Current State of the Top Insurtech Companies
The global insurtech market is growing at a stellar rate, led by the top insurtech companies in the world. The global insurtech market revenue was valued at USD 5.48 billion in 2019 and is expected to reach USD 10.14 billion by 2025, growing at a CAGR of 10.80% by 2025. What is insurtech? Insurtech refers to utilizing technology to squeeze out savings and efficiency from the current insurance industry model. Inspired by the term fintech, insurtech is a combination of the words “insurance” and “technology”. The rise of innovation has lead to the market growing and expanding at a stellar rate. The top insurtech company by total funding is Oscar Health — raising more than USD 1.5 billion in funding. The top 3 best insurance tech companies are then rounded out by Bright Health and Clover Health. This post will cover the top 10 insurtech companies in the world in 2020 measured by various factors including their total funding, quality of innovation, and reputation.
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Insurtech Market Statistics and Trends
- The global Insurtech Market revenue was valued at USD 5.48 billion in 2019 and is expected to reach USD 10.14 billion by 2025, growing at a CAGR of 10.80% by 2025.
- Under the property and casualty insurance industry, companies such as Lemonade and Zhong An holds the major share of the insurtech market.
- Overall investment in InsurTech start-ups increased from USD 0.3 billion in 2013 to US$2.2 billion in 2017 at a CAGR of 69.2%. The investment reached USD 2.7 billion at its peak in 2015.
- 46% of the market’s growth will originate from Europe during the forecast period. The UK and France are the key markets for InsurTech in Europe. Market growth in this region will be slower than the growth of the market in APAC.
Top 10 Insurtech Companies in the World 2020
What are the top insurtech companies in the world in 2020? This is the complete list of the 10 best insurance tech companies in 2020.
Total Funding (USD millions)
|1||Oscar Health||1,500||New York, United States|
|2||Gusto||516||San Francisco, California, United States|
|4||Bright Health||1,100||Minneapolis, Minnesota|
|5||Clover Health||925||San Francisco, California, United States|
|6||Root Insurance||528||Columbus, Ohio, United States|
|7||American Well||517||Boston, Massachusetts, United States|
|8||Lemonade||480||New York City, United States|
|9||OutSystems||422||Boston, Massachusetts, United States|
|10||Next Insurance||381||San Francisco, California, United States|
1. Oscar Health
Ranking number 1 on this list of the top insurtech companies in the world in 2020 is Oscar Health, a technology-driven health insurance company founded in 2012, and is headquartered in New York City. Oscar Health focuses on the health insurance industry through telemedicine, healthcare-focused technological interfaces, and transparent claims pricing systems which would make it easier for patients to navigate. Oscar Health surpassed USD 1.5 billion in private funding — making it one of the best insurtech companies in the world.
- Founded: 2012
- Oscar Health Headquarters: New York, United States
- Oscar Health Total Funding: USD 1.5 billion
- Oscar Health Number of Employees: 1001-5000
Ranking number 2 on this list of the top insurtech companies in the world in 2020 is ZhongAn, a Chinese online-only insurance company. The insurance tech industry in Chian is booming — growing to USD 174 billion in 2020. ZhongAn has up to 460 million users and has issued over 5.8 billion insurance policies. A significant proportion of its customer base (60%), are aged 20 to 35 and most consumers from this age group bought their first insurance policy through the company. ZhongAn offers a wide range of personalized products and services to its Chinese consumers. Founded in 2013, ZhongAn has raised over USD 854 million in funding — making it one of the best insurtech companies in 2020.
- Founded: 2013
- ZhongAn Headquarters: Shanghai, China
- ZhongAn Total Funding: USD 854.1 million
- ZhongAn Number of Employees: 1001-5000
Ranking number 3 on our list of the top insurtech companies in the world is Gusto, a company that provides a cloud-based payroll, benefits, and human resource management software for businesses based in the United States. Gusto’s main product is payroll processing. Gusto was founded in 2011 and has generated total fundings of USD 516.1 million — making it one of the most successful insurance fintech startups of its time. In July 2019, Gusto raised $200 million at a $3.8 billion valuation. Gusto charges a per employee per month fee, similar to other software providers.
- Founded: 2011
- Gusto Headquarters: San Francisco, California, United States
- Gusto Total Funding: USD 516.1 million
- Gusto Number of Employees: 1001-5000
Ranking 4th on this list of the top insurance technology companies is Bright Health, an American health insurance company. Founded in 2016, Bright Health began selling health insurance plans in 2017 and Medicare Advantage plans in 2018, in reaction to the Affordable Healthcare Act. Bright Health insurance tech platform has three technology components: a user interface, a data analytics module, and a platform that works with electronic medical records and telemedicine companies. Bright Health’s total funding reached USD 1.1 billion — making it one of the top insurtech companies in the world in 2020.
