Insurtech companies are making waves in the industry, with six startups making it to Forbes’ Fintech 50 for 2023. These companies offer various approaches to the $1.4 trillion US insurance market, with At-Bay and Coalition leading the way in cybersecurity assurance for businesses. Kin Insurance is also making a name for itself by providing a digital-first approach to home insurance while forgoing traditional agents. Safe offers embedded insurance software and technology to help large companies manage their insurance operations, while Ensure is a digital insurance broker and comparison site that helps consumers find insurance from 20 different insurers. Next Insurance delivers industry-tailored small business insurance policies online, using AI to process claims in 10 minutes and offer 24/7 access to insurance certificates and claims support.
In a time where insurtech companies are facing tough competition as evidenced by the struggles of Fintech 50 alumni, Lemonade, Hippopotamus, and Root, these six insurtech companies continue to make strides in the industry. This shows that new and innovative approaches to traditional insurance products are gaining traction and resonating with consumers. Insurtech startups are making insurance more accessible and affordable, and may be the key to disrupting traditional insurance companies.
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Sean Harper, cofounder and CEO of Kin, a home insurer available in six states that reported $79 million in revenue in 2022.
Parental insurance; Tahreer Photography/Getty Images
From startups protecting against cyberattacks to a new home insurer aiming to keep costs down with a digital-first approach, six insurtech companies have made it to our Fintech 50.
ORn the past year, some insurtech companies faced an even tougher road than those of other beleaguered categories of fintech, as evidenced by the now public actions of Fintech 50 alumni Lemonade, Hippopotamus AND Root, which are down 75% to 99% from their peak. Yet six private insurtech companies did ours Fintech 50 for 2023, with each adopting their own new approach to bite a tiny chunk of the $1.4 trillion US insurance market.
IT insurance startup At-Bay made its Fintech 50 debut this year. Founded by a former Israeli military intelligence captain, it provides insurance and consulting services to mitigate security risks for small and medium-sized businesses. It achieved $79 million in revenue in 2022, up from $40 million the previous year. Its biggest competitor in cyber insurance Coalition he also made the Fintech 50 (his third consecutive year on our roll of honor). Coalition doubled its number of IT customers in 2022 to 60,000 as it refocused on its core business. (In January 2023, Coalition sold Attune, a small commercial insurance company it had acquired just 15 months earlier.)
Based in Chicago Kin Insurance it’s trying to do what Hippo intended to do for home insurance: take a digital approach to making a decades-old product cheaper and easier to use. One difference in Kin’s strategy is that he forgoes agents to keep costs as low as possible. It’s also expanding geographically at a slower pace: Kin is currently only available in six states, which keeps subscription and marketing costs low. Today, it has 105,000 policyholders and achieved $68 million in revenue in 2022, up from $30 million in 2021.
Based in Santa Monica Safe, which makes back-end software that helps large companies manage their insurance operations, also made its debut in this year’s Fintech 50. Its technology does everything from generating insurance policy documents to moving money between consumers and insurers so they can pay premiums. Toyota, Mastercard and Farmers Insurance are among its clients.
Here are the six insurance companies that made the Fintech 50 in 2023:
At-Bay
It provides cybersecurity assurance and consulting services to help small and medium-sized businesses mitigate security threats, ranging from data privacy breaches to financial fraud.
Clients range from professional and financial services firms to manufacturing companies and healthcare companies. At-Bay hit $380 million in annual gross premiums issued in 2022.
Headquarter: San Francisco, Calif.
Financing: $292 million from Lightspeed Venture Partners, Khosla Ventures, Hapri and others.
Latest rating: $1.35 billion.
Good faith: $79 million in revenue and 33,000 customers in 2022, up from $40 million and 13,000 a year prior.
Co-founders: CEO Rotem Iram, 43, a former Israeli military intelligence captain; risk manager Roman Itskovich, 40; Etai Hochmann, 36; Tilli Kalisky, 45 years old.
Coalition
Combine cybersecurity assurance with proactive monitoring tools to help businesses manage cyber risk. Backed by large insurers such as Allianz, Swiss Re and Lloyd’s of London, it provides up to $15 million of cyber insurance coverage in every US state. In January 2023, it sold Attune, a small business commercial insurance company it had acquired just 15 months earlier, in a move to focus more on cyber insurance.
