Our snapshot of early-stage insurance tech investment shows that year-to-date funding in 2015 already tops investments in all of 2014 by 43%.

In May, Generali CEO Mario Greco warned that the insurance sector was “on the verge of a revolution.”

Because early-stage companies offer a sneak peek into where a market is going from a disruption and innovation perspective, we analyzed CB Insights data around how early-stage activity in the insurance tech market is trending. And according to the data, early-stage investment activity is booming, a signal that technological change is coming to the insurance industry.

Of note, funding to early-stage insurance tech startups (Seed/Series A) has topped over $350M this year through 10/22/15. That’s a 43% jump from all of 2014 and a 247% rise over 2013.

Early-stage deal count in 2015 year-to-date has also already topped 2014′s high.

Report: Understanding the Insurance Tech Landscape
This free report prepared for LendIt 2017 covers startup formation and VC interest, insurance startups and investment trends, and how incumbents are responding to disruption.


US takes 3 of 4 early-stage insurance tech deals

74% of early-stage deals to insurance tech startups since 2011 have gone to US-based startups. Germany and the UK topped all international markets for early-stage insurance tech activity over the period, but the latter took just 3% of overall early-stage deals. Rob Moffat of UK-based Balderton Capital has blogged on the relative dearth of entrepreneurs taking on digital insurance.



Within the US, California takes half of all early-stage insurance tech deal activity since 2011, including deals to Hixme, Stride Health, and SimplyInsured among many others, followed by New York at 17%. Massachusetts early-stage rounds out the top 3 at 6%.



Early-stage deal sizes bump up

The median round size across all early-stage insurance tech deals bumped up to $2.3M in 2014 from $1.1M in 2011. In 2015 year-to-date, the median early-stage insurance tech deal size has stood at $2.1M.


Which startups are receiving early-stage funding?

Below is a cross-section of currently early-stage insurance tech startups. Health benefits tech is most prominent area for early-stage deal activity in insurance tech, but early-stage deals have also gone to SaaS products for insurance fraud, as well as usage-based insurance sensor tech, and insurance data analytics.

Select Current Early-Stage Insurance Tech Startups
Company Description Total Funding ($M) Select Investors
 (Clover Health) Analytics-driven health insurance model for Medicare Advantage members  $                 100.0 First Round Capital, Athyrium Capital Management
one-inc-logo (One) Integrated software for property & casualty insurers  $                   16.7 AGI Partners, Camp One Ventures, H&Q Asia Pacific
(Healthcare.com) Search and comparison engine for personal health insurance plans  $                   15.6 Jeffrey Boyd, Robert Mylod Jr., Monster Venture Partners
 (Stride Health) Health insurance recommendation engine  $                   15.4 F-Prime Capital, New Enterprise Associates, Venrock, Kleiner Perkins Caufield & Byers, Mayo Clinic, Mohr Davidow Ventures
(Lumity) Data-driven health benefits platform for small business employers  $                   14.0 Social Capital, True Ventures, Rock Health
 (Hixme) Tech-enabled private benefits exchange  $                    11.2 Kleiner Perkins Caufield & Byers
 (Censio) Smartphone-only usage-based insurance platform  $                   10.0 Bain Capital Ventures, General Catalyst Partners, Lakestar
 (BeneStream) Software helping employers enroll workers in Medicaid  $                     9.6 BlueCross BlueShield Venture Partners, Sandbox Advantage Fund, Kapor Capital, Relativity Healthcare Partners
 (SimplyInsured) Health insurance marketplace for small businesses  $                     8.4 AltaIR.VC, Bessemer Venture Partners, Corazon Capital, Polaris Partners, Y Combinator, Starling Partners
 (Sherpaa Health) Virtual doctor and health insurance guide  $                     8.0 Draper Associates, Softbank Capital, O’Reilly AlphaTech Ventures, First Round Capital, Collaborative Fund, SV Angel
 (QuanTemplate) Business intelligence and data management software for insurance firms  $                     8.0 Allianz Digital Corporate Ventures, Anthemis Group, Route66 Ventures, Transamerica Ventures
 (PolicyGenius) Online insurance brokerage for life, pet, renters, and long-term disability insurance  $                     6.0 AXA Strategic Ventures, Karlin Ventures, Susa Ventures, Transamerica Ventures
 (Eligible) Eligibility and payment APIs for medical services  $                     4.8 Andreessen Horowitz, Rock Health, Deerfield Management, Y Combinator
 (Limelight Health) Mobile quoting platform for health insurance agencies  $                     3.3 AXA Strategic Ventures, MassMutual Ventures, Launchpad Digital Health
 (Shift Technology) SaaS designed to detect potential insurance fraud  $                     1.7 Iris Capital, Elaia Partners

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