Insurance Technology Startup Highlights  – Q1 2018

Here is our Q1 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.

Insurance Technology Showing Early Signs of Maturation

Last quarter we saw that Insurance Technology (insurtech) funding continued on a healthy trend. This quarter we are going one level deeper on our insurtech research platform to examine its funding by round. From our analysis we can conclude that the insurtech sector is showing early signs of maturation.

This conclusion comes from two takeaways:

  • Funding amounts are showing variable innovation
  • Funding counts are shifting to mid-stage events

We’ll explain these takeaways with some graphics that show insurtech funding activity by round.

To help set the stage, the graphic below illustrates insurtech funding events over time. As you can see, the sector’s funding events saw consistent growth year over year.

Insurance Technology Funding Count by Quarter
Insurance Technology Funding Count by Quarter

Insurtech Funding Amounts Showing Variable Innovation

We’ll start off by examining the annual insurtech funding amounts. The below graph shows recent insurtech funding amounts in different rounds.

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

Insurtech funding peaked in 2015, and has recovered slightly since. From this graph it’s clear that total insurtech funding for these rounds is up over the past 5 years.

Let’s look at the insurtech funding amount by round as a percentage, which shows changes independent of the total size.

Insurance Technology Funding Amount Percentages
Insurance Technology Funding Amount Percentages

As we can see, there is some rather noisy turbulence within insurtech funding over the past few years. Each funding stage took turns experiencing ups and downs.

These two graphics show that the insurtech funding amounts are shifting all over the place without any clear trends. Therefore we can conclude that there is variable innovation within the sector.

So we have seen the funding amounts graphs indicate variable innovation. Would the funding event count graphs show the same picture? Let’s examine them in the next section to find out.

Insurtech Funding Counts Shifting to Mid-Stage Events

Let’s now look at the annual insurtech funding event counts. The below graph shows the insurtech funding counts in different rounds over recent years.

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

The above graph shows that insurtech funding counts in all rounds saw steady growth from 2012 to 2017. This corresponds with the general upward trend seen in the insurtech funding amounts graph.

Let’s now look at the insurtech funding count by round as a percentage, which can show shifts more clearly.

Insurance Technology Funding Count Percentages
Insurance Technology Funding Count Percentages

This graph shows that from 2012-2017, the Seed round funding count percentage dropped. To compensate for that decrease, the funding count percentages for Series B and Series C increased.

Specifically, the Seed round funding count dropped from 65% to 55% from 2012 to 2017. In contrast, the Series B funding count increased from 5% to 11%. The Series C funding count increased from 2% to 7%. The changes in all the other rounds were small enough to be negligible.

Combining these two graphics, we can see that insurtech funding counts shifted slightly from the Seed round to mid-stage from 2012 to 2017.

Conclusion: The Insurtech Sector Is Starting to Mature Slightly

In conclusion, we see that insurtech funding amounts are showing variable innovation in all directions. Meanwhile, insurtech funding counts saw an increase in mid-stage events. These observations led us to conclude that the insurtech sector is showing early signs of maturation. Overall funding counts continue to show growth, but investors are finding more mid-stage companies to bet on.

What are your thoughts on this? Let us know in the comments section below.

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 Funding Continues on a Healthy Trend

The Insurance Technology (insurtech) sector is seeing a lot of activity. How have its funding trends evolved over time? On our insurtech research platform, we have analyzed the data through 2017 and can conclude that the investments in insurtech continue on a healthy trend despite a decline in certain metrics.

We have come to this conclusion from the following three takeaways:

  • The number of insurtech deals has been growing consistently year over year
  • The number of insurtech investors participating in the deals has been on an upward trend
  • Insurtech funding amounts have seen a decline over the last few years

We will illustrate these takeaways with a series of graphics to show the trend of insurtech investments over time.

Annual Insurtech Funding Events Growing Consistently

We will start off by examining the annual number of insurtech startup funding deals, stacked by quarters.

Insurance Technology Funding Count by Quarter
Insurance Technology Funding Count by Quarter

This graph illustrates that the number of insurtech funding events saw consistent growth year over year. Specifically, the CAGR in funding events from 2012 to 2017 is 26%. In addition, the number of funding events in 2017 was 108% of that in 2016.

