The insurtech industry, much like fintech and a swathe of other emerging sectors, has been devoid of funding in the second half of 2023, ushering in an era of consolidation.
While this may be easier for more entrenched insurtech companies, newer companies in need of funding have found it harder to raise the capital required.
In this Top 10, we look at the insurtechs bucking the trend by continuing to scale at pace. Whether an established insurtech consolidating its position or a new player securing scarcely available funds, these companies continue to chart a course for continued growth in 2023.
FairStreet operates a platform enabling independent Medicare agents to make informed decisions tailored to elderly medical patients. Based in San Fransisco, the health insurtech is helping address the critical health needs of retired US citizens. Achieving a significant 533% search rate growth over the past five years, FairStreet supports Medicare agents with its custom CRM and marketing tools, helping professionals get more referrals.
Chicago-based ClearCover is an insurtech specialising in rapid claims settlement for automotive claims. Its API-first approach helps consumers easily pay for claims while offering simple policy management through one integrated app. Founded in 2016, ClearCover has grown 161% (search growth) over the last five years, supported by US$304.5m in funding. The firm has continued to scale at pace since it generated its most significant investment of US$200m in 2021, charting a course for growth amid difficult macroeconomic conditions.
AKKO is the insurance provider for modern devices, particularly smartphones. Operating a digital-first smartphone protection policy, AKKO is a leader in the space, even outranking the likes of AppleCare and Geek Squad as per Gadget Review. Raising just US$14.8m since its founding, AKKO has managed to achieve a 173% search growth rate over the past five years by leveraging a superior product. With products for laptops, electronics and other personal items, AKKO offers comprehensive coverage to its growing customer base.
Indian insurtech RenewBuy was founded by Indraneel Chatterjee and Balachander Sekha in 2015. Generating US$132.7m in total funding, the company raised its latest US$40m in July this year, bucking an industry-wide trend of less investment. A technologically enabled, industry-focused insurance and financial products consulting firm, RenewBuy employs peer-level consultants who serve as an extension of the firm’s financial and insurance needs to proactively elevate customers’ experience, simplify processes, and increase accessibility.
One of Canada’s fastest-growing insurtechs, Wisedocs is an AI-powered automation platform that processes and understands medical documents in real time. Generating CA$4.2m (US3.1m) in seed funding in 2022, the insurtech has grown in stature, helping more insurance organisations evaluate medical claims faster and more accurately. Wisedocs’ platform enables insurers to automatically sort, index and review unstructured medical documents, speeding up medical claims evaluation and increasing accuracy. Wisedocs clients can benefit from an 85% time reduction and a 55% cost reduction in document reviews.
Another of San Francisco’s emerging insurtechs, Ethos Life offers whole and term life insurance policies digitally, without the need for an agent. Founded in 2016, the insurtech has raised US$414m in total funding, with US$300m generated in 2021 alone. The company has used this investment to consolidate its position today, and, over the past five years, it has achieved a 222% search rate growth. With a focus on ethical life insurance, Ethos Life is on a mission to protect families by streamlining the life insurance process, making it more accessible and convenient.
Founded in 2014, Shift Technology is a French insurtech dedicated to utilising AI solutions to eliminate fraud. Offering a suite of services for health, P&C, life, worker’s compensation and travel insurance, the insurtech has raised a total of US$540m in funding, and seen search rates grow 122% over the past five years. With a team of insurance-focused data scientists, customer advisors and project managers, Shift Technology has managed to establish a far-reaching presence globally, with offices located in Paris (HQ), London, Tokyo, São Paulo, Toronto and more.
Established insurtech Kin Insurance is still one of the fastest-growing today, with search rate growth over the past five years hitting 413% alongside continuous funding which today totals US$443.2m. Based in Chicago, Kin has already built up a workforce of more than 450 people as it attempts to reimagine home insurance for a rapidly changing world. This includes the effect of freak weather, one of the main challenges faced by US property insurers. Kin’s technology allows it to provide affordable pricing without compromising coverage, even in areas most impacted by climate change.
In second place on our list of Top 10 growing insurtechs of 2023 is Zego. Operating a pay-as-you-go model, the UK insurtech is a leading provider of insurance for fleet managers, couriers, and food delivery drivers. Launched in 2016 and headed up by its dynamic CEO Sten Saar, Zego insures more than 200,000 vehicles for businesses spanning nine countries and has collaborative partnerships with FreeNow, Uber, and Bolt. Featured on FT1000 as one of Europe’s fastest-growing companies, Zego has seen search rates rise a marked 633% over the past five years, and it has consolidated its position by smartly deploying US$281.7m in total funding.
Top of our list is insurtech Marshmellow, which continues its meteoric rise to this day. With search rates growing 791% over the past five years, the insurtech is arguably the biggest in Europe today. UK-based, the motor insurance provider has recently seen its valuation hit US$1bn, making it one of the UK’s first British black-owned unicorns. Starting as a provider of affordable car insurance for UK ex-pats, the company has since evolved into a digital-only insurer that uses machine learning technology to issue insurance. The company says its pricing algorithms are designed to provide affordable coverage for those disadvantaged by traditional providers, such as young male drivers and UK residents on temporary visas.
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