Insurance companies are exploring new embedded insurance models in high-growth sectors like ecommerce and fintech in India. Payment platforms such as Paytm, PhonePe, and BharatPe are actively promoting insurance options to their merchants, particularly those taking credit through these services. This trend is supported by startups like Riskcovry and Assurekit, which offer tailored insurance products designed to protect merchants from risks such as return to origin (RTO) and fraudulent orders. Industry estimates indicate that these embedded insurance products could represent a significant market opportunity, valued between $5 to $8 billion as more merchants adopt them. However, these products are often loss-making for insurers, leading to a focus on data analytics to improve pricing and reduce risks associated with negative selection. Insurance companies are also implementing basic checks to mitigate fraud risks, working closely with insurtech startups to enhance their offerings. Ecommerce enablement platforms like Shiprocket are leveraging AI to provide insights that further protect merchants from fraud and RTO issues.