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I spent a lot a little time lately looking at the latest in insurtech. The good thing about zooming in on a sector is that I hear things that I didn’t expect. Talking to investors has also helped me confirm some of my gut feeling on topics like cash diversification and mergers and acquisitions. — Ana
Insurtech Showdown: B2B vs. B2C
When I reached out to investors recently for our latest insurtech survey, I was curious about how the economy was affecting insurance buying decisions and whether this was making B2B companies more attractive to venture capitalists than their B2C peers.
My reasoning was that inflation could be weighing so heavily on household budgets that they might decide to cut back on expenses like insurance. It may not be the best option, but whether it’s food or better insurance, the choice becomes easier.
While businesses have also been looking to cut costs, they are less likely to forgo insurance, especially for the risks to which they are more exposed. For insurtech startups, this would create an environment where it is easier to sell B2B products than B2C. But is it really so?
As usual, it turns out that the answer is more complicated than a simple yes or no, but also more interesting.
