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12 Insurtech Companies to Watch in 2022

8 min read

The pandemic introduced many challenges to most (if not all) industries – especially those who formerly relied on in-person communications.

For the insurance sector, the sudden, dramatic and essential shift towards digital operations made it difficult for some providers to keep up.

Additionally, with Covid-19 bringing about a deeper awareness regarding health and mortality meant that the insurance industry was busier than ever.

In-person interactions that were once central to the sector’s operations had to be replaced by digital alternatives such as online billing, app-based claims, and other virtual tech replacements to keep the wheels turning.

Not only did the pandemic create in-person barriers regarding insurance services, but the antiquated systems that traditional providers operate within have become tiresome.

Unclear eligibility requirements, lengthy application processes and complicated coverage options now deter many digital-savvy consumers from going about insurance the traditional way.

Many long-standing, traditional insurance providers, such as Geico, State Farm, and Liberty Mutual, have increasingly adopted tech solutions to meet new consumer expectations, and it’s a strategy they can’t survive without.

Many tech-savvy insurance companies are disrupting the industry, leveraging big data and Artificial Intelligence (AI) and more, to offer enhanced consumer experiences at more affordable prices.

The power of insurtech

Insurtech is at the forefront of insurance industry progress, playing a vital role in transforming many aspects, including:

Heightened efficiencies – insurtech companies understand the importance of providing quick and easy information to consumers, allowing for 24/7 accessibility via apps and internet-based Artificial Intelligence (AI) tools, such as chatbots.

Enhanced customer experience – by providing a convenient, no-fuss, yet personalized service, customers feel more engaged and satisfied with the service they receive.

Improved flexibility – due to a reduction in overheads, sophisticated technologies and far simpler operational processes, insurtechs can offer much more flexibility in the products, be it broader term options, customizable products, and more.

Enhanced personalization – thanks to the variety of new, smart tools and software available, insurers are able to run data far more productively, taking situational and historical data to provide a more personalized service – one that can often improve pricing as well as reliability.

Reduced operating costs – without the need for a physical business premise, operating costs can be significantly reduced.

In addition, businesses that can operate remotely can enjoy a far greater reach, and the potentiality to serve customers worldwide

Interested in Insurtech?

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Innovations that drive insurtech

Technological advancements are coming in thick and fast, and have been for some time now.

Ever-increasing improvements continue to broaden the scope of what businesses can offer and how efficiently and effectively they can do so. Some of the tech innovations driving insurtechs include:

Internet of Things (IoT)

The Internet of Things (IoT) refers to smart interactions between software and physical objects.

For insurtech, a prime example is the advent of a device that can monitor an insured party’s driving habits to inform them of appropriate premiums, and alter them in response to positive or negative driving behaviors.

Automation

Automation of processes makes them faster and free of the complications that can arise from human error. The more that repetitive tasks are automated, the greater the overall efficiency.

Artificial Intelligence (AI)

Artificial Intelligence (AI) technologies allow tasks that were previously achieved via human interaction to become entirely tech-based. Customers having interactive discussions online with a chatbot is a prime example.

Machine Learning

One aspect of AI tech is machine learning.

This technology extracts historical data and can use it intelligently to create predictive models – from there, the cycle continues, with ongoing feedback leading to further ‘learning’ that works to continually improve the accuracy of the data analysis.

Big data

Big data is the fast collection and analysis of a colossal amount of data to arrive at far more informed conclusions.

Big data allows providers to accurately assess a customer’s risk profile, as well as to create large scale prediction models to inform a multitude of business decisions.

Blockchain

Blockchain is synonymous with cryptocurrency, but at its core, blockchain is a technology that can help keep any industry’s data secure, and make transactional processes safer and more efficient than ever.

