Insurance Technology Market Overview and Innovation Quadrant – Q2 2017

The following post highlights how Venture Scanner categorizes the Insurance Technology startup landscape, and presents our Innovation Quadrant showing how those categories compare to one another. The data for this post is through April 2017.

Insurtech Q2 2017 Logo Map

The above sector map organizes the sector into 14 categories and shows a sampling of companies in each category.

Insurtech Innovation Quadrant Q2 2017

Our Innovation Quadrant provides a snapshot of the average funding and average age for the different Insurance Technology categories and how they compare with one another.

  • Heavyweights: These categories are comprised of companies that have reached maturity with significant financing.
  • Established: These categories are comprised of companies that have reached maturity with less financing.
  • Disruptors: These categories are comprised of companies that are less mature with significant financing.
  • Pioneers: These categories are comprised of companies that are less mature with earlier stages of financing.

The definitions of the Insurance Technology categories are as follows

Auto Insurance: Companies that offer car insurance, including car telematics products which detect your mileage and driving behavior to customize your insurance plan

Consumer Insurance Management Platforms: Companies that enable consumers to manage their insurance and claims, including mobile apps that allow users to file claims right at the spot of an accident

Employee Benefits Platforms: Companies that help enterprises build or acquire employee benefits platforms that deliver healthcare and other insurance products to their employees

Enterprise/Commercial Insurance: Companies that offer insurance plans to businesses, including corporations, startups, and freelancers

Health/Travel Insurance: Companies that offer health or travel insurance, either for individuals or for businesses

Insurance Comparison/Marketplace: Companies that serve as a marketplace for consumers to buy insurance of any kind (car to home to health), or compare different insurance providers. These are 3rd party companies that don’t offer insurance plans themselves, but act as a brokerage agent between insurance providers and consumers

Insurance Data/Intelligence: Companies that collect, process, and analyze data analytics and business intelligence for the insurance industry

Insurance Education/Resources: Companies that provide educational material and resources that give information about how insurance works

Insurance Infrastructure/Backend: Companies that help insurance companies with their day-to-day operations, including CRM for agents, communication tools, and claim filing tools

Insurance User Acquisition: Companies that help insurance companies find and manage new leads and then to acquire those leads as clients

Life, Home, Property & Casualty Insurance: Companies that offer life, home, and property insurance, as well as other kinds of insurance such as disability and marriage insurance

P2P Insurance: Companies that offer peer-to-peer insurance, in which a group of policyholders jointly pay for the insurance of an item that they mutually own, share, or rent (such as a car, a house, or media equipment)

Product Insurance: Companies that offer insurance and/or warranties for products that a user purchases, from tech gadgets to diamonds

Reinsurance: Companies that provide insurance products to other insurance companies, helping them hedge their bets and streamline their costs

We are currently tracking 1,220 Insurance Technology companies in 14 categories across 61 countries, with a total of $18 Billion in funding. Click here to learn more about the full Insurance Technology startup market report.

Insurance Technology Funding Trends – Q2 2017

The following graphs highlight recent trends in Insurance Technology (insurtech) startup funding activity. The graphics include data through January 2017.

Insurtech Q2 2017 Funding By Year

The above graph summarizes the total funding raised by Insurtech startups for each year. 2014 is the best year with over $6B in funding. 2015 comes in at second with just under $4B in funding.

Insurtech Q2 2017 Vintage Year Funding

The above graph summarizes the total amount of funding raised by Insurtech companies founded in a certain year. Companies founded in 2013 have raised the most funding at just over $3B.

We are currently tracking 1,201 Insurtech companies in 14 categories across 61 countries, with a total of $18 Billion in funding. Click here to learn more about the full Insurance Technology report.

Insurance Technology Funding by Round – Q1 2017

The following two graphs summarize the rounds of funding going into the Insurance Technology space. Please note these graphics are made using data through January 2017.

