The State of Insurance Technology in Ten Visuals
We cover many emerging markets in the startup ecosystem. We have previously shared a series of posts that summarized Financial Technology, Internet of Things, Bitcoin, Artificial Intelligence, and MarTech in six visuals. This week, we do the same with Insurance Technology, but with 10 visuals.
At this time, we are tracking 876 Insurance Technology companies across 13 categories, with a combined funding amount of $4.63 billion. To see all of our Insurance Tech related posts, check out our blog!
The ten Insurance Tech visuals below help make sense of this dynamic market:
- Market Overview: Breakdown of Insurance Tech into categories.
- Number of Companies Per Category: Bar graph summarizing the number of companies in each Insurance Tech category.
- Average Company Funding By Category: Bar graph summarizing the average company funding per Insurance Tech category.
- Venture Investing in Insurance Tech: Graph comparing total venture investing in Insurance Tech to the number of companies in each category.
- Global Breakdown of Insurance Tech: Heat map indicating where Insurance Tech companies exist.
- Median Age of Insurance Tech Categories: Bar graph of each Insurance Tech category by median age.
- Founding Date Distribution: Bar graph indicating the years in which Insurance Tech startups were founded.
- Funding by Vintage Year: Bar graph that indicates the level of funding in Insurance Tech startups by vintage year.
- Company Headcount Distribution: Bar graph distributing the number of Insurance Tech companies in different headcount ranges.
- Top Investors in Insurance Tech: Bar graph indicating which investors invest in Insurance Tech most frequently.
1. Insurance Technology Market Overview
Product Insurance — These companies offer insurance/warranties for products that you purchase, from tech gadgets to diamonds.
Auto Insurance — These companies offer car insurance, including car telematics products which detect your mileage and driving behavior to customize your insurance plan.
Health/Travel insurance — These companies offer health or travel insurance, either for individuals or for businesses.
Life, Home, Property & Casualty Insurance — These companies offer life, home, and property & casualty insurance, as well as other kinds of insurance such as renters, disability, and marriage insurance.
Enterprise Insurance — These companies offer insurance plans for businesses, startups, freelancers, etc.
Insurance Comparison/Marketplace — These companies serve as a marketplace for consumers to buy insurance of any kind (car to home to health), or compare different insurance providers. These are 3rd party companies that don’t offer insurance plans themselves, but act as a brokerage agent between insurance providers and consumers.
Reinsurance — These companies provide insurance for other insurance companies.
P2P Insurance — These companies offer peer-to-peer insurance, in which a group of policyholders jointly pay for the insurance of an item that they mutually own, share, or rent (a car, a house, media equipment, etc).
Insurance Data/Intelligence– These companies collect, process, and analyze data analytics and business intelligence for the insurance industry.
Insurance User Acquisition — These companies help insurance companies acquire and manage new leads and clients.
Insurance Infrastructure/Backend — These companies help insurance companies with their day-to-day operations, including CRM for agents and lawyers, communication tools, claim filing tools, etc.
Insurance Investors/Education — These companies are investment firms that specifically invest and incubate new insurance companies, as well as resources that give information about how insurance works
Consumer Insurance Management Platforms — These companies offer platforms that enable consumers to manage their insurance and claims, including mobile apps that allow them to file claims right at the spot of the car accident.
2. Number of Companies Per Category
The bar graph above summarizes the number of companies in each Insurance Tech category to show which are dominating the current market. Currently, the Insurance Comparison/Marketplace category is leading the way with a total of 137 companies, followed by Insurance Infrastructure/Backend with 108 companies.
3. Average Company Funding By Category
The bar graph above summarizes the average company funding per Insurance Tech category. The Product Insurance category leads the way with an average of $63M per funded company. The Product Insurance companies offer insurance/warranties for products that you purchase, from tech gadgets to diamonds.
4. Venture Investing in Insurance Technology
The graph above compares total venture investing in Insurance Tech categories to the number of companies in each category. While Health Insurance has the most funding at over $1.8B, it is Comparison/Marketplace and Infrastructure/Backend categories that have the most traction in total startups. It’ll be interesting to see if the funding in these categories grows in 2016.
5. Global Breakdown of Insurance Technology
The following infographic is an updated heat map indicating where Insurance Tech startups exist across 47 countries. Currently, the United States is leading the way with 310 companies. The United Kingdom is in second with 40 companies followed by India with 18.
6. Median Age of Insurance Tech Categories
The bar graph above summarizes Insurance Tech by median age of each category. The Life & Home Insurance category is the most mature category at a median age of 18 years, while P2P Insurance is the most emerging category with a median age of 1 year.
7. Founding Date Distribution
The bar graph above shows the distribution of years in which Insurance Tech startups were founded. Over 50% of Insurance Tech startups were founded after 2011, while only 15% of the companies were founded before 2000.
8. Funding By Vintage Year
The bar graph above shows the level of funding in Insurance Tech by vintage year. Insurance Tech startups founded from 2013-Present have received $1.5 billion in funding.
9. Insurance Tech Company Headcount Distribution
The bar graph above shows the distribution of employee headcount among Insurance Tech startups. 44% of Insurance Tech companies are startups with fewer than 10 employees, indicating that this is in the early stages of innovation.
10. Top Investors in Insurance Technology
The graph above summarizes which investors invest in Insurance Tech most frequently. Currently, 500 Startups leads the way with 6 investments, followed by Y Combinator and First Round with 5 investments each.
As Insurance Technology continues to develop, so too will its moving parts. We hope this post provides some big picture clarity on this booming industry.
Venture Scanner enables corporations to research, identify, and connect with the most innovative technologies and companies. We do this through a unique combination of our data, technology, and expert analysts. If you have any questions, reach out to [email protected].