Headquarter: San Francisco, Calif.
Financing: $770 million from Valor Equity Partners, Allianz X, T. Rowe Price and others.
Latest rating: $5 billion.
Good faith: At the end of 2022, it had 60,000 cyber insurance customers, up from 32,000 a year earlier.
Co-founders: CEO Joshua Motta, 39, a former CIA officer and investment banker for Goldman Sachs; John Hering, 40 years old.
Ensure
Digital insurance broker and comparison site that helps consumers find home, auto and life insurance from up to 20 different insurers. It also has an integrated white-label service for other companies that want to make money selling insurance digitally: Toyota and digital bank Chime are clients.
Headquarter: Cambridge, Mass.
Financing: $128 million from Motive Partners, Viola FinTech and Growth, MassMutual Ventures and others.
Latest rating: $600 million, according to PitchBook.
Good faith: Attracted 2.9 million new customers in 2022, up from 2.1 million in 2021.
Co-founders: CEO Snejina Zacharia, 46; her husband, the president of Kayak Giorgos Zacharia, 49; and chief product officer Tod Kiryazov, 38.
Kin insurance
Digitally sells home insurance policies in five states (Florida, Mississippi, Louisiana, Alabama and South Carolina), dispensing with insurance agents in an effort to keep costs and rates lower. The insurance company itself is structured as a policyholder-owned cooperative, with Kin taking 32% of premiums as a management fee. Reinsurance covers around 50% of the risk. It had 105,000 policyholders at the end of 2022, up from 62,000 a year earlier. It plans to expand into Texas, Virginia, New Jersey, North Carolina and Georgia over the next year.
Headquarter: Chicago, Illinois.
Financing: $242 million from QED Investors, Commerce Ventures, Flourish Ventures and others.
Latest rating: 875 million dollars.
Good faith: Increased revenue to $68 million in 2022, up from $30 million in 2021.
Co-founders: CEO Sean Harper, 42, who previously co-founded e-commerce startup FeeFighters, which Groupon acquired in 2012; CTO Lucas Ward, 40, former co-founder and CTO of fraud analytics startup Rippleshot.
Next insurance
Delivers industry-tailored small business insurance policies online (liability, auto, workers comp, etc.) using AI to process claims in 10 minutes and offer 24/7 access to insurance certificates and claims support. Companies like Intuit use Next Insurance’s white label service to offer commercial insurance to their customers. Gross revenue from written awards reached $809 million in 2022, up from $650 million in 2021.
Headquarter: Palo Alto, Calif.
Financing: $881 million from Capital G, Battery Ventures, Munich Re/ERGO and others.
Latest rating: $4 billion.
Good faith: 420,000 small business customers, up from 300,000 at the end of 2021.
Co-founders: CEO Guy Goldstein, 55, a former Israeli Air Force jet pilot who also co-founded Check, a personal finance and bill-paying app that Intuit acquired in 2014 for $360 million; CTO Nissim Tapiro, 53; chief growth officer Alon Huri, 46.
Safe
It provides embedded insurance software or back-end technology that helps large companies manage their insurance operations. Sure’s technology does everything from generating insurance policy documents to moving money between consumers and insurers so they can pay premiums. In March 2023, it launched a new feature that aims to streamline its return shipping protection offer, where, for a small fee, consumers can pay up front to get free returns.
Headquarter: Santa Monica, Calif.
Financing: $123 million from Declaration Partners, Kinnevik, WR Berkley Corporation and others.
Latest rating: 550 million dollars.
Good faith: It has 100 customers, including Farmers Insurance, Toyota and Mastercard.
Co-founders: CEO Wayne Slavin, 39, a serial entrepreneur who cofounded and sold a data backup service and worked on Barnes and Noble’s Nook e-reader; chief strategy officer Jarod Kolman, 46, cousin of Slavin, founder and president of a South African property management company.
MORE FROM FORBES
https://www.forbes.com/sites/jeffkauflin/2023/06/06/the-future-of-insurance-fintech-50-2023/
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