartpay and Chubb, an insurance provider established for the development of digital insurance products for Japanese consumer’s needs, have partnered to accelerate digitisation of the Japanese insurance industry.

The insurance market will be primarily made up of digital purchases, anticipated to surge to 80 trillion yen ($500 billion) by 2027. This partnership aims to make ‘Embedded Insurance‘ that drives insurance market growth more accessible with Smartpay and Chubb.

Sam Pemberton-Ahmed, CEO and Founder of Smartpay, said, “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 personalized manner, users can purchase insurance seamlessly at a price that suits their needs.”

Sam Pemberton-Ahmed said, “We are honored 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 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 purchase in Japan) a digital payment method that aligns to their needs and provides convenient digital financing and installments.

Addressing security concerns, Smartpay uses industry 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 digitalization and technological innovation, with partnerships in the insurance industry.

By combining Smartpay’s achievements from various domestic initiatives, such as Smartpay Bank Direct and Chubb’s contribution in the insurance field, the two companies will provide digital insurance solutions in the future, starting with embedded insurance in Japan.