Every season has a hip new fintech vertical, it seems. I’m sure this will only continue in the months and years to come. Indeed “insurtech”, just like “fintech” has really been around for quite some time (think eSurance), which was founded back in 1999, when the FintekNews team lived in San Francisco and watched the internet ande-commerce be birthed, reach bubble phase and then burst, all before our very eyes.
The difference is that the new insurtechs have interesting micro-categories and can live on an app on your phone, and indeed, they are giving the big insurance firms a run for their money with the millennial set.
According to this piece in Forbes, New York is emerging as the epicenter of this growing new industry. We’ll be watching for more to come in this category.
“Silicon Valley for decades has been known as the startup hotspot, but in recent years other cities have emerged as viable alternatives. Destinations previously regarded as being less attractive have surged across the nation, from Seattle to Boston, driving innovation and investment in a diverse set of tech companies ranging from biotech to finance industries.
New York City, in particular, has differentiated itself as the new capital of insurance technology (aka insurtech), playing home to disruptive players in the property, casualty, health, auto, pet, SMB, disability, and life insurance verticals. This is driven, in large part, by the city being home to a significant number of Fortune 500 insurance players, such as AIG, Metlife, Marsh, Chubb/ACE, New York Life, Assurant, and Travelers among others. Proximity to these large financial services firms offers startups greater opportunity to develop partnerships or bring in talented individuals with industry experience.
Oscar is a perfect example of a New York insurtech startup made good. Oscar, based in the heart of NYC, is attempting to disrupt health insurance. Founded in 2012, Oscar is an online platform that allows individuals (and now businesses) to get health insurance quickly and easily. The company initially offered plans only in New York, but has recently expanded to three additional states. In 2016, Oscar was valued at $2.7 billion….”
Full Story at Forbes.com