Insurance across the globe is slowly picking up – with industries growing in both the developed and developing regions. Amongst the developed, one country that stands out is the US – with impressive growth in the past year. It has been observed that sustained economic growth, rising interest rates, and higher investment income have helped the US insurance industry remain amongst the top-ranked globally. Moreover, property and casualty sector is one of the top segments and has seen a 12.7% rise in the first half of 2018.
Though traditional insurance companies will remain the front runners due to regulations and capital required for an insurance license, partnerships with InsurTech startups will allow them to tackle newer business models such as microinsurance and on-demand insurance.
InsurTech companies manage many niche segments of the market, ranging from operating as Distributors/Aggregators, API developers, HealthTech, Online First Insurance providers and IoT, amongst others. After presenting MEDICI Top 21 – InsurTech Awards, let us zoom in on some of these segments to spot the interesting disruptors that are changing the game in the US:
Aggregators & Distributors
‘Aggregators & distributors’ is considered the leading segment in the InsurTech market that facilitates the comparison of different insurance providers and also provides digital brokerage services. These also include a few personal insurance management apps.
- CoverHound, founded in 2010, is a technology company which offers a platform for consumers to shop for car insurance. The platform provides quotes and comparisons from property and casualty insurance carriers for personal and business needs. CoverHound has raised $112 million in total funding.
- PolicyGenius, founded in 2014, provides users with price comparison information on life insurance, long-term disability insurance, renters insurance, and pet insurance. PolicyGenius has raised $51.05 million in total funding.
- GoHealth, founded in 2001, is an online portal for finding health insurance coverages. It enables users to compare health insurance quotes and purchase them online. They also offer small-business insurance and self-employed insurance. GoHealth has raised $50 million in total funding.
HealthTech
HealthTech-focused startups mainly cater to insurance services related to medical products that use technology to streamline payments, provide insurances to customers in need, and work with doctors and hospitals.
- Oscar, founded in 2013, is a HealthTech unicorn company that uses technology, data, and design to offer health insurance products. It aims to redesign health insurance by taking a customer-centric approach. The company uses data to build predictive models to optimize the patient-doctor relationship and provide suitable health plans. The startup has raised $1.3 billion in total funding.
- Bright Health, founded in 2015, provides health insurance for individuals across the US. It offers digital health tools as well as health systems and economic rewards for practicing efficient, high-quality healthcare. It offers individual plans, family plans, and Medicare advantage plans. The startup has raised $440 million in total funding.
- Clover Health, founded in 2014, offers a health insurance plan focused on driving down costs and producing improved health outcomes. The company uses data analysis and preventative care to improve healthcare for seniors. The startup has raised $925 million in total funding.
Online First Insurance
These companies offer insurance products online and connect distributors to insurers. They cater to customers ranging from individual consumers, SMEs, and even businesses in targeted industries.
- Lemonade, founded in 2015, offers policies for property and casualty insurance. The P2P insurance platform leverages artificial intelligence and behavioral economics to offer home, condo, and renters insurance for residents of California, New York, and Illinois. It allows users to interact with a chatbot that provides information about their coverage needs, location, and property details. The startup has raised $480 million in total funding.
- Next Insurance, founded in 2016, is an online insurance platform for SMEs and entrepreneurs to secure and grow their businesses. It offers services across industries such as construction, beauty, cleaning, fitness, entertainment, and more. Its plans not only include business & professional liability insurance but also commercial auto and workers’ compensation insurance. The startup has raised $131 million in total funding.
- Hippo, founded in 2015, is an online platform which provides home insurance products. It aims to reimagine homeowners insurance with a customer-centric model by leveraging big data, such as municipal building records, and innovative technology. It provides smart technology home devices as well to ensure safety. The startup has raised $209 million in total funding.
IoT
These companies provide insurance companies with the ability to reduce premiums. They are driving a new era of digital disruption of the insurance markets.
- American Well, founded in 2006, is a web and mobile platform that connects patients and doctors through video, secure chats, and text messages. It aims to improve access to quality healthcare and make it more affordable and transparent for consumers. The startup has raised $365.4 million in total funding.
- Metromile, founded in 2011, provides pay-per-mile car insurance. The startup has created a device that captures mileage data to determine how much a person should pay for their car insurance policy. The free plug-in device turns ordinary cars into smart cars. The device works with Metromile’s smartphone app (Metronome), which diagnoses the health of the vehicle, keeps track of its location, and offers tips to help the user with their daily commute. The startup has raised $296 million in total funding.
- Root Insurance, founded in 2015, offers liability coverage for bodily injury & property damages; non-liability coverages for collisions as well as comprehensive coverages & medical payments; personal injury protection; uninsured/underinsured motorist bodily injuries; uninsured motorist property damages; rentals; and roadside assistance. The startup has raised $177 million in total funding.
API/White Label
These InsurTech platforms use APIs and white-label technologies to provide solutions by evaluating data, using algorithms, and interpreting customer behavior to match the most suitable products. It also helps in providing insurer flexibility and share services & information with third parties to improve customer experience.
- Outsystems, founded in 2001, offers a software platform for enterprises that enables them to visually develop their entire application, integrate it with an existing system, and add their custom code whenever required. It also offers a tool to monitor the performance of apps once they are in production. The startup has raised $422 million in total funding.
- Gusto, founded in 2011, provides cloud-based payroll, benefits, and workers’ compensation solutions through automation, ease-of-use, and expert service. The company uses its payroll data that algorithms measure to create insurance plans suited for employees and businesses. The startup has raised $516 billion in total funding.
CareCloud, founded in 2009, offers cloud-based health information technology software and services. It helps with claiming submissions, patient billing, patient scheduling, insurance verification, task management, real-time patient flows, clinical summaries, rapid charting, and collective IQ. The startup has raised $150 million in total funding.
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