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.

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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.

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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%.

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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.

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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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