Why Embedded Insurance is Having a Moment

Abstract: The panel on embedded insurance, moderated by Jil Macdonald, explored how financial institutions, telcos, and collections companies are responding to rising economic anxiety among Canadians with innovative protection products. Panelists Daniel Shain (FIG), Mike Titkov (Telus Global Ventures), and Hanif Joshaghani (Symend) discussed how credit insurance, income loss protection, and bill payment coverage are becoming essential tools for mitigating delinquency risk and building customer loyalty. They emphasized the importance of seamless digital integration, data-driven personalization, and behavioral science in delivering these products effectively. As consumers face heightened uncertainty, the panel highlighted a growing demand for embedded protection solutions that offer both financial resilience and improved brand engagement.

Jil Macdonald: I’ll just share some data before we lean into a panel to talk about what’s different in insurance.

As many of you know, in today’s financial environment, nine out of ten Canadians are worried about a recession. About 80% are anxious about their financial situation. A third of the banks represented here today are preparing for a downturn. We’re also seeing some of the lowest consumer confidence indices on record. Households are expecting fewer job opportunities in the next six months and are anticipating challenges in changing roles during that time.

We’re beginning to see that the probability of default is very high—possibly the highest on record. Borrowers are increasingly looking for protection as they take on debt and explore how they can safeguard themselves moving forward. On a human level, half of Canadians say they are just $200 away from insolvency, and 42% fear losing their jobs within 12 months. Google search interest in job loss insurance is at an all-time high since the pandemic. Whether it’s utilities or telcos, borrowers are organically seeking safety nets.

This is something we haven’t seen since the pandemic—and not at this scale. As we think about borrower protection, it’s important to consider innovative solutions around creditor or debt protection products. Globally, we’re seeing embedded debt protection from HELOC lenders, utility companies, and telcos. New products like income loss protection and bill payment protection are starting to emerge—non-traditional offerings that are gaining traction.

In today’s panel, we’re going to explore the evolution of creditor products in the Canadian landscape and how non-traditional financial institutions are now offering these protections—not just to manage delinquency, but to protect borrowers and reduce risk across portfolios.

Jil Macdonald: Thanks for joining me, Daniel, Mike, and Hanif. Today, we’re talking about embedded insurance. Daniel, let’s start with FIG. What does insurance mean inside your business? Is it something you’re looking at? Focusing on? What are you doing about it?

Daniel Shain: If you think about the one product that’s most complementary to a personal loan, credit insurance is high on the list. At FIG, we’re very customer-centric. We like that credit insurance is an optional product—it makes sense for some customers, not others. It’s also an incremental revenue source for us, and it helps mitigate delinquency risk through payouts from successful claims. It’s a win for both our customers and the company, offered directly through our loan origination journey.

Mike Titkov: At Telus, we do much more than telecom. We offer healthcare, pet care, smart energy platforms—a wide array of services. So it’s important for us to provide supportive experiences when our customers need them most. You mentioned that many people have just $200 in their pockets. Our customers aren’t necessarily looking for us to solve their problems, but to give them tools to solve them. Embedded insurance is a natural extension of our services.

Hanif Joshaghani: Let me give some context on Symend. We’re a customer engagement platform focused on the early stages of delinquency. We build hyper-personalized campaigns using behavioral science to nudge people toward better outcomes. We’ve cured about 200 million delinquent journeys and collected over $40-50 billion in past-due accounts across Europe, the US, Latin America, and Canada.

After COVID, with income not keeping up with inflation, people became more leveraged. Behavioral science is powerful, but if someone loses their job and has no money, nudging alone won’t help. So we launched Symend Prevent with Walnut, offering insurance products that pay bills directly if something bad happens. It supports recovery and creates brand loyalty. It complements our core mission of helping people.

Jil Macdonald: Thanks, Hanif. That was an important context. Daniel, thinking about FIG’s roadmap, how are you planning for consumer protection needs?

Daniel Shain: The number one reason our customers take a FIG loan is for debt consolidation. They often have multiple credit products and are concerned about making payments. We help simplify that with one payment and offer credit insurance embedded in the digital journey. Customers appreciate this optional product because it gives them downside protection. Our user interviews show the main reason for opting in is fear of job loss or worsening financial situations.

Mike Titkov: As a VC, we see a trend of unbundling financial services and rebundling them into customer experiences. Many companies miss opportunities in the customer journey. Embedded insurance transforms passive cost centers into revenue streams and enhances customer experience. For Telus, it fits perfectly.

Jil Macdonald: Mike, when Telus and Global Ventures evaluated insurance, what drove the decision?

