Whilst Insurance-Tech startups were not well represented during London Tech Week this month, there are actually plenty of technology innovators and disruptors that are targeting the insurance industry. Some are already positioned as unicorns or multi-billion dollar start-ups.
From segment specific digital offerings to Internet-of-Things enabled farm or disaster coverage and insured storage services for bitcoin... and now block chain, these companies are invading the insurance industry.
There is something happening for sure.
Between $2Bn and $3Bn of funds have been invested in insurance start-ups and over 290 different investors, including Andreessen Horowitz, BlueCross BlueShield Venture Partners and AXA Strategic Ventures are chasing after those ventures... to reframe current market propositions, challenge existing business models and make lots of money. The USA is the largest market for such ventures to date followed by India.
Where is the money going? The Health Insurance Sector and Digital Health mostly at present, but watch this space.
From policy-comparison engines to tech-enabled health coverage and insurance tools for on-demand workers, startups are invading the multi-trillion dollar insurance industry — and investors are chasing them. Companies targeting the insurance tech space raised $2.12B since 2010, a whopping $1.39B of which has come since the start of 2014, according to CB Insights data. 2015 is already the biggest year on record for insurance tech, as the chart below highlights, spurred by Zenefits’ huge $500M round.