The insurance technology (insurtech) sector has seen much technological and investment development over the past few years. Traditional insurance business lines such as health, auto, and commercial are being revolutionized by new digital-centric startups. New technologies such as AI and IoT are re-architecting insurance data, the underpinning of the insurance industry. New business models, such as P2P and on-demand insurance, are disrupting the entire ecosystem on all fronts.
This blog post aims to examine how the rest of 2019 can shape up for the insurance technology industry. After conducting a thorough analysis of the sector, we have arrived at three predictions for 2019:
- 2019 will see the highest insurtech funding on record
- Health insurance technology will continue to dominate the industry
- Insurtech startups will scale up in 2019
Prediction 1: 2019 Will See The Highest Insurtech Funding On Record
The graph below shows the total VC funding into insurtech startups by year.
This blog post examines the different components of the insurance technology (insurtech) 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 Comparison/Marketplace Is The Largest Insurance Technology Category
Let’s start off by looking at the Sector Map. We have classified 1,541 insurtech startups into 14 categories. They have raised $28B from 1,447 investors. 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/Marketplace is the largest category with 416 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...
As we make our way through Q1 of 2019, let's look back on 2018 and analyze how exit activity for insurance technology (insurtech) compares to previous years. The graphic below shows total annual insurtech exit events over time.
As the graphic demonstrates, 2018 saw a drop in insurtech exit activity compared to the previous year. The 22 exit events in 2018 represent a 44% decrease from the 39 exit events in 2017, which was the highest year on record for exit activity. However, insurtech exits are still on a general upward trend, with a 5-year CAGR of 22% from 2013 to 2018.
Here is our Q3 2018 summary report on the health technology startup sector. The following report includes a sector overview and recent activity.
Here is our Q3 2018 summary report on the insurance technology startup sector. The following report includes a sector overview and recent activity.
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.
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...
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.