Some interesting findings from Cover Genius;
Cover Genius, the global infrastructure for embedded protection, today released The 2026 Cover Genius Embedded Protection Market Research Report finding that demand for embedded protection is outpacing how often it is actually offered.
The global study of nearly 1,400 consumers shows that demand for embedded protection is high: 87% weigh what could go wrong when they book travel or make a major purchase, and 75% say they would buy more protection if payouts were automatic, the single strongest driver in the study. However, only 30% of online shoppers surveyed were offered protection at checkout, even though 79% say they were satisfied the last time they bought it. This gap signifies a high, currently unmet, demand for protection. Credit card coverage is often the fallback when protection isn’t offered directly, yet 43% of consumers don’t fully understand what’s already bundled into their cards, and another 28% know they have coverage, but have never used a benefit.
“Consumer appetite for protection continues to increase, but it often isn’t showing up at the moment it’s most needed,” said Angus McDonald, CEO and Co-Founder of Cover Genius. “Every checkout without protection and every booking without coverage is a missed moment for both sides. The customer is exposed, and the business leaves revenue on the table. When protection is automatic and built into the transaction itself, that gap closes for everyone.”
Key findings by sector:
- Travel: 76% of travelers say they would switch to travel platforms if insurance were included as a default loyalty benefit. With consumer opposition to bundled coverage sitting at just 3%, travel platforms that embed protection by default have a clear opening to capture that loyalty.
- Banking & Fintech: 40% of consumers surveyed trust their banks to provide protection, higher than any other industry in the survey, yet 16% don’t even realize their bank offers protection products in the first place. That’s a straightforward awareness gap banks are well-positioned to close. Informed cardholders reported a willingness to pay a 25% premium for cards with built-in protection offerings, a real revenue upside for the financial services industry.
- Retail & eCommerce: While 69% of online shoppers rate delivery protection as essential, only 30% have ever been offered protection at checkout, a gap most retailers have room to close. Automation is the key to conversion: 81% of global respondents say they are more likely to purchase shipping protection if lost or delayed packages trigger instant automatic refunds without being required to file a manual claim.
- AI & Consumer Readiness: All demographics surveyed were fairly open to AI-driven purchasing tools at 78%, but younger generations were more prone to use it. Gen Z led at (89%) followed by Millennials (87%), Gen X (74%) and Boomers at only 52%. 22% of consumers surveyed reject AI purchasing tools entirely, pointing to the need for hybrid service options.
“Automation is the single largest lever for growth in embedded protection,” said McDonald. “Our platform delivers personalized, contextual protection, with claims resolved quickly and approved funds available instantly. When you remove the burden of filing a claim from the customer, protection transforms from a reluctant add-on into a standout benefit.”
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