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I spent quite a little bit of time currently the newest in insurtech. What’s great about zooming in on a sector is that I hear things that I didn’t expect. Talking to investors has also helped me confirm a few of my intuition on topics like money diversification and M&As. — Anna
Insurtech faceoff: B2B vs. B2C
After I reached out to investors recently for our latest insurtech survey, I used to be curious to know the way the economy was affecting insurance purchase decisions and whether this made B2B firms more appealing to VCs than their B2C peers.
My reasoning was that inflation may very well be weighing so heavily on family budgets that they might resolve to chop down spending on expenses corresponding to insurance. Perhaps not the very best call, but when it’s either food or higher insurance, the selection becomes easier.
While businesses have also been trying to cut costs, they’re less more likely to forgo insurance, especially for the risks they’re more exposed to. For insurtech startups, this could create an environment through which it is simpler to sell B2B products than B2C ones. But is it actually the case?
As usual, it seems that the reply is more complicated than an easy yes or no — but additionally more interesting.
