Affinity insurance: growth drivers

The rise of affinity insurance is based on a number of factors or trends, which are summarized below.

Changing consumer habits: Consumer expectations regarding associated services and after-sales service are changing. This is reflected in:

• a demand for simplified and reassuring solutions,
• a search for new coverage models: integrated, packaged,
• flexible contracts that are consistent with consumer needs.

Digitalization: According to Eurostat, 77% of Europeans aged 16 to 74 purchased products online in 2024, compared to 59% ten years earlier. Each digital transaction becomes an opportunity to offer an associated coverage, with a view to enhancing customer satisfaction and operational efficiency.

Technological breakthroughs: they streamline the customer journey by facilitating the integration of insurance products directly into the purchasing process. New technologies also allow for customized offerings, better guidance for customers toward appropriate solutions, and rapid processing of claims.

A source of additional revenue: affinity insurance is seen as a new source of revenue for distributors and insurers. It relies on the intensification of strategic partnerships between the various players.

Distributors use affinity products to offset declining margins on physical sales while retailers and travel platforms alike perceive them as a high-value-added source of revenue.

The need for security: faced with sophisticated products and high repair costs, consumers see these insurance policies as a new safety net.

Prospects for the development of affinity insurance

The prospects for the development of affinity insurance are encouraging. According to Swiss Re, this market could represent nearly 10% of the global non-life insurance market by 2030. This growth momentum can only be realized by adjusting the model through:

• establishing a sustainable balance between innovation and ethics,
• highlighting the real benefits of affinity products for consumers,
• strengthening its role as a vehicle for trust and inclusion, particularly in Africa where its potential remains untapped,
• the implementation of contracts that are understandable and tailored to each profile,
• transparency of costs, margins, and compensation rates,
• regulation of the activity to limit abuse and make stakeholders accountable.

Technologies serving the affinity market

Affinity insurance is poised to take a new step forward, driven by digital innovations. Artificial intelligence (AI) has become a key tool for detecting fraud and speeding up claim processing.

For McKinsey, integrating AI into the claims management process makes it possible to identify anomalies when claims are filed, reduce costs by up to 30%, and shorten compensation times.

At the same time, blockchain technology paves the way for complete contract traceability, making terms and conditions irrevocable and verifiable by all parties. In 2025, more than 15% of European insurtech companies have already started experimenting with smart contracts to automate reimbursements, according to the Capgemini Research Institute.

The rise of 100% digital platforms is also transforming customer relations: underwriting, monitoring, and management are now done via mobile applications or simplified interfaces.

In France, according to FG2A, more than 60% of affinity contracts are now managed entirely online, compared to 35% in 2019.

In Africa, digitalization is picking up. According to the GSMA's Mobile Economy 2024 report (1), smartphone penetration now stands at 53% of urban adults on the continent.

Transparency and education: the key to winning back customers

After years of criticism, the priority for affinity insurance providers is to win back consumer confidence.

Education is now a strategic issue. A survey conducted by FG2A in 2024 reveals that 67% of consumers surveyed say they would be more willing to underwrite affinity insurance if the terms and conditions and exclusions were clearly explained.

To meet these requirements, a number of initiatives are being launched:

• creation of online simulators,
• simplification of coverage visuals,
• introduction of public customer satisfaction indicators.

Some platforms even display the average reimbursement rate, an approach welcomed by consumer associations.

These transparency requirements also extend to commissions paid to distributors. According to the European Commission, these commissions still account for 30 to 50% of the contract price, a level considered high by regulators.

Affinity insurance: an opportunity for Africa

African premiums currently account for less than 2% of the global insurance market. The penetration rate stands at 2.88%, compared to 7% globally in 2024.

Africa has significant room for growth, with affinity insurance poised as a strategic asset. The continent has more than 1.2 billion mobile subscribers, nearly 500 million of whom use mobile payment services, providing a favorable channel for the distribution of embedded products.

According to the McKinsey Africa Report 2024, the African market for microinsurance and affinity products could reach 12 billion USD by 2030, representing average annual growth of 14%.

In sub-Saharan Africa, insurtech companies such as aYo, Bima, and Turaco already cover more than 20 million customers, most often through discounted, limited-term packages.

In Morocco, ACAPS encourages partnerships between telecom operators, banks, and insurers to develop simple and accessible offerings.