Digital Platforms Help Increase Business in B2B2C Insurance during COVID-19 Crisis
The COVID-19 (coronavirus) crisis has had a significant impact on the B2B2C insurance market. Insurance distribution has taken a hit during the pandemic, especially in the travel and tourism industry, owing to travel restrictions. Moreover, a significant decline in airline traffic has also affected the business of B2B2C insurance. Non-essential retail businesses have caused a major impediment in the growth of the B2B2C insurance market.
Economic shutdowns in the automotive industry has contributed toward disruptions in global trade activities. Due to a drop in car sales, B2B2C insurance distributors have suffered heavy revenue losses. However, insurance providers are predicting a surge in the demand for goods & services in the beginning of 2024. As such, the COVID-19 crisis has accelerated the development of digital insurance platforms, which is a continuing trend.
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Capture New Opportunities by Enhancing Digital Capabilities in B2B2C Insurance
Digital platforms are helping companies in the B2B2C insurance market to gain deep customer understanding. This results in enhancement of customer journey and improves efficiency in partnerships. Companies in the B2B2C insurance market are experimenting with various digital levers such as mobile apps and websites to gain unparalleled insight via digital capabilities.
The market is undergoing a significant change with the integration of insurance propositions into digital customer journeys. There is a need to digitize the sale of insurance products such as extending the warranty and offering mobile phone insurance, since e-Commerce is projected to take off in the upcoming months. The pre-integration of insurance products on e-Commerce platforms and travel sites is anticipated to bolster market growth. Providing telephonic support to non-insurance experts helps to increase distribution of B2B2C insurance.
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AI Improves Data Protection and Lowers Revenue to Cost Expenditure
Traditional B2B2C insurance providers such as banks and car dealers are shifting toward digital platforms to broaden their revenue streams. The burgeoning growth of retail, tourism, and digital lending industries is contributing toward the expansion of the global B2B2C insurance market, which is slated to register a robust CAGR of ~9% during the assessment period. However, companies are facing analytics and data management issues, since their partners are reluctant to share the necessary data with insurance providers. This issue can be resolved with artificial intelligence (AI) and advanced analytics in order to keep business processes transparent.
The AI is being highly publicized to benefit entire customer lifecycle and is contributing toward revenue to cost reduction and fraud management in the B2B2C insurance market.
B2B2C Model Improves Bottom Lines Due to Cost Efficiency in Operations
Automation is expected to play a key role in establishing transparency in B2B2C insurance transactions. Rise of the omnichannel commerce is grabbing the attention of companies in the utilities, materials manufacturing and construction industries. Companies in the B2B2C insurance market should collaborate with technology providers, e-commerce vendors and local suppliers to scale their business activities. As such, there is an apparent demand for distributors and consumers who are acutely familiar with omnichannel models.
The B2B2C insurance market is projected to reach a revenue of US$ 1.5 Trn by the end of 2030, as B2B2C insurance helps to personalize a buyer’s experience. The cost efficiency of the B2B2C model is gaining increased popularity as this model eliminates the need for commission payments and reduces operational costs.
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B2B2C Insurance Market: Overview
- According to a latest market report published by Transparency Market Research on the B2B2C insurance market for the period 2024–2030 (wherein 2024 – 2030 is the forecast period and 2019 is the base year), rising adoption of insurance by users of a wide range of platforms such as retailers, telecom companies, utility providers, retailers, e-Commerce, and other digital players across the globe is expected to drive the B2B2C insurance market
- Globally, revenue generated by the B2B2C insurance market accounted for US$ 677.8 Bn in 2019, which is expected to expand at a CAGR of ~9% in terms of value during the forecast period
Growing Income Levels of Users: Key Driver of B2B2C Insurance Market
- In recent years, increasing urban population and growing disposable income are factors influencing the growth of the B2B2C insurance market. Developing markets are witnessing rapid growth in middle-class population with better spending propensity, expecting value added service, and seamless experiences. Developing countries are gaining demand for insurance product services, which is likely to drive the B2B2C insurance market, as this service is influencing them to opt for better lifestyles and better services.
- Increasing awareness and dependency of consumers on B2B2C insurance services for overall safety, protection, and reliability is likely to drive the market. In addition, rising retail, e-Commerce, sales, and services through digital platforms is expected to drive the growth of the B2B2C insurance market.
Collaboration with Partners Significant Opportunity for B2B2C Insurance Market
- In emerging countries such as India, allocation of huge funds by government bodies for financial assistance of consumers in terms of life and non-life insurance-based services is anticipated to create massive opportunities for the B2B2C insurance market in the near future. In addition, prominent players in the B2B2C insurance market have opportunity to target untapped markets and collaborate with businesses related to retail, service, and the financial sector for continuous engagement with their customers and to promote their premium insurance products.
Adoption of Advanced Technology in B2B2C Insurance Industry: Key Trend of Market
- Emerging digital technology is having a significant impact on the relationship between the insurer, distribution channels, and customers. Increasing popularity of e-Commerce channels has influenced insurers to provide their consumers with e-Commerce solutions in the B2B2C insurance market for value added services, continuous customer engagement, and other online solutions.
- B2B2C insurance industry such as bancassurance and noninsurance players such as car, consumer electronics, retailers, and other manufacturers, along with leasing companies are selling insurance solutions bundled with their core products, providing additional value to customers
- Rising impact of 5G and 6G networks across the globe has encouraged insurers to develop smart mobile apps, which help to provide better B2B2C insurance services and coverage plans. In addition, insurers are also focusing on providing customized solutions as per client requirements and are outsourcing solutions from local vendors. In addition, multinational companies are collaborating with local providers for smooth operations and continuous engagement with their customers.
Traditional Insurance Channels to Hamper Growth of Market
- Insurance distribution and services of traditional models are expected to restrain the growth of the B2B2C insurance market. The major challenge of B2B2C insurance is to manage and sustain value added services through collaborated partners. In addition, dependency on dealers, distributors, agents, brokers, franchisees, influencers, and financial services for the sale of premium insurance is likely to hamper the growth of the B2B2C insurance market.
B2B2C Insurance Market: Competition Landscape
- Detailed profiles of players of B2B2C insurance have been provided in the report to evaluate their financials, key product offerings, recent developments, and strategies
- Key players operating in the B2B2C insurance market include
- AXA SA
- Allianz SE
- Assicurazioni Generali S.p.A
- Berkshire Hathaway Inc.
- Zurich Insurance Group
- Prudential plc.
B2B2C Insurance Market: Key Developments
- Prominent manufacturers in the B2B2C insurance market are increasing investment on innovative B2B2C insurance services to fulfill the needs of end users. Insurance providers are also planning to expand their range of products and presence in various geographies through mergers & acquisitions and tie-ups with local B2B2C insurance providers.
- Some other key developments in the B2B2C insurance market are highlighted below:
- In July 2024, Allianz SE completed the acquisition of automobile and other property-casualty business from SulAmérica for US$ 0.60 Bn. This has helped in expansion of its business in Brazil.
- In June 2024, AXA SA collaborated with The Western Union Company, a leader in cross-border, cross-currency money movement and payments, to provide inclusive insurance products to Western Union’s customers using its westernunion.com service
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