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I spent quite a bit spent some time lately watching the latest news in the field of insurtech. The great thing about zooming in on a sector is that I hear things I didn’t expect. Talking to investors has also helped me confirm some of my intuition on topics like cash diversification and M&A. — Anna
Insurtech confrontation: B2B vs. B2C
When I recently reached out to investors for our latest insurtech survey, I was curious to see how the economy was impacting insurance purchasing decisions and whether it was making B2B companies more attractive to VCs than their B2C peers.
My reasoning was that inflation could weigh so heavily on household budgets that they might decide to cut back on expenses such as insurance. Maybe not the best choice, but when it comes to food or better insurance, the choice becomes easier.
While companies are also looking to cut costs, they are less likely to forego 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 products. But is it really so?
As usual, the answer turns out to be more complicated than a simple yes or no, but also more interesting.