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.
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.
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.
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.
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.
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.
|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 $1.65B in aggregate funding. 18 of the 20 are focused on the selling of P&C insurance policies vs. selling into the P&C insurance industry.
|Company||Focus Area||Round||Date||Amount ($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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