Since 2010, the number of companies that target the insurance tech space has risen by $2.12 billion and $1.39 billion of that has come just in the past year.
From tech-enabled health coverage and insurance tools for on-demand workers and use cases, the multi-trillion dollar insurance industry is the new epicenter for startups. If you haven’t been following what is going on with insurance tech startups, I have got the whole story for you.
There are more funded startups operating in health insurance than all of the other insurance types combined – 56 percent of all insurance tech startups actually. Let’s take a step back and think about why. The Affordable Care Act was signed into law back in 2010 – this created new opportunities for consumer health insurance providers. Health insurance tech companies like Oscar, Navera, Gravie, Stride Health and more have risen a great wealth in funding since last year. The other 44 percent of tech insurance companies are into auto insurance comparison engines, insured storage services for bitcoin and crop insurance tools.
From 2010 to now, the number of investors in the insurance tech ecosystem has also skyrocketed from less than 20 to over 300. New investors in the spaces include Founders Fund, Adreeessen Horowitz and even corporate venture capital investors like Mayo Clinic and BlueCross BlueShield Venture Partners.
You bet the big insurance providers are increasing their investments in private tech companies too. Just last year, the tech startup deal activity by insurance companies increased by 460 percent. There are target areas where insurance firms have focused on such as price comparison, parking, auto insurance and robo-advisors to name a few. Below, you can take a look at just how diverse the insurance tech startups are in our present market.
Even though it is a year away, many of the candidates for the 2016 United States presidency race want to abolish Obamacare. What impact, if any can you imagine this posing on the number of insurance tech startups that focus on health care? In a year, there could be another change in law that will make another industry more important than health. Will the legalization of cannabis in the treatment of medical ailments continue to develop in a way that will make an impact? Regardless, the numbers are certainly surprising when you stop and take a look; I hope that I opened your eyes to something new.