- Founded: 2016
- Bright Health Headquarters: Minneapolis, Minnesota
- Bright Health Total Funding: USD 1.1 billion
- Bright Health Number of Employees: 501-1000
Clover Health ranks 5th on this list of the top 10 insurtech companies in the world in 2020. Clover Health is an American healthcare company whose goal is to use data analysis and preventive care to improve health insurance for seniors and give customers who use private versions of Medicare a less expensive option. Clover Health’s technology recognizes when patients need medical treatment and then intervenes in their care with their team of nurse practitioners and social workers to save money for both the member and the insurance company. Clover Health’s total funding reach USD 925 million — making it one of the most successful insurtech startups in the world.
- Founded: 2014
- Clover Health Headquarters: San Francisco, California, United States
- Clover Health Total Funding: USD 925 million
- Clover Health Number of Employees: 501-1000
Root Insurance ranks 6th on this list of the best insurance tech companies. Root Insurance is a property-casualty insurtech that offers personalized, affordable coverage in an app. Using technology in smartphones to measure driving behavior such as braking, speed of turns, driving times, and route regularity, Root determines who is a safe driver and who isn’t. Root requires drivers to download their mobile app and perform test driving for several weeks while the app monitors the driving behavior in the background. Root Insurance generated fundings of USD 527.50 million.
- Founded: 2015
- Root Insurance Headquarters: Columbus, Ohio, United States
- Root Insurance Total Funding: USD 527.50 million
- Root Insurance Number of Employees: 501-1000
American Well ranks 7th on this list of the top insurtech companies in the world in 2020. American Well is a telemedicine company based in Boston, Massachusetts, that connects patients with doctors over secure video. One of the most innovative startups, American Well sells its platform as a subscription service to healthcare providers to put their medical professionals online and its proprietary software development kits, APIs, and system integrations enable clients to embed telehealth into existing workflows utilized by providers and patients. American Well total funding exceeded USD 517 million — making it one of the best insurtech companies in the world in 2020.
- Founded: 2006
- American Well Headquarters: Boston, Massachusetts, United States
- American Well Total Funding: USD 517 million
- American Well Number of Employees: 501-1000
Lemonade, Inc. ranks 8th on this list of the top insurtech companies in the world in 2020. Lemonade Insurance Company is an American property and casualty insurance company headquartered in New York City offering renters and home insurance policies for homes, apartments, co-ops, and condos in many US states in addition to content and liability policies in Germany and the Netherlands. Lemonade, Inc. generated total fundings of USD 480 million as of 2020 — making it one of the top insurance tech companies in the world in 2020.
- Founded: 2015
- Lemonade Headquarters: New York City, United States
- Lemonade Total Funding: USD 480 million
- Lemonade Number of Employees: 251-500
Ranking 9th on this list of the top 10 insurtech companies in the world in 2020 is OutSystems, a low-code platform for enterprise applications. OutSystems provides tools for companies to develop, deploy, and manage omnichannel enterprise applications. OutSystems was founded in 2001 in Portugal and is currently headquartered in Boston, Massachusetts, in the United States, with offices in 11 countries.
- Founded: 2001
- OutSystems Headquarters: Boston, Massachusetts, United States
- OutSystems Total Funding: USD 422 million
- OutSystems Number of Employees: 1,228
10. Next Insurance
Rounding out BizVibe’s list of the top insurtech companies in 2020 is Next Insurance, an online insurance provider for small businesses based in Palo Alto, California. The company’s services feature claims investigation as soon as possible, with many being decision within 48 hours that helps its clients to get transparency. They use technology to eliminate agents and other expensive extras and give incredibly affordable prices. It also offers policies to a range of small businesses from general contractors to personal trainers. Next Insurance generated USD 381 million — making it one of the top insurance tech companies in the world.
- Founded: 2015
- Next Insurance Headquarters: San Francisco, California, United States
- Next Insurance Total Funding: USD 381 million
- Next Insurance Number of Employees: 251-500
This is BizVibe’s list of the top insurtech companies in the world in 2020. Keep track of these companies on BizVibe.
Top 20 Insurance Tech Companies by Total Funding
This is a complete list of the top insurance tech companies ranked by their total fundings in USD millions.
Total Funding (USD millions)
The Future of the Global Warehouse Industry
The goal of insurtech Insurtech is the use of technology innovations designed to make the current insurance model more efficient. Despite at times innovation being curbed by regulations, the market is witnessing stellar growth as we are in a more connected digital world. Expect future growth to continue being led by the innovations of the top insurtech companies in the world.