A look at investment trends to startups distributing policies or providing software for property and casualty insurance including auto, homeowners, and cyber risk.

As startups invade various lines of property & casualty insurance including auto, homeowners, and cyber, investment deal activity to startups distributing P&C policies and/or offering software and services across the P&C insurance value chain has jumped by over 4X between 2013 and 2016 year-to-date, according to CB Insights data.

This year, P&C insurance tech deals have already nearly doubled compared to full-year 2015, with growth of 92%. Two of the last three quarters have seen 30+ deals, whereas before 2016 no quarter had surpassed the 16-deal mark.

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Overall funding trends

Since the start of 2012, P&C insurance tech startups have raised $2.34 billion across more than 220 deals through November 2016. This year, P&C insurance tech deals have nearly doubled, growing 92% over 2015′s total. Stripping out a $931M investment to China’s first fully-licensed online insurer Zhong An Insurance in 2015, funding to P&C insurance tech startups has risen 52% in 2016 YTD.

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On a quarterly basis, P&C insurance tech deals hit their highest point since 2012 in Q1’16, when startups in the category raised $264M across 39 deals. P&C insurance tech startup deal activity has hit 30+ deals in two of the three quarters in 2016 to date.

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Seed deal share hits five-year high in 2016 YTD

Almost 3/4ths of all deal activity in P&C insurance tech has taken place at the early-stage (Seed/Series A) in 2016 YTD, up from 2/3rds of activity in 2015. 55% of P&C insurance tech deal activity globally in 2016 YTD has gone to seed-stage startups. Series A activity has taken 17% of deals to P&C insurance tech startups.

Select companies that have raised early-stage funding in 2016 YTD include:

  • Jetty Insurance, a homeowners and renters insurance MGA expected to launch in early 2017, raised $4M in seed funding from Ribbit Capital, Graph Ventures, Red Swan Ventures, Social Capital, SV Angel and Box Group in January 2016.
  • CoverWallet, a digital commercial insurance management platform and brokerage, raised a $7.8M Series A from Union Square Ventures and Index Ventures in November 2016.
  • Root Insurance, a startup providing a mobile app taking accelerometer and smartphone sensor data to gauge user driving skills and offering auto insurance as a licensed carrier in Ohio, raised $10 in Series A and debt funding from Drive Capital and Silicon Valley Bank.
  • Cape Analytics, a startup providing structured aerial imagery data and analytics for property underwriting, raised $14M in Series A funding led by Formation 8.
  • RiskMatch, which offers a data-driven marketplace for commercial P&C insurance, raised $3M in seed funding from Lightbank, 8VC, and Wildcat Venture Partners.

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More than half of P&C insurance tech deals take place in the US

Geographically, we see that 57% of P&C insurance tech deals since 2012 have gone to US-based startups. Germany is a distant second, taking 8% of all P&C insurance tech deals over the period, and India rounds out the top 3 as a growing number of insurance aggregators including PolicyBazaar and Coverfox have accounted for 7% of deals.

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Active P&C insurance tech VCs

Among investors who have made multiple bets on tech startups enabling or distributing insurance in P&C insurance, 500 Startups has invested in the most startups with investments including Embroker, Indio, and Albert. 500 Startups has also had several P&C insurance startups graduate from its accelerator program including Trym, BrightPolicy, and Inzmo. Other investors in the top 5 include Route 66 Ventures, Ribbit Capital and NEA. XL Innovate is the only corporate venture capital investor in the top 5 most active firms.

Most Active P&C Insurance Tech Investors: 2012 – 2016 YTD
Rank VC Investor Select Companies
1 500 Startups Albert, Indio, Embroker, Claim Di, BetterView
2 Route 66 Ventures CoverHound, CompareAsia, Knip, Bunker
3 Ribbit Capital PolicyBazaar, ComparaOnline, Jetty, Next Insurance
3 XL Innovate Lemonade, Embroker, Slice Labs, Cape Analytics
5 New Enterprise Associates Metromile, Cyence, Indio

Largest P&C insurance tech deals: 2015 – 2016 YTD

Below are the 20 largest P&C insurance tech investment rounds since the start of 2015. The 20 deals comprised over $1.65B in aggregate funding. 18 of the 20 are focused on the selling of P&C insurance policies vs. selling into the P&C insurance industry.

Largest P&C Insurance Tech Deals: 2015 – 2016 YTD (11/30/2016)
Company Focus Area Round Date Amount ($M) Location
Zhong An Insurance Alternative Distribution Private Equity 6/11/2015 931 China
MetroMile Alternative Distribution Series D 2/16/2016 103.1 United States
Ins110.com Alternative Distribution Series A 1/19/2015 80 China
BankBazaar Alternative Distribution Series C 7/2/2015 60 India
MetroMile Alternative Distribution Corporate Minority 9/21/2016 50 United States
CompareAsiaGroup Alternative Distribution Series A 4/22/2015 40 Hong Kong
PolicyBazaar Alternative Distribution Series D 4/14/2015 40 India
Cyence Enabling Technology for Insurers Series A 9/8/2016 40 United States
CoverHound Alternative Distribution Series C 9/22/2015 33.3 United States
Huize Insurance Alternative Distribution Series B 3/22/2016 31 China
Insureon Alternative Distribution Growth Equity 10/21/2015 31 United States
Xishan Information Technology Alternative Distribution Series A 7/7/2015 29 China
FinanceFox Alternative Distribution Series A 9/21/2016 28 Germany
Trov Alternative Distribution Series C 4/26/2016 25.5 United States
CompareAsiaGroup Alternative Distribution Series B 11/14/2016 25 Hong Kong
EverQuote Alternative Distribution Series B 10/20/2016 23 United States
Samlino.dk Alternative Distribution Series A 8/30/2016 22.45 Denmark
Xishan Information Technology Alternative Distribution Series B 3/26/2016 20 China
Snapsheet Enabling Technology for Insurers Series C 10/14/2016 20 United States
Goji Alternative Distribution Series D 6/28/2016 18.9 United States

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