We have seen that insurtech funding events are showing steady growth, but what about the investor interest in the sector?

Insurtech Investor Interest Has Been Growing

To gauge how investors are feeling, let’s look at the total number of insurtech investors who participated in each financing round.

Insurance Technology Total Number of Investors
Insurance Technology Total Number of Investors

This graph shows that insurtech investor interest has been growing for the past few years and then leveled off in 2017. The CAGR in the number of participating investors from 2012-2017 is 39%, and the 2017 total has declined from the 2016 total by 3%.

We have seen that insurtech funding events are increasing steadily and investor interest is seeing growth for the most part. Let’s now examine the funding amounts at the annual level to complete the picture on the state of insurtech investment.

Insurtech Funding Amounts Declining Over the Last Few Years

Let’s now analyze the insurtech funding amounts over the years stacked by quarters.

Insurance Technology Funding by Quarter
Insurance Technology Funding by Quarter

Upon first glance, insurtech funding amounts saw explosive growth up until 2014 and then declined steadily year by year afterwards. In fact, the CAGR in funding amounts from 2012 to 2017 is 25%. Moreover, the funding in 2017 was only 81% of that in 2016.

Yet upon closer analysis, we find that the massive funding amounts in 2014 and 2015 were caused by a couple large outlier funding rounds in the sector. In Q4 2014, the Chinese insurance company Ping An raised a $4.75 billion post-IPO equity round. In Q2 2015, companies such as ZhongAn, Zenefits, and Oscar Health collectively raised $1.58 billion. These large outlier funding events all had a skewing effect upon the trend of annual insurtech funding amounts.

Conclusion: Despite Some Metrics Declining, Insurtech Funding Continues on a Healthy Trend

In summary, the above graphics show that insurtech funding events experienced steady growth at the annual level, and its investor interest is generally increasing. However, insurtech funding amounts have seen a decline in recent years, largely as a result of some outlier funding rounds. These takeaways lead us to conclude that insurtech funding is showing general signs of health. It’ll be interesting to see how this sector’s investment trend turns out in 2018.

What are your thoughts on this? Let us know in the comments section below.

To learn more about our complete Insurance Technology research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Insurance Technology Sector Overview – Q4 2017

The Insurance Technology sector (insurtech) is one of the hottest technology sectors and has seen funding and exit momentum over the past few years. Yet what are the different components of insurtech and how do they make up this startup ecosystem? On our insurtech research platform, we have classified the companies in the sector into functional categories. This blog post examines these categories and how they compare with one another through a series of graphics.

Insurance Comparison/Marketplace Is the Largest Insurtech Category

Let’s start off by looking at the Logo Map for the Insurance Technology sector. As of January 2018, we have classified 1,422 insurtech startups into 14 categories which collectively raised $19 billion in funding. The Logo Map highlights the number of companies in each category and a random sampling of these companies.

Insurance Technology Logo Map
Insurance Technology Logo Map

We can see from the Logo Map above that Insurance Comparison/Marketplace is the largest insurtech category with 406 companies. This category is comprised of companies that serve as a marketplace for consumers to buy insurance of any kind (from car to home to health), or to compare different insurance providers. Some example companies in this category include CoverHound, Goji, PolicyGenius, and Coverfox Insurance.

We have seen what the different categories in insurtech are and how many companies are within each category. What about their funding and maturity in relation to one another? Let’s look at our Innovation Quadrant to find out.

Most of the Insurance Technology Categories Are Pioneers

Our Innovation Quadrant for the insurtech sector divides the categories within the sector into four different quadrants according to their average funding and average age. The Heavyweights are the companies that have reached maturity with significant financing. The Established are those that have reached maturity with less financing. The Disruptors are less mature but with significant financing. The Pioneers are less mature and with earlier stages of financing.

Insurance Technology Innovation Quadrant
Insurance Technology Innovation Quadrant

We can see from our Innovation Quadrant above that most of the categories within Insurance Technology belong in the Pioneers quadrant. The Health Insurance, Auto Insurance, and Life, Home, P&C Insurance categories have raised more funding and thus made their way into the Disruptors quadrant. The Reinsurance category is in the Heavyweights quadrant for having reached maturity with significant financing.

