By Bill Rearden
In the February 2017 issue of Innovators & Entrepreneurs, I provided an update on the notable activity in the Insurance Technology space, commonly referred to as InsurTech, during the fourth quarter of 2016. While InsurTech is still in its infancy the growth in this space continues to accelerate. Capital inflows suggest that incumbents and venture capitalists expect a new insurance industry in the near future. Below are some highlights from the InsurTech space in 2017.
Funding Highlights
- Clover Health, a San Francisco health InsurTech startup raised $130 million in venture capital funding.
- Next Insurance, a Palo Alto insurance platform for small business, raised $29 million in funding to create customized policies for small businesses.
- One, Inc., a Rancho Cordova provider of cloud software and payment solutions for the insurance industry raised $15.5 million in funding.
- Carpe Data, a Santa Barbara startup that provides next generation data products to the insurance industry raised $6.6 million in Series A funding.
- Bunker, a San Francisco digital business insurance platform raised $6 million in Series A funding.
- Vericred, a New York City health care data services company raised $5.5 million in Series A funding.
Acquisition Highlights
- OneBeacon Insurance Group, a Bermuda startup was acquired for $1.7 billion by a Canadian property and casualty insurer Intact Financial Corp.
InsureTech Leader Board Highlights
- Oscar, a New York startup founded in 2012, valued at $727.5 million, is an internet health insurer that rewards users when they reach milestones.
- Zenefits, a San Francisco startup founded in 2013, valued at $584 million, is an employer insurance broker that offers free HR, payroll, and benefits management software to organizations of every size.
- Friendsurance, a Berlin startup founded in 2012, valued at $15 million, is a peer-to-peer (P2P) platform that rewards small groups of customers with cash back bonuses each year if their group remains claimless.
- Goji, a Boston startup founded in 2007, valued at $90 million, is an online comparison and purchasing platform for property and casualty insurance.
*Information is courtesy of Tracxn.
Bill Rearden, ASA, is co-founder and strategy consultant at Ironbound Consulting Group in New York City. He can be contacted at bill@ironbcg.com.