Legal briefing

On-demand insurance in Spain


In this Legal Briefing, we analyse on-demand insurance, a concept which has appeared as one of the possible urgent responses to this new scenario.

The effects of the pandemic that started in 2020 involve a radical change in consumer buying habits and customs. The insurance sector in particular faces unprecedented challenges, given the disruption of the usual distribution chains, the new interests and priorities of consumers when purchasing insurance policies, and other issues.

The possibility of new lockdowns, the push for remote working, a new approach to tourism and leisure spaces, the unprecedented boom in telecommunications and distance selling, among other situations, all require the insurance sector to establish efficient responses to new insurance needs. Concepts such as on-demand insurance appear as urgent responses to this new scenario.

Main features of on-demand insurance

On-demand insurance is a legal concept that is characterised by the consumer as being a product that is contracted instantly and immediately.  It is usually linked to a consumer good or a service, in such a way that the acquirer is offered the possibility of insuring a contingency linked to that good or service at the same time as purchasing or contracting it. The consumer completes the transaction and has both the desired good or service – a trip, a phone, a computer etc. – and the insurance linked to the related risks – such as cancellation, loss or theft. A classic example is travel insurance, where the techniques of selling insurance linked to the purchase of a plane ticket or other means of transport are well established.

The entire content of the Legal Briefing can be found in the PDF.

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