Many industries are turning to innovative technologies like these to dramatically improve their business efficiencies and meet the ever-evolving consumer expectations that this digital age is driving forward. Here are 12 insurtech companies to watch in 2022:

1. Lemonade

Founded: 2015

Headquarters: New York, NY

Lemonade was founded by Shai Wininger (co-founder of Fiverr), and Daniel Schreiber (former president of Powermat) in 2015, and is now the No.1 US insurance company as ranked by Google Play, the App Store, Clearsurance and Supermoney.

Instead of your insurance provider pocketing your premiums, Lemonade is a P2P (peer-to-peer) organization that retains a flat fee of 20% from premiums and channels the rest back into insuring its customers.

Lemonade positions itself as a socially responsible insurtech service, encouraging claimants to donate any surplus claim funds to their charity of choice.

2. Clover Health

Founded: 2014

Headquarters: Jersey City, NJ

Clover Health was founded in 2014 by Vivek Garipalli (founder of CarePoint health).

Working in conjunction with Medicaid, Clover Health is known for its easy-to-understand healthcare plans, as well as its affordability. It is particularly popular with older consumers.

The provider offers Medicare Advantage insurance plans, and directly contracts in conjunction with the US government.

The provider’s second quarter total revenue was recently announced at $846.7million – a significant increase from 2021 Q2 revenue of $412.5 million.

3. Policygenius

Founded: 2014

Headquarters: New York, NY

Policygenius is known for its user-friendly marketplace platform, making insurance shopping a far simpler process than it once was.

The provider offers insurance cover for life and disability, through to automotive and pet insurance – this insurtech is a great solution for easy coverage all in one place.

The company was recently awarded a Bronze Stevie Award in the Front-Line Customer Service Team of the Year – Financial Services Industries category.

4. Kin Insurance

Founded: 2016

Headquarters: Chicago, IL

Kin Insurance was founded in 2016 by Chicago-based financial tech entrepreneurs, Lucas Ward and Sean Harper.

The home insurance tech company provides affordable coverage to residential homeowners in regions prone to natural catastrophes, such as California and Florida.

Kin Insurance has become known as an industry disrupter, transforming the home and contents insurance sector by leveraging advanced analytics to offer flexible, personalized and affordable products.

5. Metromile

Founded: 2011

Headquarters: San Francisco, CA

Metromile was founded in California in 2011 by Steve Pretre and David Friedberg and was one of the very first Usage-Based Insurance (UBI) and telematics insurance companies to corner the market.

This digital insurance provider is an industry leader in pioneering new approaches and innovative technologies to improve UBI services, simplifying the auto insurance process and providing fuel and mileage tracking to assist customers in monitoring their own energy usage.

In 2021, Insurance giant Lemonade acquired Metromile for $145,000, sadly laying 60 of its employees off just hours after the deal was done.

6. Bright Health

Founded: 2016

Headquarters: Minneapolis, MN

Founded in 2016 by Bob Sheehy (former CEO of UnitedHealthcare) alongside partners Tom Valdivia and Flare Capital Partners (seed investors), Bright Heath has quickly earned a reputation for creating cost-effective products.

Additionally, it is known for providing quick, efficient service thanks to the AI and automation technologies that underpin its underwriting and claims processes.

The digital-based platform focuses on health insurance, connecting consumers with brokers to minimize barriers to entry.

Bright Health has also gained many loyal customers due to the unique benefits they provide, such as a telehealth service that has achieved soaring adoption rates and excellent reviews.

The company recently disclosed that it suffered almost $1.2 billion in losses in 2021, but has tightened its relationship with mega-investor Cigna, and has announced its strategy for recovery.

This insurtech company is huge, and we surely haven’t seen the last of it yet.

7. Hippo

Founded: 2015

Headquarters: Palo Alto, CA

Hippo was founded in 2015 by serial entrepreneurs Eyal Navon and Assaf Wand, and is backed by venture capitalists such as GGV Capital and Horizon Ventures.

Other high profile investors such as Matt Humphfry (CEO and co-founder of LendingHome) and Pete Flint (CEO and co-founder of Trulia) are also onboard.