Insurance Technology Funding Amount by Round
Insurance Technology Funding Amount by Round

The graph above shows the total amount of VC funding broken out by round. In recent years, we’ve seen a large increase in the amount of Series A and Series C funding events. The amount of Series B and Series D funding events have seen some growth as well.

Insurance Technology Funding Count by Round
Insurance Technology Funding Count by Round

The graph above shows the total count of funding events broken out by round. We’ve seen a general upward trend which peaked in 2015 and then declined a bit. Earlier stage deals (Seed, Series A, Series B) have seen the largest growth in the number of funding events.

We are currently tracking 1185 Insurance Technology companies in 14 categories across 60 countries, with a total of $17.8 Billion in funding. Click here to learn more about the full Insurance Technology market report.

Insurance Technology Activity by Selected Investors – Q1 2017

The following graph summarizes the investor activity in the Insurance Technology space. Please note these graphics are made using data through January 2017.

Insurance Technology Investor Activity Q1 2017

The above analysis summarizes the total number of investment rounds Insurtech investors participated in, and the number of unique companies funded by selected investors. 500 Startups takes the lead in both metrics, with 16 total investments into the space and over 15 companies backed. Other major investors include New Enterprise Associates, First Round Capital, and Index Ventures.

We are currently tracking 1,169 Insurance Technology companies in 14 categories across 58 countries, with a total of $18 Billion in funding. Click here to learn more about the full Insurance Technology market report.

Insurance Technology Exits by Category and by Year – Q1 2017

The following graphs highlight the exit activity in the Insurance Technology sector. The graphics include data through January 2017.

insurance-technology-exits-by-category
Exit Activity by Category in Insurance Technology

The above graph summarizes the number of exits (acquisitions and IPOs) in each Insurance Technology category. The Insurance Infrastructure/Backend category leads the sector with 20 acquisitions and 4 IPOs. The Insurance Comparison category is the runner-up with 14 acquisitions and 7 IPOs.

insurance-technology-exits-by-year
Exit Activity by Year in Insurance Category

The above graph summarizes the number of exits (acquisitions and IPOs) in Insurance Technology by year. 2016 currently leads the sector with 22 acquisitions. 2014 is the runner-up with 10 acquisitions and 3 IPOs.

We are currently tracking 1145 Insurance Technology companies in 14 categories across 57 countries, with a total of $17.5B in funding. Click here to learn more about the full Insurance Technology landscape report and database.

Venture Investing in Insurance Technology – Q1 2017

The following graphs highlight venture investing trends into the Insurance Technology (Insurtech) sector. The graphics include data through January 2017.

insurtech-venture-investing

The above graph compares the total venture funding in each Insurtech category to the number of companies in the category. The Health category is leading in funding, with just over $9B. Insurance Comparison takes the lead in company count, at around 280.

Insurance Technology Average Funding by Category

The above analysis summarizes the average company funding in each Insurtech category. The Life, Home, and P&C category leads the sector with around $300M in average funding per company, followed by the Auto Insurance and Health categories.

We are currently tracking 1,102 Insurance Technology companies in 14 categories across 54 countries, with a total of $17B in funding. Click here to learn more about the full Insurance Technology landscape report and database.

Average and Median Age by Insurance Technology Category – Q1 2017

The following graph shows average and median age in the Insurance Technology sector. The graphic includes data through January 2017.

average-median-age-insurtech
Average and Median Age by Insurance Category

The above graph summarizes the average age and median age of companies in each Insurance Technology category. The Reinsurance category ranks as the most mature Insurance Technology category with an average age of 23 years and a median age of 16 years. The Life, Home, P&C Insurance category comes in as the second oldest category, with a average age of 14 years and a median age of 15 years.

We are currently tracking 1101 Insurance Technology companies in 14 categories across 54 countries, with a total of $17.4 Billion in funding. Click here to learn more about the full Insurance Technology landscape report and database.