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I spent fairly a little bit of time these days trying on the newest in insurtech. What’s nice about zooming in on a sector is that I hear issues that I didn’t count on. Speaking to traders has additionally helped me affirm a few of my instinct on subjects like money diversification and M&As. — Anna
Insurtech faceoff: B2B vs. B2C
After I reached out to traders just lately for our newest insurtech survey, I used to be curious to know the way the economic system was affecting insurance coverage buy selections and whether or not this made B2B corporations extra interesting to VCs than their B2C friends.
My reasoning was that inflation could possibly be weighing so closely on household budgets that they could resolve to chop down spending on bills corresponding to insurance coverage. Maybe not the very best name, but when it’s both meals or higher insurance coverage, the selection turns into simpler.
Whereas companies have additionally been seeking to lower prices, they’re much less prone to forgo insurance coverage, particularly for the dangers they’re extra uncovered to. For insurtech startups, this might create an surroundings by which it’s simpler to promote B2B merchandise than B2C ones. However is it really the case?
As common, it seems that the reply is extra difficult than a easy sure or no — but in addition extra fascinating.