B2B insurtechs are enablers

As industry utilities, B2B insurtechs help incumbents upgrade their value chains with digital assets and capabilities. For example, some offer digital claims or fraud solutions based on advanced analytics and intuitive, user-friendly apps. B2B insurtechs can be positioned as specialists, third-party administrators, or even end-to-end solutions or capability providers. The growth potential for this model is strong, as it can create a win–win–win scenario for customers, incumbents, and insurtechs.

B2B2C insurtechs are enablers and challengers

B2B2C insurtechs open the doors to new markets in adjacent industries by integrating insurance into the point of sale for car dealers, travel agencies, tech suppliers, retail stores, and banks. Through their B2B partners, these insurtechs expand the pool of potential end customers. While the market is still in the early stages, the future looks promising. For example, our experience suggests that significant profits can be generated from extended-warranty insurance products, at least for corresponding business models.

The future outlook for European insurtechs—and the potential value at stake

The future trajectory of the insurtech market is heavily determined by investment flows. According to McKinsey analysis, European insurtechs today attract approximately 20 percent of global insurtech funding volumes—a share that has remained steady over the past five years. European insurtechs had a record year in 2021, with more than €3 billion in funding. While the overall number of deals declined, deal size grew across all stages, with a higher share of late-stage deals compared with previous years. European insurtechs were collectively valued at approximately €40 billion in the same year.

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