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After enjoying three hundred years of uninterrupted business-as-usual, the vast insurance market is being disrupted by tech-forward startups from every possible angle, making more of the same a definite thing of the past.
With non-traditional, timely, and market-responsive digital insurance products now easily finding their way to the dissatisfied or distrusting enrollees of legacy institutions, competition has intensified even beyond the imagination of earliest disruptors or investors.
Across the various insurance market segments, entrepreneurial zest powered by investment is bringing rapid transformation and disruption to the entire industry. Consumer demand is the biggest driver of this trend, transforming core business models, value formation and key capabilities for all companies involved.
Join us as we explore the top 5 game-changing InsurTech startups who, in our view, will not only sustain, but push the new trend further, eventually disrupting all insurance verticals.
After three hundred years the insurance market is finally being disrupted – in every possible way. Click To TweetBlockchain Based Asset Protection by Everledger
They call themselves “the digital vault of the future,” and it’s hard to disagree. Founded in 2015, Everledger relies on the most cutting-edge technology to prevent jewelry fraud – a type of fraud that costs insurers a colossal $2 billion annually. By using blockchain technology, smart contracts and machine vision, Everledger has been able to create a unique and unchangeable profile for precious goods, thwarting fraudulent claims.
Having digitized more than 1.6 million diamonds, Everledger aims to bring trust back to global marketplace thanks to the integration of technology in the world of insurance. With plans to expand to other markets, this London-based startup already offers its services to Singapore Diamond Investment Exchange and tech giants such as the U.S.-based SAP.
Auto Insurance That Goes the Extra Mile (When Drivers Don’t)
The San Francisco-based startup Metromile provides per-mile auto insurance to those who drive less than 5,000 miles a year. The unique pricing model is an excellent offering for those low-mileage drivers living in public transport-oriented metropolises, congested megacities, young drivers, or anyone else who simply doesn’t need unlimited mileage auto insurance.
Using Metromile Pulse, a small wireless device, the company measures the mileage count of its customers – a simple solution to potential claims disputes. It also offers a driving app that makes everything from finding your parked car to keeping your car healthy super easy, showcasing the expansion possibility InsurTech companies can have.
Currently only available in 7 U.S. states, Metromile plans to expand their coverage and quickly cement their name as a market disruptor for low-mileage drivers. With $191.5 million in funding (2016), we believe Metromile will disrupt the auto insurance industry faster than you can drive 5,000 miles.
Bringing InsurTech to Healthcare
With an unbelievable $400million in growth funding (2016), Oscar Health is en-route to disrupting the health insurance market and being part of the global HealthTech revolution that is taking place.
The idea behind this disruptive New York-based startup is to offer quick advice and medicine search to Americans who don’t have private insurance through their employers. Oscar provides individual plans and personal attention on a friendly mobile app and website. The simplicity of their solution and the market demand for understandable and efficient healthcare made them a quick market disruptor.
Property Protection with Trov
UK-based Trov offers completely flexible, modular, on-demand insurance solutions for protecting personal property.
The user experience is radically unique in the traditionally unchanged insurance world. With Trov, policies can be started, paused or stopped anytime, claims can be processed via smartphone in minutes and disputes can even be managed via real-time chat.
Currently operating in the UK and Australia, the company aims to expand into the U.S. and Japan. Trov has already been approved to operate in 31 U.S. states, including California.
Beyond geographical aspirations, Trov also intends to offer pay-per-mile auto insurance, eyeing Metromile’s market and raising the competition within the automotive focused InsureTech startups.
With $91million in funding, Trov is in a good place to meet and even exceed its stated goals (and give Metromile a run for their market share).
The One You Can’t List Without: Lemonade
Lemonade is arguably the most talked about InsurTech company to date – and for good reason. The insurance company that acts like a SaaS company broke into the insurance market with an extremely user-friendly UX & UI, and impossibly fast claims processing thanks to machine learning and a so-called charming chatbot.
Today, Lemonade offers the most advanced P2P insurance model to more than 14,315 people (as of June 2017) who took a chance on the insurance company to give them lemonade when life gave them lemons.
Taking another brave new step to shake up the industry, the New York-based startup has recently eliminated deductibles – a much disliked requisite in traditional policies.
With such radically disruptive ideas, millions of dollars in funding, and one world-renowned behavioral economics guru as the company Chief Behavioral Officer (Dan Ariely), we’re confident we’ll be talking about Lemonade for many years to come.
The Future of InsurTech
The insurance industry is in dire need of disruption after so many years of lengthy, complicated processes.
Investors and startups alike are recognizing this, and more new entrants are likely to join the InsurTech scene.
The key takeaway remains the same across all market segments – centuries-long distortion in supply and demand is finally being corrected and the disruption in InsurTech is eminent.
The downside? It’s happening too fast – some innovations might prove to be short-term fixes that will fade fast, while others, like those of the five companies above, are likely to remain.
Some InsurTech innovations are fast fixes that will fade. Others are in it for the long run. Click To TweetFor background info on how the insurance industry is changing, read Near Disruption: Why You Should Care About InsurTech
