Selling insurance is tough, but it’s not bad news for insurtechs

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I had a good time some time lately watching the latest insurtech. The good thing about zooming in on a sector is that I hear things I didn’t expect. Talking to investors has also helped confirm some of my hunches on topics like cash diversification and mergers and acquisitions. — Anne

Insurtech Head-to-Head: B2B vs. B2C

When I recently reached out to investors for our latest insurance technology survey, I was curious about how the economy is affecting insurance buying decisions and whether it’s making B2B companies more attractive to investors. VC than their B2C counterparts.

My reasoning was that inflation could weigh so heavily on families’ budgets that they might decide to cut back on expenses such as insurance. It may not be the best choice, but if it’s food or better insurance, the choice becomes easier.

While companies have also sought to cut costs, they are less likely to forego insurance, especially for risks to which they are more exposed. For insurtech startups, this would create an environment in which it is easier to sell B2B products than B2C products. But is this really the case?

As usual, the answer turns out to be more complicated than a simple yes or no — but also more interesting.