Steve Jobs.

Apple’s Founder.

A guy who was paying attention.

Check out his interview from 1995…

Ok, just because I seriously doubt that 100% of you watched that entire 2 minute video (#30secondattentionspans), here’s the key part:

“The web is incredibly exciting because it is the fulfillment of a lot of our dreams that the computer would not be primarily a device for computation, but metamorphisize into a device for communication.”

*Quick pause to recognize that Steve just casually dropped a 5 syllable word.*

“As you know, about 15% of the goods and services in the U.S. are sold via catalogs or over the television. All that’s going to go on the web and more. Billions and billions, soon tens of billions of dollars worth of goods and services are going to be sold on the web.”

Damn.

Did you catch what he did there?

He just predicted the dissolution of a traditional distribution model (catalogs).

Oh, and he attributed it to The Web.

I often hear talk about how companies back in the day shouldn’t have ignored how the times were a’ changin’.

They shouldn’t have refused to believe that catalogs and other traditional distribution models would soon disappear.

They should have just listened to the predictions of people like Jobs.

But I think that gives companies back in the day too much credit.

That perspective assumes that companies were completely aware of the creeping evolution; they just chose to ignore it.

Personally, I think they were probably more focused on making sure their 1996 catalog would look better than their 1995 catalog.

I wonder if they knew Jobs was saying this when he did.

Was it that they were ignoring him or that they didn’t even realize he was speaking?

Maybe, they were so head down in the daily grind that they forgot to look up.

Let’s not make the same mistake.

Let’s get off the ‘work day’ hamster wheel for a quick sec.

Let’s pay attention to our future.

(Awareness is a key to success, after all.)

Huge (I mean HUGE) amounts of money are flowing into the InsurTech space right now.

We’re past predictions at this point – companies are now willing to risk their wallets to actualize new ideas.

The question isn’t “Will the insurance industry face serious changes?”

It’s “How will the insurance industry face serious changes?”

Here’s a 30,000 foot view of InsurTech investments over the last 4 years.

screen-shot-2016-10-31-at-1-17-49-pm

 

Almost 3 BILLION bucks injected into insurance technology companies in the last 2 years??

A 244% increase over the 2 years previous?!

This a big freakin deal.

It’s a sign we should be paying more attention to what these tech companies are doing in (and to) our industry.

So, here’s what I’ve done to make paying attention easier. (I know you’re busy.)

Below is a list I’ve compiled of every InsurTech investment in the last 2 years.

Instead of being listed by investment date, they’re grouped by their effect on the industry.

The three groups are:

  • InsurTech money is modernizing traditional distribution channels.
  • InsurTech money is modernizing insurance products.
  • InsurTech money is creating new digital tools.

I would absolutely recommend taking a look at their websites if you have the chance. Some of them may blow your mind.

SEE ALSO: 3 Reasons Why P2P Insurtech Start-ups Will Not Disrupt the Insurance Industry

How is $3 Billion of InsurTech Money Affecting Our Industry?

It’s modernizing traditional distribution channels.

These 11 businesses do not have underwriting power; they’re brokers, lead generators, e-agencies, etc. Their edge is making online insurance simple, understandable and fast. Improving the initial online customer experience is their focus. 

1: Figo Pet Insurance

Investment Amount: Unknown

Investment Periods: ’16 Q1, ’15 Q4

What Makes Them Awesome: These guys are an all-in-one solution for keeping your pet healthy. They have a super slick app that lets you access a pet profile on the cloud with all “Fido’s” medical records, text any questions about coverage, file a claim any time, etc etc etc. Interestingly, they only have one carrier on board: Markel.

Check Them Out Here: https://figopetinsurance.com/

2: Justworks

Investment Amount: $45,970,000

Investment Periods: ’16 Q1, ’15 Q2, ’14 Q4

What Makes Them Awesome: Another all-in-one solution for company benefits, compliance, and payroll. Oh, and now they’ll take care of your health insurance too.

Check Them Out Here: https://justworks.com

3: CoverHound

Investment Amount: $47,300,000

Investment Periods: ’15 Q1, ’15 Q3

What Makes Them Awesome: Allows consumers to compare auto insurance rates quickly from multiple carriers. Even carriers who sell through IA’s have jumped on board the platform.

Check Them Out Here: https://coverhound.com/

4: PolicyGenius

Investment Amount: $5,300,000

Investment Periods: ’15 Q2

What Makes Them Awesome: They invented the Insurance Checkup™, where users can discover their coverage gaps and review solutions for their exact needs. They’re the only place online to shop for and compare life, long-term disability, renters and pet insurance. If you have a sec, go do their Insurance Checkup. It’s badass.

Check Them Out Here: https://www.policygenius.com/

5: CoverWallet

Investment Amount: $2,000,000

Investment Periods: ’15 Q4

What Makes Them Awesome: They’re an online comparison rater for small business (yes, P&C) insurance. Enough said.

