Promoting insurance coverage is difficult, however that is not dangerous information for insurtechs

W
elcome to the TechCrunch Trade, a weekly startups-and-markets e-newsletter. It’s impressed by the daily TechCrunch+ column the place it will get its title. Need it in your inbox each Saturday? Enroll here.

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 anticipate. Speaking to buyers has additionally helped me verify a few of my instinct on matters like money diversification and M&As. — Anna

Insurtech faceoff: B2B vs. B2C

Once I reached out to buyers lately for our newest insurtech survey, I used to be curious to know the way the financial 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 might resolve to chop down spending on bills equivalent to insurance coverage. Maybe not one of the best name, but when it’s both meals or higher insurance coverage, the selection turns into simpler.

Whereas companies have additionally been seeking to reduce prices, they’re much less prone to forgo insurance coverage, particularly for the dangers they’re extra uncovered to. For insurtech startups, this is able to create an atmosphere through which it’s simpler to promote B2B merchandise than B2C ones. However is it really the case?

As typical, it seems that the reply is extra sophisticated than a easy sure or no — but in addition extra fascinating.