Mike Titkov: As Telus’s corporate VC, we gather insight from our business units. We noticed customers don’t want protection from us, but tools by us to protect themselves. In this economic environment, that sense of security matters. As the number of services we offer grows, so does our ability to support customers. We’ve been thinking about insurance for 4-5 years, but needed the right partner.

Jil Macdonald: Hanif, why was prevention the logical next step for Symend?

Hanif Joshaghani: We already collect behavioral data and use it to profile customers. We nudge them effectively. Telcos are in competitive markets, so adding prevention keeps customers from churning. Credit protection offsets bad debt and reduces promotional poaching. We had a major auto lender reject the idea initially. I suggested they use the revenue to lower the cost and offer the product as a benefit—they immediately agreed. The configurability is powerful.

Jil Macdonald: We’re talking about new products like income loss protection and bill payment protection. Daniel, from a digital perspective, how do consumers perceive them?

Daniel Shain: Credit protection can be a hard product to explain. It’s about balancing comprehensive information with simplicity. Our customers appreciate a clear, optional experience. Transparency and ease of opting in or out are key. It helps build trust and allows customers to see the value without being pressured.

Mike Titkov: In telco, we’ve spent years perfecting the customer experience. We want insurance to be embedded, not an add-on. Our customers prefer that seamless approach.

Jil Macdonald: Embedding into infrastructure can be complex. What’s your take?

Daniel Shain: We work with Walnut and use their APIs—integration is simple. The challenge is user experience: where in the flow to offer it, how much information to share, and how to avoid drop-off. We focus on keeping everything digital, without human intervention.

Hanif Joshaghani: Our platform is built to influence behavior, so embedding insurance was natural. We already personalize, nudge, and iterate. Insurance is sold, not bought. It needs to be offered at the right time with the right message. We ticked all the boxes and control the distribution, allowing for rapid experimentation.

Mike Titkov: Exactly. We are the distribution. That means collecting every data point to understand drop-offs and issues. We then share that data with partners. Telus works with both Symend and Walnut, and it’s great to see our portfolio companies here.

Jil Macdonald: As we wrap up, we’re seeing utility companies and earn-wage access firms moving into this space. What are the takeaways for the room?

Mike Titkov: Big brands want to play a more active role in customers’ financial well-being. That’s new. Telus never saw itself as a financial partner, but today, protecting our customers is a priority. If you want to work with us, think in terms of embedded, seamless experiences.

Hanif Joshaghani: Putting on my Canadian hat: Customers here are anxious. There are external shocks beyond their control. Helping them manage future uncertainty isn’t just good business—it’s a social good. Protection, if done right, is empowering.

Daniel Shain: For us, data is everything. Amid uncertainty, we focus on optimizing credit models and delinquency predictability. We ask: how can we support customers who fall behind? That’s where we can have real impact.

Hanif Joshaghani: Searches for these types of products have spiked 400% this year. There’s demand. Consumers are actively looking for solutions.

Jil Macdonald: In surveys with our partners, over 76% of customers said they would be interested in a protection-style product. That’s new. But the key is how it’s presented: it has to feel seamless, timely, and relevant to the experience.

Here are 10 key insights 

1. Rising Financial Anxiety: Nine in ten Canadians are worried about a recession, with 80% anxious about their finances and half living within $200 of insolvency—driving demand for financial protection products.

2. Borrowers Seeking Safety Nets: The probability of default is at a record high, and borrowers are actively searching for protection, including job loss and bill payment insurance—especially as Google searches on these topics hit pandemic-era peaks.

3. Embedded Insurance Is Gaining Traction: Companies like FIG, Telus, and Symend are embedding insurance into the customer journey—transforming it from an afterthought into a core part of the financial and service experience.

4. Insurance as Revenue and Risk Mitigation: Credit insurance offers dual value—additional revenue for lenders and companies, and reduced delinquency risk through claims that cover missed payments.

5. Seamless UX Is Essential: Successful adoption hinges on simple, transparent, digital-first experiences that clearly present insurance options without friction or confusion.

6. Insurance Is Sold, Not Bought: Behavioral insights and personalization are critical. Products must be offered at the right moment, with the right message, to convert interest into action.

7. Non-Traditional Players Enter the Market: Telcos, utilities, and wage access firms are stepping into embedded protection, reframing their role from service providers to financial partners.

8. Massive Demand Signals: Partner surveys show that over 76% of customers are interested in protection products, and online searches have surged by 400%—validating this as a timely market opportunity.

9. Strategic Partnerships Power Distribution: Integration with platforms like Walnut and Symend allows brands to rapidly launch, test, and scale protection products within existing journeys.

10. Social Good Meets Business Strategy: Offering embedded protection aligns with both commercial and ethical goals—empowering customers to manage risk while fostering brand trust and loyalty.

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