What does Insurtech mean?
Insurtech is a term that describes a broad range of technologies used in the insurance field. Just like fintech once revolutionized banking, insurtech is changing the game for insurance. Powered by the latest tech such as AI, machine learning, blockchain, and IoT, insurance is bringing innovative insurance products to the market.
As Insurtech AI Development Company, we see a huge leap our clients are making toward a more efficient, secure, and more than ever customer-oriented business model. The technology allows going from a conservative insurance company that operates a very narrow definition of consumers’ needs, to a cutting edge insurtech that goes hand in hand with the customers’ reality.
Over the past few years, insurtech companies have seen an increase in the adoption of their services. Given the current world context, innovative insurance is seeing a new massive surge. That’s why we have decided to take a closer look at the top 15 insurtech companies that are shaking things up for insurance and breathing new life into the culture of the insurance business.
Founded in 2012, Trov is among today’s digital insurance leaders. With its headquarters in San Francisco, Trov operates in 5 countries and has raised$114m of funding. Previously it offered its mobile insurance platform directly to consumers, but in 2019 the company switched to a B2B model. Powered by the AI tech, Trov offers its white-label insurtech platform for mobility, retail, rental, and finance. For example, one of Trov’s recent product launches was a personal auto & mobility insurance app designed to align with auto-owners’ needs.
China’s first online-only insurance company, ZhongAn, was created in 2013 by Ping An, Tencent, and Alibaba. Based in Shanghai, it has become the country’s largest insurtech business with a total market capitalization of HK$38.5 billion. ZhongAn offers insurtech products for such areas as consumer finance, lifestyle consumption, health, and travel. More than half of its users claim to have bought their first insurance policy at ZhongAn. The company aims to reshape insurance by applying Big Data analytics to maintain accurate product pricing, making the insurtech product desirable, and boosting the internet ecosystem.
Headquartered in New York City, Lemonade, is an insurtech company providing policies for home-owners and renters since 2015. The total funding amount counts at the moment $480m. As insurance tech, Lemonade leverages behavioral economics and Artificial Intelligence, chatbots, in particular, to process claims and underwrite policies. It strives to move away from paperwork and bureaucracy. For instance, a few years ago, Lemonade handled a claim in three seconds, setting a world record in the insurtech world. In addition to the technology focus, the business positions itself as insurtech driven by social good. A user can select a non-profit organization to receive funds from the unclaimed premiums when signing up for Lemonade.
With more than seven years on the market, Oscar is an insurtech company specializing in health insurance services for individuals and small businesses. The start-up was founded in New York City, but having raised $1.3 billion in funding and being supported by the innovative technology, today, Oscar operates in nine more US states. Like other insurtech companies, it aims to revolutionize insurance by addressing customers’ common pain points. Firstly, it allows connecting with the doctors through a mobile app anytime. Secondly, the app generates treatment plans based on the client data to fit the customer’s pocket.
Insurance start-up Neos, residing in London, was formed in 2016. It is working with smart-home insurance policies utilizing cutting edge insurance tech such as the Internet of Things. Neos infrastructure assumes installing cameras, smoke detectors, and various sensors integrating them with IoT devices at home. This tech allows alerting the home-owners about a potential fire, leak, break-in, or any other accidents that may be a cause for a home insurance claim. With £6m of investment, Neos has attracted a multinational insurance business to acquire a majority stake.
Quantemplate is a London-based insurtech established in 2013, working with insurance firms to help them transform digitally. Up-to-date, it counts $25.6m of funding and has entered a European FinTech Top50. Route 66 Ventures, Transamerica, and Allianz are among the business’ investors. Behind Quantemplate’s insurance tech are machine learning, big data analytics, and Artificial Intelligence. With these, the firm helps the insurance industry utilize its data to discover valuable insights to form data-driven strategies.
