The news: Chubb has introduced AI-driven analytics and product matching features within its Chubb Studio platform, which lets partners embed Chubb insurance in their digital experiences. It’s another move that reinforces the incumbent insurer’s position as a key player in the space.

Here’s how it works: Chubb’s system processes user interaction data in real time to recommend relevant products and suggest ways to communicate with agents. Distribution partners can choose from fully Chubb-managed integrations, self-managed options, or a hybrid approach.

Zoom out: Embedded insurance, the integration of insurance products directly into the purchase flow of non-insurance products and services, is transforming the insurance landscape. While the embedded channel has traditionally represented a small share of the market, it has been forecast to grow to nearly a third of insurance transactions by 2027. Growth is partly driven by younger consumers’ high expectations for digital shopping experiences and the increasing number of partners willing to embed insurance into their customer journeys.

But most insurers are poorly equipped to pursue the opportunity—or any opportunity that requires modernization. AI adoption by P&C insurers, for example, is slowed by fragmented, siloed data and legacy technology platforms, as well as governance and compliance constraints. By contrast, insurtechs built on modern technology stacks, like Root, have led innovation in embedded insurance.

Our take: Traditional sales channels will inevitably decline as Gen Zers and young millennials become a larger share of insurance buyers.

The agent model—captive or independent—will lose ground to no-agent embedded distribution. Insurers need to rethink their distribution strategy and technology infrastructure or risk losing access to digitally native customers who expect seamless, integrated purchasing experiences.