Consumers are thinking about risk every time they transact. But half don't understand the protection they already have — and what they value is shifting toward everyday digital products, not just travel. The opportunity is massive. The playbook is clear: remove friction with parametric payouts, embed protection at the point of sale, and make it a loyalty lever. And the urgency is real: 75% are already open to AI-assisted purchases, and the platforms that build protection into those workflows now will own the next wave of distribution. This report lays out the opportunity, the playbook, and the case for acting now.
The demand for protection is real — 86% of consumers actively think about risk when they transact, and 81% engage seriously with offers. But the experience is failing them: nearly half don't understand the coverage they already have. And the products they value most are changing — younger generations now prioritise everyday digital protection just as highly as traditional travel staples.
The protection gap is largest among Boomers — 67% don't understand their existing coverage. And for Gen Z, device theft protection (70%) now outranks trip cancellation (65%).
The protection gap is a two-part problem. First, awareness: 45% of consumers have limited understanding of their existing card benefits — rising to 67% among Boomers. Second, relevance: what consumers value most is shifting. For Gen Z, device theft (70%) outranks trip cancellation (65%). Cyber protection (66%) and shipping protection (63%) now sit in their top five. For Millennials, everyday products like device theft (75%) and shipping (72%) are nearly equal to travel staples. This isn't a seasonal travel opportunity — it's a year-round, cross-vertical one. Don't assume your customers understand their coverage, and don't limit your embedded portfolio to travel. The demand is broader, more digital, and more generationally diverse than the industry has been serving.
"Clarity about the process and the terms is most important to me, so I know exactly what will happen."
"I just want security and my information protected — and that's priceless."
The opportunity is clear. So how do you capture it — and keep it? The data reveals a two-part playbook. First, convert: automatic payouts are the single strongest purchase driver in the study, and when claims do happen, consumers want speed above all else. Second, retain: 70% would shift their booking behaviour to a platform with embedded protection, and 82% say it influences which card they hold. Conversion and retention, driven by the same thing — frictionless, embedded delivery.
Millennials respond most strongly to auto-payouts (85%), but even 58% of Boomers say it would make them more likely to buy. Speed is the #1 claims priority across every generation.
Parametric, no-claim payouts are the strongest conversion lever in the entire study — 73% say they'd be more likely to buy. Millennials index highest at 85%, but even 58% of Boomers respond positively. When claims do happen, speed is the #1 priority (31%), with Millennials leading at 35%. The competitive stakes are real: 70% would shift booking behaviour to a platform with embedded protection — rising to 78% in the US. And 82% say protection benefits influence their card choice, with travel insurance (47%) and purchase protection (41%) leading. The top purchase triggers — paying with points (25%), loyalty tier inclusion (23%), and checkout add-ons (17%) — all favour embedded distribution. For banking partners, 51% say simply explaining what's covered would make them buy. The playbook is clear: offer parametric protection, embed it at the point of sale, integrate it with loyalty programs, and make the value obvious. The barrier isn't demand — it's experience design.
"I would like it if it just did it — money in my bank very quickly without needing to make a claim."
"A quick, easy digital process with clear steps and updates. Speed matters most, but transparency and access to real support are also important."
The case for embedded protection is clear today. But the way consumers transact is about to change. Three-quarters are already open to AI-assisted purchasing — and the majority want protection handled as part of that workflow. But the data reveals a clear preference: they want AI to suggest and assist, not take over. The platforms that build protection into AI-native experiences now will own this channel.
Only 11% of Gen Z refuse AI involvement in purchases, versus 50% of Boomers. But across all generations, 61% want AI to actively handle protection — as long as they keep the final say.
The AI autonomy spectrum reveals a clear sweet spot: 30% want AI to propose options they approve, 27% want AI to recommend while they decide, and only 5% want full end-to-end autonomy. The generational divide is sharp — just 11% of Gen Z refuse AI involvement versus 50% of Boomers — but even among Gen X, 72% are open to some level of AI assistance. For protection specifically, 61% want AI actively involved, and trust flows through existing relationships: banks (40%) and booking platforms (27%) are the most trusted sources — not standalone insurers, not AI assistants. France shows surprising AI openness (86%), while Germany and the Netherlands are more cautious. The platforms that build protection into their AI-assisted workflows now — with a "suggest and approve" model, not full automation — will own the next wave of embedded distribution before competitors catch up.
"I think the most important thing is someone who actually cares and helps me with my problem, because this really makes a huge difference even if it doesn't work out in the end."
"Clear guidance first, efficient handling second, and a human, empathetic tone throughout."
Cover Genius powers embedded protection for the world's largest digital companies — from travel and eCommerce to banking and fintech. Through XCover, our global distribution platform, you can offer seamless, personalised protection that your customers actually want.
Learn More at covergenius.comThis research was conducted in March–April 2026 via structured conversational surveys with 733 qualified consumers across 7 countries.