Kathmandu. TikTok has expanded its role in insurance distribution by partnering with Ergo Next Insurance.
According to GlobalData, the partnership will allow TikTok Shop merchants to purchase business insurance products including general liability, business liability, workforce and cyber insurance through TikTok’s merchant onboarding and businessnet management platforms. Embedded insurance is expected to become a key distribution channel in the coming years, as more digital platforms offer insurance products as their services.
According to GlobalData’s 2025 SME Survey, 39.1% of small and medium-sized enterprises (SMEs) offer commercial insurance when purchasing products or services through marketplace platforms. Of the embedded insurance offered, 48.8% have purchased coverage.
According to Beatriz Benitolhe, Chief Insurance Analyst at GlobalData, embedded insurance enables insurance companies to reach customers at the point of sale. This includes businesses that do not have insurance cover. “The convenience of buying insurance over other products or services contributes to higher conversion rates,” she said. ’
The new offering streamlines the insurance purchase process for e-commerce businesses by using information already available on merchants’ ticketing profiles. Reduces the need for lengthy application forms and questionnaires.
According to GlobalData, embedded systems can also reduce distribution costs by reducing marketing and spending. This potentially leads to more competitive pricing.
The model can also help address low disease among SMEs by increasing awareness and access to business coverage. According to Benitolhe, the partnership reflects a broader shift towards embedded commercial insurance.
Embedded insurance, however, has traditionally focused on individual lines. Despite the decline in commercial insurance products, future growth is expected to come from commercial lines in an increasingly aggressive manner.
Some businesses may be reluctant to purchase insurance through marketplace platforms due to concerns about claims handling. While others may still prefer personal advice before purchasing a cover.
“The next phase of embedded insurance innovation is likely to focus on small businesses with simple insurance needs, but it is expected to take a long time to adopt in larger and more complex organizations,” Benitolhe said. —Agency
