B2B2C Insurance Market Expected to Reach $10.5 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “B2B2C Insurance Market, By Type (Life Insurance, Non-Life Insurance), By Enterprise Size (Large Enterprises, Small And Medium-Sized Enterprises), By Distribution Channel (Online, Offline), By Application (Individual, Corporate)". The B2B2C insurance market was valued at $4.3 billion in 2022, and is estimated to reach $10.5 billion by 2032, growing at a CAGR of 9.6% from 2023 to 2032.

The B2B2C insurance market is witnessing several prominent trends that are reshaping the industry landscape. There is a notable surge towards data-driven customization. Companies in the B2B2C insurance market are leveraging advanced analytics and consumer data to create highly personalized insurance products that cater to individual preferences and risk profiles. This trend not only enhances customer satisfaction but also strengthens customer loyalty. In addition, technological advancements play a pivotal role, particularly in the realm of digitalization. The adoption of mobile applications, digital platforms, and artificial intelligence is revolutionizing the distribution and accessibility of B2B2C insurance, making it more convenient and user-friendly for consumers.

Moreover, there is a growing emphasis on regulatory compliance and data privacy in the B2B2C insurance market. With an increasing focus on consumer protection and data security, adherence to stringent compliance standards has become paramount for B2B2C insurance market players. Moreover, the COVID-19 pandemic has accelerated the adoption of digital solutions and heightened awareness about the importance of insurance coverage, further driving the growth and evolution of the B2B2C insurance industry. These B2B2C insurance trends collectively signify a dynamic shift toward a more customer-centric, technologically-driven, and compliant-oriented landscape within the B2B2C insurance industry.

Furthermore, major players in the B2B2C insurance market are launching new products to cater to the changing consumer preferences. For instance, on January 2023,  SunLife, part of Phoenix Group, and iptiQ, Swiss Re’s digital B2B2C insurer, launched an innovative life insurance product for UK-based customers above 50 years of age. The new solution runs on a digital end-to-end platform and accelerates claims processing with customer-focused features. This partnership brings together SunLife’s ‘over 50s’ life insurance segment with iptiQ’s advanced technology and holistic servicing infrastructure. The newly launched product called the ‘Guaranteed Inheritance Plan’ is designed to assure an inheritance for the customers’ loved ones. By asking a set of simple questions on respective health conditions, the solution aims to optimize payouts for customers. Thus, such innovative product launches are further enhancing the growth of the B2B2C insurance market.

Moreover, B2B2C insurance market players are collaborating with each other to further enhance the experience of the customers and offer innovative products. For instance, on July 2023, Singapore-based healthcare technology company, Doctor Anywhere (DA), announced a new partnership with Allianz Partners, a B2B2C insurance and assistance. The collaboration's objective is to provide comprehensive telehealth services to Allianz's international health members in four Southeast Asian countries: Singapore, Malaysia, Thailand, and the Philippines. Responding to the increasing demand for efficient and patient-centric healthcare services, this partnership aims to improve access to high-quality healthcare in local communities. Starting from 1 August, Allianz's international health members with outpatient plans can utilize Doctor Anywhere's mobile app for a seamless healthcare experience. This includes convenient access to trusted medical advice through video consultations with locally certified doctors, complimentary medication delivery to their homes, and secure appointment scheduling and health record management. Thus, such strategies adopted by the players in the B2B2C insurance industry will enhance the growth of the market across the globe and it will further increase the adoption of B2B2C insurance policies in the upcoming years.

On the basis of application, the corporate segment is the highest growing segment. This is attributed to its sheer scale and scope of operations. Corporations often seek comprehensive insurance coverage for a wide array of assets, ranging from property and equipment to liability protection. Moreover, they are inclined toward tailored insurance packages that can be seamlessly integrated into their existing operations, providing a holistic risk management solution. This demand for comprehensive coverage and the need for streamlined processes positions the corporate segment as a significant driver of the B2B2C insurance market.

On the other hand, the individual segment is predicted to be the fastest growing segment during the forecast period. This is due to the increasing recognition among consumers of the value and convenience offered by B2B2C insurance models. Individuals are becoming more proactive in safeguarding their personal assets and well-being, seeking insurance solutions that are not only reliable but also easily accessible. The individual segment benefits from the rising trend of businesses collaborating with insurers to offer personalized coverage options, simplifying the insurance acquisition process for consumers. As a result, this segment is forecasted to experience the highest growth rate, driven by a surge in consumer awareness and demand for tailored insurance solutions in the upcoming years.

Based on region, Asia-Pacific attained the highest growth in 2022. One primary driver is the growing middle-class population in countries like China and India, which is increasingly seeking insurance coverage for various aspects of their lives. This growing demographic is accompanied by a rising trend of digitalization and e-commerce, increasing the demand for B2B2C models. Moreover, there is a surge in collaborations between established businesses and insurance providers, further amplifying the adoption of this distribution model. The evolving regulatory landscape in the Asia-Pacific region is also becoming more favorable to such innovative insurance models, providing a favorable environment for the sector's expansion. As a result, this region is poised to experience significant growth in B2B2C insurance in the coming years.

The impact of COVID-19 on the B2B2C insurance market trends was mixed, with both positive and negative aspects coming to the forefront. On the positive side, the pandemic heightened awareness of the importance of insurance coverage among consumers. This surge in awareness, coupled with increased concerns about health and safety, led to a notable growth in demand for insurance products offered through the B2B2C model, particularly in areas like health and travel insurance. In addition, businesses began recognizing the value of integrating insurance options into their services, as it provided an additional layer of security for their customers during uncertain times.

However, economic uncertainties and disruptions in various industries led to a cautious approach towards spending, impacting the purchasing behavior of consumers. This resulted in a slowdown in certain segments of the B2B2C insurance market, particularly those tied to non-essential services and products. Moreover, the shift to remote work and digital operations necessitated a rapid adaptation of technology, which presented both opportunities and hurdles for the seamless implementation of B2B2C models. Overall, while COVID-19 initially posed challenges, it also accelerated the recognition of the value proposition in B2B2C insurance, leading to innovative solutions and increased adoption in certain segments, indicating a mixed impact on the B2B2C insurance market growth.

Key Findings of the Study

• By type, the non-life insurance segment led the B2B2C insurance market in terms of revenue in 2022.
• By enterprise size, the large enterprises segment accounted for the highest B2B2C insurance market share in 2022.
• By distribution channel, the online segment accounted for the highest share in the B2B2C insurance market size in 2022.
• By region, North America generated the highest revenue in 2022.

The report profiles the key players operating in the B2B2C insurance market analysis such as AXA Partners Holding SA., Allianz , American International Group, Inc., Zurich Insurance Group, China Life Insurance Company Ltd, Berkshire Hathaway Inc., Prudential plc, ICICI Lombard General Insurance Company Ltd., UnitedHealth Group, and Munich Re. These players have adopted various strategies to increase their market penetration and strengthen their position in the B2B2C insurance market.