We’ve now seen how the insurtech sector is categorized and the relative stages of innovation for those categories. How do these categories stack up against one another in a holistic view? Let’s look at the Total Funding and Company Count Graph.

Health Insurance Startups Have the Most Funding

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

Insurance Technology Total Funding and Company Count
Insurance Technology Total Funding and Company Count

We can see from the graph above that while Insurance Comparison/Marketplace has the most companies in the insurtech sector with 406 companies, it’s the Health Insurance category that leads the sector in total funding with around $10 billion. The Health Insurance category is comprised of companies that offer health or travel insurance, either for individuals or for businesses. Some example companies in this category include Oscar Health, InstaMed, Patientco, and SimplyInsured.

Conclusion: Most Insurtech Categories Have Large Growth Potential

The graphics above indicate that most of the insurtech categories are still in their infancy in terms of their funding and maturity. In addition, the sector is bustling with a good number of Insurance Comparison/Marketplace companies. Yet the Health Insurance category has received the most funding. It will be interesting to see if this trend continues in 2018.

What are your thoughts on this? Let us know in the comments section below.

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.

Insurtech Exit Activity Growing Over Time

Insurance Technology has become one of the hottest sectors in recent years, with a plethora of companies entering the space. How does its overall exit activity trend over time? On our insurtech research platform, we have analyzed the data through 2017 and can conclude that insurtech exit activity continues to be on a healthy upward trend.

This observation was derived from two takeaways:

  • Insurtech exit events are on a general upward trend at the annual level
  • Insurtech exit events are showing overall growth at the quarterly level

We’ll illustrate these takeaways with two graphics that show insurtech exit activity trends over time.

Insurtech Exit Events On General Upward Trend Annually

We’ll start off by examining the insurtech exit events from 2011 to 2017. Exit events include both acquisitions and IPOs. The below graph highlights the number of insurtech exit events by year stacked by quarters.

Insurance Technology Exits by Quarter - Stacked
Insurance Technology Exits by Quarter – Stacked

This graph illustrates that insurtech exit activity is on a robust upward trend at the annual level. Specifically, the CAGR in exit activity from 2012 to 2017 is 46%.

Let’s now see if the exit activity’s growth trend holds at a quarterly level as well.

Insurtech Exit Events Showing Overall Quarterly Growth

Below is a graph of the number of insurtech exit events by quarter.

Insurance Technology Exits by Quarter - Cluster
Insurance Technology Exits by Quarter – Cluster

The above graph shows that insurtech exit activity is demonstrating overall growth at the quarterly level, with some outlier spikes and dips which are to be expected. The number of exit events in Q1 2017 was 120% of those in Q1 2016. Q2 2017 numbers were 167% higher than the year before. However, Q3 and Q4 of 2017 saw a decline compared to 2016 figures.

Conclusion: Insurtech Exit Activity Is Seeing Overall Growth

In summary, we can conclude from these takeaways that insurtech companies are getting acquired and going public at an increasing pace over time. It’ll be interesting to see if this trend continues into 2018.

What are your thoughts on this? Let us know in the comments section below.

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 Market Highlights  – Q3 2017

Here is our Q3 2017 summary report on the Insurance Technology startup sector. The following report includes a startup landscape overview, graphical trends with insights, and recent funding and exit events.

We are currently tracking 1450 Insurance Technology companies in 14 categories across 61 countries, with a total of $19.5 Billion in funding. Click here to learn more about the full Insurance Technology market report.

Insurance Technology Companies Founded by Year – Q3 2017

The following graph shows the founding year distribution in the Insurance Technology sector. The graphic includes data through July 2017.

Insurance Technology Companies Founded by Year
Insurance Technology Companies Founded by Year

The above graph summarizes the number of Insurance Technology companies founded in a certain year. 2015 ranks at the top with around 133 companies founded in that year alone. 2014 is the runner-up with around 131 companies founded in that year.

We are currently tracking 1407 Insurance Technology companies in 14 categories across 61 countries with a total of $19.4 Billion in funding. Click here to learn more about the full Insurance Technology market report.