The global B2B2C insurance market is on track to reach $10.49 billion by 2032, reflecting a compound annual growth rate (CAGR) of 9.6% from 2023 to 2032, according to a recent report by Allied Market Research. The market generated $4.28 billion in 2022.
This anticipated growth is largely attributed to enhancements in customer experience, an expanded market reach, and increased trust and credibility within the insurance sector. Additionally, data-driven customization is expected to open further avenues for expansion. However, challenges such as integration issues and regulatory compliance may pose obstacles to growth.
In 2022, the non-life insurance segment dominated the market, accounting for over 60% of total revenue. This segment is expected to maintain its leadership throughout the forecast period, driven by its capacity to meet immediate needs, particularly in property and health protection.
Conversely, the life insurance segment is projected to experience the highest growth, with a CAGR of 11.2%. This surge is attributed to rising financial literacy and growing awareness of the importance of life insurance for long-term financial stability.
When analyzing enterprise size, large enterprises represented the majority share in 2022, contributing nearly 60% of the market’s revenue. These organizations benefit from established client bases and robust distribution networks, enabling them to form strategic partnerships and provide comprehensive insurance solutions.
In contrast, small and medium-sized enterprises (SMEs) are forecasted to grow at a more rapid pace, with a CAGR of 12.1%. SMEs’ agility and localized approaches allow them to innovate swiftly and adapt to market trends, positioning them for significant growth within the B2B2C insurance landscape.
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