How MSMEs are driving online growth for B2B insurance, tier 3 cities leading with 46% surge in digital adoption
The MSME sector in India forms a vital engine of economic growth with 40 percent of exports and above 110 million jobs. It has been embracing the digital transformation so that coverage could be faster and more efficient. Online channels have greatly advanced the B2C space of insurance; however, B2B operations have been generally offline. But this is changing very fast now. And contrary to the popular belief, it is tier 2 & 3 cities that are driving this change. This shows not only rising awareness levels beyond India’s metros but also a rising level of trust in online channels.
● Growing adoption in small markets:
Tier -3 cities recorded a 46% growth in digital insurance uptake, while Tier 2 saw 35%.
– Tier-1 cities recorded 27% growth
● Growth by Commercial lines insurance:
– Commercial lines policies registered 37% YoY growth
– The products driving this growth across all tiers are Workmen compensation followed by property, marine and liability insurance.
● Sector-Specific Demand:
– Manufacturing and logistics industries drive demand for liability and marine insurance, due to the “Make in India” initiative.
With the formalization of MSMEs, insurance aids them in risk navigation and mitigation, compliance, and scaling confidently, which enhances their contribution to India’s economy.
Growth in digital adoption among MSMEs, especially in tier 2 and 3 cities, is a testament to their evolving business practices and the expanding trust in digital platforms,” said Mr. Sajja Praveen Chowdary, Director, Policybazaar for Business. “Besides increasing operational efficiency, this also takes their economic contribution to the next level.”.
This can be a fantastic narrative that shares insights with your readers about changes in the dynamics of the B2B insurance sector and especially the role played by MSMEs in this context. We shall be more than happy to extend further data sets, arrange for interviews, or share more insight on this very topic.
