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.
The insurance technology (insurtech) industry has seen $27B in total all time funding. Let's analyze the investors making bets into insurtech and identify the most active firms.
The graphic below shows insurtech investors based on their number of investments into the sector. If an investor participates in two investment rounds in the same company (such as a Series A and Series B), that would qualify as two investments for this graphic.
As the graphic demonstrates, 500 Startups has made the most bets in the insurtech sector with 39 investments. Plug and Play follows in second place with 27 investments. Examples of companies 500 Startups invested in include Kin Insurance, Indio Technologies, Embroker, and Jones. Let's see which investors make their way onto this list in 2019!
Now that 2018 is complete, let’s examine how funding in insurance technology (insurtech) compares to previous years. The graphic below shows the total annual insurtech funding amounts over time.
As the graphic demonstrates, insurtech funding in 2018 was around the $3.8B mark. It represents a meager 2% increase from the previous year’s funding. Some of the largest funding events in 2018 include a $375M Corporate round for Oscar Health, a $300M Series B for Devoted Health, a $200M Series F for Policybazaar, and a $200M Series C for Bright Health. Nonetheless, insurtech funding grew at a CAGR of 18% from 2013 to 2018. We’re now eager to see if its funding can break away from its relatively steady state and into a growth phase again!
Here is our Q4 2018 summary report on the insurance technology startup sector. The following report includes a sector overview and recent activity.
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.
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,...
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.
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...
Here is our Q3 2018 summary report on the insurance technology startup sector. The following report includes a sector overview and recent activity.
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.
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!
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.
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.
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...
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...
Last quarter we reviewed insurance technology exit activity and saw its healthy upward trend. We are now going one step further on our insurtech report and research platform to examine exits by category. We conclude that the Insurance Backend and Auto Insurance categories are at the forefront of insurtech exit activity.
This conclusion was derived from two key data points:
- The Insurance Backend category leads in the number of exits
- The Auto Insurance category leads in acquisition amount
We’ll explore these takeaways in some more detail below.
To help set the stage, the graphic below shows insurtech exit activity over time. As you can see, the sector’s exit activity grew significantly over the past few years with a slight drop in 2017 from 2016.
Insurance Backend Leads Insurtech in the Number of Exits
The below graph highlights the number of insurtech exit events by category.
This graph shows that the Insurance Backend category leads the sector with 50 exit events....
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.
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.
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.
Our sector maps are snapshots of emerging technology sectors. They show what the different categories in a sector are and how many startups are within each category. They also present a small sampling of the current startups that are innovating in each category.
We will share our most up-to-date sector maps in a two-part series. Below you will find sector maps for the Blockchain Technology, Energy Technology, Financial Technology, Health Technology, Insurance Technology, Video Technology, and 3D Printing sectors.
You can see the other 8 updated sector maps for Artificial Intelligence, Internet of Things, Marketing Technology, Real Estate Technology, Retail Technology, Security Technology, Transportation Technology, and Virtual Reality here.
Blockchain Technology: 12 categories, 1007 companies, $6B in funding
Energy Technology: 12 categories, 790 companies, $63B in funding
Financial Technology: 16 categories, 2401 companies, $90B in funding
Health Technology: 22...
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.
This graph illustrates that the number of...
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.
We can see from the Logo Map above that Insurance Comparison/Marketplace is the largest insurtech category with 406 companies. This...
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.
This graph illustrates that...
Here is our Q4 2017 summary report on the Insurance Technology (insurtech) startup sector. The following report includes an overview, recent activity, and a category deep dive.
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.