Changing the game of insurance … 135 start-ups seeking to shake-up the industry
March 25, 2016
The insurance sector is ripe for disruption by technologies, and in particular by start-ups who can focus and innovate in niche markets, and specific aspects of insurance. My friends at CB Insights have provided me with a fantastic map which illustrates how $3.5bn of investment is going into reinventing the insurance market:
The map focuses on 11 categories, as follows.
- Life/annuity: Private startups providing distribution of life insurance products including term life and annuities including Abaris and PolicyGenius
- Auto insurance (split into distribution, usage-based insurance/telematics, and claims): Startups ranging from aggregators including CoverHound and Goji to white label auto claims apps (Snapsheet) to per-mile managing general agents like Metromile.
- P2P insurance: Private peer-to-peer insurance and mutual-based startups include Lemonade, Guevara, Friendsurance, and others.
- Small business insurance: Private tech companies serving as commercial insurance brokers and managing general agents to SMBs include Insureon, Embroker, and Next Insurance.
- Insurance industry software/analytics/IaaS: Insurance-specific software across the value chain providers range from BI and data-warehousing startup Quantemplate to insurance fraud detection firm Shift Technology to re-insurance SaaS analytics startup Analyze Re to claims inspection startup Spex.
- Mobile insurance management: Startups focusing on allowing consumers to manage and purchase insurance policies via their mobile device including Knip and GetSafe.
- Product insurance: Companies insuring or tracking products — i.e. smartphones, laptops — for insurance applications.
- Renters/homeowners: Startups providing distribution of renter’s insurance and homeowner’s insurance as well as lease default insurance programs.
- Sharing economy: Startups working on new insurance products in coverage areas including short-term rental marketplaces and for sharing economy 1099 workers.
- Health insurance: Across new carriers like Oscar as well as healthcare insurance startups targeted at individuals (Stride Health) and employers (Zenefits).
- Pet insurance: Startups include Embrace Pet Insurance and Figo Pet Insurance.