Investors in insurance tech look beyond health insurance and beyond the US market as deal activity hits a multi-year quarterly high in Q4'15.

In 2014, insurance tech startups raised just over $740M in venture and equity funding. Just a year later, funding to insurance tech companies rose over 3.5x to hit $2.65B in annual funding, according to CB Insights data.

Funding spiked in Q2’15 on the back of mega-rounds to online benefits software and health insurance brokerage Zenefits and online P&C insurance seller Zhong An. More importantly, year-over-year deal activity in the growing insurance tech space increased 45% and hit a multi-year quarterly high in Q4’15, which saw an average of 11 insurance tech startup financings per month.

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 insurance tech startups take smaller share of funding pie

US-based startups contributed just over half of all insurance tech funding in 2015, after taking over 80% of funding in 2014. US insurance tech deal activity hit a high in Q2’15, with financings in that quarter to companies including Oscar Health, SimplyInsured, Zenefits and Stride Health among others. Insurance tech deals in the US rose 35% year-over-year in 2015.



US insurance tech funding moves beyond healthcare

As we previously highlighted, insurance tech dealflow in the US has lately seen more activity in non-health insurance-related startups, including companies operating in the life and commercial insurance industries. 2015 saw health insurance startups take just 51% of all US insurance tech deals, compared with 70% in 2014.


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