Insurance Tech Startups Raise $1.7B Across 173 Deals in 2016

By CB Insights

Two of every three insurance tech deals in 2016 took place at the early-stage.

Deal activity in the insurance tech space hit its highest annual total in 2016, according to CB Insights data.

In total, deals to insurance tech startups rose 42% on a year-over-year basis in 2016 to hit 173. Total funding to insurance startups in 2016 hit $1.69B, the second consecutive year investment dollars to the space topped $1B. Overall dollars to the space fell 37% YoY between 2015 and 2016, as two separate deals to online HR software firm Zenefits and Chinese online insurer Zhong An Insurance accounted for $1.43B in total funding.

Senior Analyst Matthew Wong will take a look at the latest investment and startup formation trends in insurance and the moves (re)insurers are making.


Early days

Of note, two of every three insurance tech deals in 2016 took place at the early-stage (Seed/Series A). On a year-over-year basis, early-stage insurance tech funding rose 56% to hit $508M in 2016. Early-stage insurance tech deals topped 100 in 2016 and rose 47% YoY.  Startups that raised seed or Series A funding in 2016 included Hippo Analytics, CoverWallet, Embroker, Ladder Life, Cape Analytics, Root Insurance, Shift Technology, League, and Estify among others.


Where deals went

Geographically, 59% of insurance tech deals in 2016 went to US-headquartered startups. Germany, the UK, and China all saw 5%+ of insurance tech deals over the twelve-month period.

Deal activity to insurance startups in 2016 was spread among a diverse set of countries from Switzerland to India to Australia, and the United Arab Emirates.


Looking for more insurance tech data and analytics? Sign up free for the CB Insights Venture Capital Database.

First appeared at CB Insights Blog