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.
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.
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.
Our Innovation Quadrant divides the insurance technology categories into four different quadrants.
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.
The graph below shows the total amount of venture funding and company count in each category.
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.
As the analysis above demonstrates, Insurance Marketplace leads the sector in total companies. The Health Insurance category leads in total funding.