#7 Shift Technologies
Shift Technologies’ customers are insurance startups looking for protection from cyber-attacks and need assistance with fraud detection. The insurtech offers Software as a Service (SaaS) powered by AI, machine learning, and Big Data. As fraud networks in insurtech are becoming more intricate, ensuring enhanced security has become vital for insurance-providers. Having gained $25.6M of total funding, Shift Technologies have opened offices in Singapore, London, Zurich, Madrid, and Hong Kong.
Slice provides on-demand digital insurance services through its cloud-based engine. The insurtech offers its insurance products for such domains as travel & hospitality, mobility, housing, and health & protection. Slice uses AI, machine learning, and behavioral science to formulate insights relying on the customers’ data. Such a business model enables insurers to have a rapid evaluation and adoption of their new products. Created in 2015, it has raised $35.5m of investment and has offices in New York City, Cleveland, London, and Ottawa.
Snapsheet is a SaaS cloud-native platform that enables car insurers, and their clients to process mobile claims. A customer can take a pic of car damage and submit it to Snapsheet to accelerate the insurance adjustment cycle time. Founded in 2010 and headquartered in Chicago, it has received $66.6m of funding. The company uses data-driven tech to boost customer engagement and to improve claims processing. Snapsheet also supports repair facilities and related shop communication along the way.
Founded in 2011, Gusto offers a cloud-based solution that uses algorithms processing customers’ payroll data to create insurance plans best suited for an employee or a business. The firm works mainly with small- and medium-sized companies such as lawyers, doctors, boutiques, and start-ups, supplying them with payroll, medical insurance, 401(k) contributions, and employee benefits. With the total funding of $516m, Gusto has offices in San Francisco and Denver.
Focused on emerging markets, Bima is an insurtech company based in Stockholm. It seeks to stimulate financial inclusion in 13 countries across Asia, Africa, and Latin America. Bima’s funding has reached $170.6m with 26m of customers, more than half of which say to have accessed insurance services for the first time with Bima. The business has established exclusive partnership terms with the leading mobile operators developing a robust technology platform for their users.
Brolly is an insurtech start-up designed for renters and home-owners. It’s the first advisory app powered by Artificial Intelligence to provide its users with valuable insights on their home policies. Founded in 2015 in London, Brolly offers an online service for policies management, and serves as a platform to contact insurers. The insurtech firm can recommend optimal policies basing on the user’s data and also inform customers about the current insurance coverage state.
Goji is a Boston-based insurtech agency specializing in finding the car coverage policy at the best price. A user enters in a basic vehicle description and receives a list of potential plans to choose from. Extensive experience and a solid tech background allow the business to provide quick and personalized insurance coverage options to their clients. Though the comparison engine is pretty standard for insurtech companies, Goji has been a reliable leader since 2013, with total funding of $104.2m.
Thanks to the evolving technologies. London-native Hippo sets a new standard for a proactive insurtech product serving quite a few industries from home to auto insurance. Created in 2015 and with $209m of total capital, Hippo strives to simplify the process of getting a coverage along with implementing a new insurance approach. The insurer uses IoT devices to identify the smallest issues within a home to have them taken care of before they can become a big claim.
Metromile undoubtedly falls under the innovative insurtech product category. The start-up first emerged in 2011 with a head office in San Francisco, and today is one of the leading car insurance providers. Metromile leverages such tech as machine learning and data science to speed up claims processing and pay-out, making car insurance more straightforward and user-friendlier. The core features include monthly mileage summaries, sweeping street alerts, fuel trackers, 24/7 support etc. The app also tracks the car’s location, which helped users to find their vehicles when those had been stolen.
Insurtech is evolving as rapidly as never before, thanks to technological progress. AI insurance helps satisfy the needs of niche market consumers changing the industry’s reputation from conservative and inflexible to highly personalized and user-friendly.
If you are looking to convert your insurance business into insurance innovation and make the most of the tech advances, don’t hesitate to contact us. We are happy to apply our experience and expertise to your business’ benefit!