B2B2C Insurance Market in 2020
The business to business to consumer (B2B2C) insurance market is doing incredibly well in 2020. This success is at least partially due to the widespread use of bancassurance, which essentially breaks down to the partnering of banks and insurance companies to sell insurance to bank customers from their own employees. Along with many other different variables, this has led to the B2B2C insurance market reaching a hefty value of $677.8 billion in 2019. While already an impressive number, the prospect for where the market could go looks far higher than that. In fact, especially considering the onset of new technologies, the B2B2C Insurance Market could reach record high value.
This, however, is not to suggest that there have not been struggles for the market in 2020, especially struggles directly related to the ongoing COVID-19 pandemic. Especially in areas such as tourism and travel, the B2B2C insurance market has suffered drops in revenue. Considering the lack of air traffic in particular, growth was completely diminished. This is not the only area where the insurance market has been affected, either. With non-essential businesses such as retail being closed for so long, the difficulties continued. This was further exacerbated by the shutdown of the automotive industry, stagnant sales, and complete disruption in the global trade of the cars. However, with insurance providers expecting a big spike in demand at the beginning of 2021, there is much reason for promise.
B2B2C Insurance Market Projected Growth
The market as a whole has continually found new ways to create engagement and outreach from consumers. Bancassurance is the perfect example of that with the combined efforts of two near essential services. However, as time continues to go on, the B2B2C insurance market must dig deeper by exploring resources at hand. Of those resources, analysts have pointed to two major ones that could be the key to remaining in the consumer’s eye. Those two factors both involve embracing new technology, as artificial intelligence and advanced analytics are the best tools for the market, according to these analysts. By creating more detailed and specific plans, and marketing for consumers, this may very well be the answer, especially considering the large amounts of data the market most certainly has at this point.
However, beyond this approach, when dealing more directly with engagement and outreach, analysts have pointed to other more easily integrated tools for the insurance market to use. Those factors come in the form of a much stronger focus on ecommerce as well as on the development or bolstering of mobile apps. Insurance companies have already been using digital platforms, which have increasingly helped their slagging revenues in 2020.
The B2B2C insurance market is expected to reach a massive $1.5 trillion in total value by 2030. This will be achieved through a compound annual growth rate of around 9%. Especially as COVID-19 finally is dealt with, the industry should recover and grow at the same rate or much higher than the economy as a whole.
The B2B2C insurance market has struggled and yet persevered through the pandemic by adopting digital platforms and new technologies. It will need to continue to do so in the future if it wants to maintain solid growth. But according to the majority of indicators, this strategy looks very much to be the case. As the economy recovers and grows, so will the insurance companies that insure the businesses, the cars, the travel, and even people’s lives. As a result, when the world’s economies grow, the insurance market will certainly follow.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.