TOKYO, March 6, 2024 /PRNewswire/ — The partnership between Smartpay, one of Asia’s fastest growing fintechs and Chubb, a world leader in insurance with operations in 54 countries and territories, has been established for the development of digital insurance products for Japanese consumers needs.
The need for service innovation in the Japanese insurance industry
In the Japanese insurance industry, innovation is expected to respond to the changes in the digital economy requirements from consumers post-COVID.
Demand for more efficient and smoother digital user experience with personalized insurance purchase processes and real-time support
Easy payment processes with digital-first security measures and strong consumer data protection.
The insurance market will be primarily made up of digital purchases, adding 80 trillion yen by 2027.
Why Smartpay and Chubb are partnering:
Sam Pemberton-Ahmed, CEO and Founder of Smartpay, says “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.”
Japan’s Travel Insurance Market is estimated to be USD 678.89 Mn in 2023 and is expected to reach USD 1523.76 Mn by 2028, growing at a CAGR of 17.55%. 47% of Japanese travelers who have purchased travel insurance since the pandemic are seeking a new way to buy travel insurance different from the traditional methods. Embedded insurance is expected to lead the way in new practices to buy insurance and drive the growth of the expanding Japanese insurance market.
Making ‘Embedded Insurance’ that Drives Insurance Market Growth More Accessible with Smartpay and Chubb.
Sam Pemberton-Ahmed says, “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 first and only 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.
Smartpay is the only payment company in Japan that has signed and integrated with the 20 largest banks in Japan and over 200 credit unions thus accessible to 90% of Japan’s population with bank accounts. Smartpay Bank Direct was developed with the Japan Electronic Payments Promotion Organization (JEPPO).
Addressing security concerns, Smartpay uses industry best practices, including user verification, two-factor authentication, biometric security, data encryption, and 3DS. Prioritizing 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 leading digitalization and technological innovation with partnerships in the insurance industry. An example is their partnership with the Southeast Asia-based super app Grab, which started in 2018. This collaboration allowed Chubb to provide insurance products to millions of Grab users. Additionally, Chubb teamed up with Brazil’s Nubank to offer fully digitalized life insurance. This partnership enabled local customers to access a wide range of financial services.
By combining Smartpay’s achievements of various domestic initiatives, such as Smartpay Bank Direct and Chubb’s innovation in the insurance field, the two companies will provide innovative digital insurance solutions in the future, starting with embedded insurance in Japan.
Smartpay Corporation, which provides the digital financing service “Smartpay” (Headquarters: Minato-ku, Tokyo, Managing Director and Chief Revenue Officer: Naoya Otsubo, hereinafter referred to as “our company”), has entered into a business partnership with Chubb Insurance, a Japanese subsidiary of the world leader in insurance, Chubb Group (hereinafter referred to as “Chubb”), for the development and provision of digital insurance products.
About Smartpay
Smartpay is introducing several first-to-market features in Japan for both consumers and merchants. For consumers, Smartpay is the first in Japan to offer no interest, no late fees, and free of charge services. It provides the only checkout process with credit card or direct from bank account that takes less than 10 seconds and with a hassle-free fully automated installment experience. Additionally, there is no need for consumers to visit a convenient store for installment payments or have cash ready for delivery, and there is no information sharing anxiety for consumers with merchants they don’t know. The service offers three installments over an eight-week period.
For Japanese merchants, Smartpay takes all the fraud risk, which is critical as we transition to digital payments. It manages all fraud chargebacks, saving money, time, and resources for merchants. Smartpay’s integration process is fast, requiring only a day with its highest quality SDKs and APIs compared to the industry norm of two weeks. Apple Pay and Google Pay are automatically integrated into the Smartpay solution, saving merchants from costly integration resources. Additionally, Smartpay offers free e-commerce training for 10,000 Japanese merchants to learn e-commerce best practices in increasing website conversions, attracting new customers, and increasing the average order value for businesses. For more details, please visit https://smartpay.co/.
About Chubb Insurance Japan
Chubb Insurance Japan provides property and casualty, accident and health, automobile, travel and other types of insurance to both individuals and businesses. Chubb Insurance Japan has over 100 years of experience in the Japanese market, through its predecessor companies, the longest among all foreign insurers in Japan.
Chubb Insurance Japan is rated AA- by Standard & Poor’s (as of March. 2024).
About Chubb Group and Chubb Limited
Chubb is a world leader in insurance. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and promptly. We combine the precision of craftsmanship with decades of experience to conceive, craft and deliver the very best insurance coverage and service to individuals and families, and businesses of all sizes.
Chubb is also defined by its extensive product and service offerings, broad distribution capabilities, direct-to-consumer platform partnerships, exceptional financial strength and local operations globally. The company serves multinational corporations, mid-size companies and small businesses with property and casualty insurance and risk engineering services; affluent and high net worth individuals with substantial assets to protect; individuals purchasing life, personal accident, supplemental health, homeowners, automobile and specialty personal insurance coverage; companies and affinity groups providing or offering accident and health insurance programs and life insurance to their employees or members; and insurers managing exposures with reinsurance coverage.
Chubb has $228.8 billion in assets and reported $57.5 billion of gross premiums written in 2023. Chubb’s core operating insurance companies maintain financial strength ratings of AA from Standard & Poor’s and A++ from A.M. Best.(As of March 2024)
Chubb Limited, the parent company of Chubb, is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index.
Chubb maintains executive offices in Zurich, New York, London, Paris and other locations, and employs approximately 40,000 people worldwide.
1:https://covergenius.com/embedded-insurance-travel-japan/
2:https://www.gfmreview.com/press-release/smartpay-japan-wins-the-fastest-growing-fintech-asia-2023-award-by-global-financial-market-review
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SOURCE Smartpay K.K.
