Insurance Technology Sector Overview – Q3 2018

The insurance technology sector has seen stable funding in recent years. This blog post examines the different components of the insurtech sector and how they make up this startup ecosystem. We will illustrate what the categories of innovation are and which categories have the most companies. We will also compare the categories in terms of their funding and maturity.

Insurance Marketplace Is the Largest Insurance Technology Category

Let’s start off by looking at the Sector Map. We have classified 1519 insurance technology startups into 14 categories that have raised $25 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.

Insurance Technology Sector Map

We see that Insurance Comparison and Marketplace is the largest category with 415 companies. These companies enable consumers to compare different insurance providers or buy insurance of any kind (car to home to health). Some example companies are Goji, Policygenius, CoverHound, and Coverfox.

Let’s now look at our Innovation Quadrant to find out the funding and maturity of these categories in relation to one another.

The Pioneers Quadrant Has the Most Insurance Technology Categories

Our Innovation Quadrant divides the insurance technology categories into four different quadrants.

Insurance Technology Innovation Quadrant

We see that the Pioneers quadrant has the most insurance technology categories with 10. These categories are in the earlier stages of funding and maturity. The Disruptors quadrant has 3 categories that have acquired significant financing at a young age. The Heavyweights quadrant has Reinsurance as its one category. This category has reached maturity with significant financing.

We’ve analyzed the insurance technology categories and their relative stages of innovation. Let’s now look at how they stack up against one another in terms of their total funding versus company counts.

Health Insurance Startups Have the Most Funding

The graph below shows the total amount of venture funding and company count in each category.

Insurance Technology Total Funding and Company Count

As the above graphic implies, the Health Insurance category leads the sector in total funding with $11.4B. Life, Home, P&C Insurance and Auto Insurance follow in second and third places with $8.4B and $7.6B in total funding, respectively.

Health Insurance contains companies that offer health-related insurance products for consumers and businesses. Some example companies in this category include HealthSherpa, GoHealth, Oscar, and Stride Health.

Conclusion: Insurance Marketplace and Health Insurance Lead Insurtech

As the analysis above demonstrates, Insurance Marketplace leads the sector in total companies. The Health Insurance category leads in total funding.

To learn more about our complete insurance technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Health Insurance Category Leads Insurance Technology Funding

We’ve previously highlighted that insurtech funding has remained stable in recent years. When we take a closer look at the funding trends per insurtech category, we notice that the Health Insurance category leads in both Q3 and overall funding.

We’ll highlight this observation with some graphics and discussions below.

The Health Insurance Category Leads Insurance Technology In Q3 Funding

To start off, let’s review the amount of funding raised this quarter per category within insurance technology.

Insurance Technology Latest Quarter Category Funding

The above graphic highlights that the Health Insurance category leads the sector in Q3 funding with $480M. Its funding is 2.4 times the funding of the next category, Auto Insurance at $204M.

Health Insurance contains companies that offer health-related insurance products for consumers and businesses. Some example companies in this category include HealthSherpa, GoHealth, Oscar, and Stride Health.

Let’s now investigate how the insurtech categories’ funding compare with each other historically.

The Health Insurance Category Also Leads in All-Time Funding

The graph below shows the all-time funding for the various insurance technology categories. The Q3 funding and growth rates of these categories are also highlighted.

Insurance Technology Total Category Funding

As the bar graph indicates, the Health Insurance category also leads in total funding at $11.4B. Life, Home, P&C Insurance category follows in second place with $8.4B in total funding.

In summary, Health Insurance category leads the insurtech sector in funding. Let’s see how the the rest of 2018 shapes up for insurance technology!

To learn more about our complete insurance technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Insurance Technology Startup Highlights – Q3 2018

Here is our Q3 2018 summary report on the insurance technology startup sector. The following report includes a sector overview and recent activity.

To learn more about our complete insurance technology report and research platform, visit us at www.venturescanner.com or contact info@venturescanner.com.

Mid-Year Insurance Technology Exits Analysis

Our recent insurance technology quarterly highlights provided a state of the sector summary. Now we’re performing a deep dive examination of insurtech exits to see how things are shaping up on the M&A and IPO front.

Based on analysis on our insurance technology research platform, we see that exit activity in the first half of 2018 is trending down from the previous two years.

2018 Mid-Year Insurance Technology Exit Activity Lower Than 2017 And 2016

Let’s take a closer look at the number of insurance technology exit events by year.

Insurance Technology Exits by Quarter

The above graphic shows 13 exits in the first half of 2018. For the past three years, Q3 and Q4 accounted for 53% of total exit events on average. If that trend holds, 2018 exits will finish the year lower than 2017 and 2016, but higher than 2015. We’ll see if the second half of the year changes this trend!

To learn more about our complete insurance technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Insurance Technology Startup Highlights – Q2 2018

Here is our Q2 2018 summary report on the insurance technology startup sector. The following report includes an overview, recent activity, and a category deep dive.

To learn more about our complete insurance technology report and research platform, visit us at www.venturescanner.com or contact info@venturescanner.com.

