You’re at a party. You get introduced to someone. You ask what they do. They say insurance. Then, la la la la la la la…….can’t hear you. You turn and go BUT the HOT venture capital person gives the insurance friend their card. Call me. YES, insurance is HOT. VCs are pouring money into new insurtech startups at a brisk pace. And, there is lots of innovation. Great insight. Next party. Be nice to insurance folks. They rock.
Most people hate shopping for insurance, and they don’t enjoy talking about it either. That’s probably why you’re unlikely to hear about the industry’s current transformation in conversation, even in startup circles.
But make no mistake, there are vast sums of venture dollars going into insurance deals. Investment has risen dramatically, with VCs betting that, in the coming years, we’ll see major shifts in both how we buy insurance and what types of items we insure with it.
So far this year, insurance-focused startups (excluding the Asian continent*) have raised more than $700 million, almost as much as they raised in all of 2016, which was itself an especially busy year for the space. Much of the funding boom comes from big insurers themselves, who are backing and leading more rounds for insurance startups, as well as companies in related areas like financial services…”