Hippo leverages the power of cutting-edge IoT (Internet of Things) technologies, providing US homeowners with affordable, flexible coverage.

8. Circulo Health

Founded: 2020

Headquarters: Columbus, OH

Co-founded by Sean Lane (Olive CEO), Circulo is a Medicaid managed health care company that entered the highly competitive market of insurtech in 2021, with plans to create a platform that provides improved member experience and care delivery.

The company’s innovative approach includes working with independent living facilities, primary health care and insurance plans.

By leveraging the power of human-centric technology and AI, Circulo provides secure online connections between patients and providers, removing barriers to proper healthcare for customers relying on Medicaid.

9. Clearcover

Founded: 2016

Headquarters: Chicago, IL

Clearcover is an innovative, digital car insurance provider with a reputation for selling cost effective coverage.

The company was founded in 2016 by former American Family Insurance employees Derek Brigham and Kyle Nakatsuji, with a vision for using technology to better serve insurance customers and offer lower prices.

Clearcover’s API-driven platform allows customers to access a centralized mobile app from which they can track billing, view policy information and file claims.

The company was recently named the Best Place to Work by Glassdoor 2021. Its mobile platform is one of the highest rated super apps available via Google Play and the Apple App Store.

10. NEXT Insurance

Founded: 2016

Headquarters: Palo Alto, CA

Next Insurance was co- founded in 2015 by Guy Goldstein (formerly CEO and founder of Pageone). This insurtech was one of the first of its kind to offer products and service to business customers.

Next Insurance provides products and services to enterprise clients across a broad range of industries, such as retail and construction.

The cover available via their digital platform focuses on SME (Small and Medium-sized Enterprises) cover, including workers’ compensation, liability insurance, and equipment cover.

In July 2022, the CEO announced his regrettable plans to reduce the firm’s workforce by 17% in an effort to ‘adapt to the worsening macroeconomic environment and to secure the long term vision of the company.’

Sometimes difficult business decisions need to be made to protect and grow in the long term – watch this space.

11. Oscar Insurance

Founded: 2013

Headquarters: New York, NY

Oscar Insurance was co-founded by serial entrepreneurs, Mario Schlosser (current CEO), Joshua Kushner (brother of Jared Kushner, senior Trump advisor) and Kevin Nazemi (no longer with the firm).

The first health insurance provider to be built around a ‘full stack technology platform,’ Oscar Insurance believes that every American deserves accessible, high-quality and affordable health care.

This industry disruptor went public in March 2021, and after having to withdraw from Colorado and Arkansas due to regulatory and commercial issues, it is targeting profitability for 2023.

12. Amwell

Founded: 2014

Headquarters: Boston, MA

Formerly known as American Well, this telehealth platform connects patients, providers and insurers, enabling them to deliver greater access to high-quality, affordable health care.

Founded in 2006 by brothers Roy and Ido Schoenberg, Amwell’s mission is to leverage leading telehealth technology to connect and enable providers, patients, insurers and innovators to deliver/access higher-quality, more affordable care.

The platform powers telehealth for a range of major hospitals, pharmaceutical and retail companies, insurance providers and doctor’s offices.

Last year the telehealth giant acknowledged that it had suffered significant losses in 2020 due to going public, but that it was back on track to become profitable.

Finger Robot touch on virtual screen of insurance technology, health family car money travel, Insurtech concept to use AI for customer analysis, customize service. Future insurance industry growing

InsurTech Drives Innovation and Disruption

Insurtech is a highly competitive market, and many companies are finding it increasingly difficult to significantly disrupt the market.

That said, as we largely leave the worries of the pandemic behind us, many of these insurance tech giants are fighting hard and positioned well to continue going from strength to strength.

The world as we know it was already changing rapidly, but Covid-19 forced digital adoptions at astonishing rates, and the insurance industry is experiencing colossal changes.

Traditional providers will have no choice but to implement a wide range of high-tech solutions if they are to stand a long-term chance against these digital platforms.

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