Insurtech Funding Analysis by Category

Last quarter we discovered that the insurance technology sector is showing early signs of maturation. This quarter we are delving deeper on our insurtech report and research platform to examine funding by category. From this analysis, we conclude that the Insurance Comparison and Health Insurance categories lead the sector in category funding.

This conclusion comes from three key observations:

• Insurance Comparison leads the sector in Q2 funding
• Health Insurance dominates all-time insurtech category funding
• Insurance Comparison has the highest funding growth percentage

We’ll explain these key observations with some graphics and discussions below.

Insurance Comparison Leads Insurtech in Q2 Funding

To start off, let’s study the insurance technology funding amounts by category in Q2.

Insurance Technology Current Quarter Category Funding

The above graphic shows that Insurance Comparison leads the sector in Q2 2018 funding. Insurance Comparison raised the most funding last quarter with $323M. Health Insurance came in second with $294M.

So we’ve witnessed how different insurtech categories stack up in their Q2 funding. But how do these categories’ funding compare with each other historically? Let’s investigate that in the next section.

Health Insurance Dominates All-Time Funding; Insurance Comparison Grew the Fastest

The graph below summarizes the all-time funding in insurtech categories as well as their funding growth percentages.

Insurance Technology Total Category Funding

Without a doubt, the bar graph demonstrates that Health Insurance leads in all-time funding with $11B. It’s also notable that its funding is 130% more than the next category–Life, Home, P&C Insurance–which has over $8B.

The line graph in the above graphic indicates that Insurance Comparison funding grew the fastest quarter over quarter with a growth percentage of 18%.

Conclusion: Insurance Comparison and Health Insurance Are At Forefront of Insurtech Funding

In summary, we have analyzed the insurtech funding amounts in different insurtech categories. Insurance Comparison leads in last quarter’s funding. We also observed that Health Insurance dominates the sector in all-time funding, while Insurance Comparison funding had the highest growth percentage in Q2. It’ll be interesting to see if any other insurtech categories will catch up and take the lead in the rest of 2018.

To learn more about our complete insurance technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Insurance Technology Sector Overview – Q1 2018

The insurance technology sector has seen an abundance of activity over the past few years. As we previously analyzed, insurtech funding has shown early signs of maturation and its exit events have seen robust growth.

We will now do a deeper dive of the different components of insurance technology and how they make up this startup ecosystem. We have classified the companies into 14 categories. This blog post will illustrate what these categories are and which categories have the most companies. We will also look at how these categories compare with one another in terms of their funding and maturity.

Insurance Marketplace Is the Largest Insurance Technology Category

Let’s start off by looking at the Sector Map for the insurance technology sector. As of March 2018, we have classified 1503 insurance technology startups into 14 categories that have raised $22 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.

Insurance Technology Sector Map

We see that Insurance Comparison/Marketplace is the largest category with 420 companies. These companies enable consumers to compare different insurance providers, or buy insurance of any kind (car to home to health). Some example companies are Goji, Policygenius, CoverHound, and Coverfox.

We have seen what the different categories making up this sector are and the number of companies in each. What about their funding and maturity in relation to one another? Let’s look at our Innovation Quadrant to find out.

Reinsurance Is the Heavyweight Category in Insurance Technology

Our Innovation Quadrant divides the insurance technology categories into four different quadrants.

Insurance Technology Innovation Quadrant

We see that the Pioneers quadrant has the most insurance technology categories with 10. The Pioneer categories are in the earlier stages of funding and maturity. The Disruptors quadrant includes Health Insurance, Auto Insurance, and Life, Home, P&C Insurance. These three categories have acquired significant financings at a young age. The Heavyweights quadrant contains the Reinsurance category. This category has reached maturity with significant financing. Reinsurance companies provide insurance products to other insurance companies to help them hedge their bets and streamline their costs. Some example companies are AnalyzeRe, PlaceRe, PeakRe, and EazyRe.

We’ve seen the insurance technology categories and their relative stages of innovation. Let’s now look at how they stack up against one another in terms of their total funding versus company counts.

Health Insurance Startups Have the Most Funding

The graph below shows the total amount of venture funding and company count in each category.

Insurance Technology Total Funding and Company Count

As noted earlier, Health Insurance, Auto Insurance, and Life, Home, P&C Insurance have the highest average funding per company. The above graphic highlights that these three categories also have the highest total funding in insurtech. Among the three categories, Health Insurance leads the sector with over $10 billion in total funding.

Health Insurance contains companies that offer health-related insurance products for consumers and businesses. Some of the best-funded companies in this category are Oscar Health ($893M), Zenefits ($584M), and Clover Health ($425M). It’s also noteworthy that the funding in Health Insurance is 28% higher than the funding in the next category, Life, Home, P&C Insurance.

Conclusion: Insurance Marketplace and Health Insurance Categories Lead Insurtech

From the above analysis, we can see that the Insurance Marketplace category leads the sector in total companies. The Health Insurance category leads the sector in total funding. On the other hand, the Reinsurance category stands out as the Heavyweight category in our Innovation Quadrant. It has reached maturity with significant average funding per company versus other categories. It’ll be interesting to see how the insurance technology landscape will change and develop throughout the rest of 2018.

To learn more about our complete insurance technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.