Check Them Out Here: https://www.coverwallet.com/

6: Trov

Investment Amount: $6,680,000

Investment Periods: ’15 Q2, ’15 Q1

What Makes Them Awesome: Think on-demand insurance for your stuff (meaning you only insure it when you need the insurance). They don’t currently have an end-to-end solution, but they will be a licensed company in the next year according to a statement they made in this TechCrunch article.

Check Them Out Here: https://www.trov.com/

7: Bunker

Investment Amount: $2,000,000

Investment Periods: ’16 Q2

What Makes Them Awesome: They refer to themselves as an “Insurance Marketplace for Contractors and Freelancers.” Basically, they connect contractors/freelancers who need insurance with companies that provide those specialized programs. They have a super sleek online experience.

Check Them Out Here: https://www.buildbunker.com/

8: LEAGUE

Investment Amount: $29,000,000

Investment Periods: ’16 Q2, ’14 Q4

What Makes Them Awesome: They help small businesses offer wellness benefits like nutritionist services, yoga and gym memberships to their employees through a mobile app that matches them with providers. Employee reviews are off the charts; people love the app. They’re working on partnerships with health insurance companies. Also, they’re currently located in Canada, but will be moving into the U.S. in the next year.

Check Them Out Here: https://league.com/ca/

9: NerdWallet

Investment Amount: $100,000,000

Investment Periods: ’15 Q2

What Makes Them Awesome: They have a *huge* library of educational insurance content. But their gig in insurance right now is as a comparison rater for auto, life and health insurance.

Check Them Out Here: https://www.nerdwallet.com/blog/category/insurance/

10: Cover

Investment Amount: $120,000 + unknown amount

Investment Periods: ’16 Q3, ’16 Q1

What Makes Them Awesome: Basically, you download their app, snap a picture of what you want to insure (the possibilities are endless) send it over to them and they send you back a quote. They do not write the policies; they send leads to their partner companies. However, they’re working on an in-house end-to-end solution (aka becoming a carrier).

“The app currently routes customers to a broker, but Cover will be licensed in the next few months to provide an end-to-end in-app solution. It’s a compelling solution that lets consumers interact with insurance in a very different way.”

TechCrunch

Check Them Out Here: http://www.usecover.com/

11: Goji

Investment Amount: $25,230,000

Investment Periods: ’16 Q2, ’15 Q3

What Makes Them Awesome: They can compare rates from 16 auto carriers in minutes and write a policy for you in seconds. They refer to themselves as an ‘online insurance agency that combines smart tech with human expertise to find you the right policy at the best price.’

Check Them Out Here: http://www.goji.com/

It’s modernizing insurance products.

These 10 businesses have end-to-end insurance solutions for their customers. They do not work with IA carriers; they write the business themselves. This gives them more freedom to improve the entire Customer Experience (which is what each of them has said is a huge focus). Pay attention to these guys.

1: Clover Health

Investment Amount: $295,000,000

Investment Periods: ’16 Q2, , ’15 Q4, ’15 Q3

What Makes Them Awesome: They’re using data to aid preventative measures which in turn help decrease insurance claims. For example, if they know someone fills a prescription every month and they don’t see the prescription claim come in, they’ll check in with their client to make sure everything is ok (and a medical emergency doesn’t happen because their pills weren’t being taken). Interestingly, their target audience is the older generation who uses medicaid.  Click here for an awesome article on what they’re doing.

Check Them Out Here: https://www.cloverhealth.com/en/

2: Oscar

Investment Amount: $575,500,000

Investment Periods: ’16 Q1, , ’15 Q3, ’15 Q2

What Makes Them Awesome: They are completely revolutionizing the healthcare Customer Experience. As in…actually making it enjoyable. Honestly, just go check out their website. It’s pretty mind-blowing. Right now, they’re only servicing a few states in the NorthEast, but they’re growing quickly.

Check Them Out Here: https://www.hioscar.com/

3: Ladder Financial

Investment Amount: $205,000,000

Investment Periods: ’15 Q3

What Makes Them Awesome: A super seamless online experience to understand and purchase term life insurance.  They have a sweet site.

Check Them Out Here: https://www.ladderlife.com/

4: MetroMile

Investment Amount: $88,400,000

Investment Periods: ’16 Q3, ’14 Q4

What Makes Them Awesome: They offer pay-per-mile insurance for low-mileage drivers. You’re probably thinking “psh, whatevs.” But here’s the catch: they’re heavily targeting Uber drivers because of the personal lines coverage gaps. So, Uber drivers can pay for a program that’s active only when they’re driving (and you better believe Uber peeps love that). Pretty smart, if you ask me.

Check Them Out Here: https://www.metromile.com/

5: Slice

Investment Amount: Unknown

Investment Periods: ’16 Q3,’16 Q1

What Makes Them Awesome: They provide on-demand homeshare and rideshare insurance. The sharing economy has created these huge coverage gaps. Why? Because traditional insurance companies aren’t keeping up with evolving business models. That’s where companies like Metro Mile and Slice have an advantage.

Check Them Out Here: http://www.slice.is/

6: Lemonade

Investment Amount: 13,000,000

Investment Periods: ’15 Q4

What Makes Them Awesome: Peer-to-Peer insurance for homeowners and renters. Check out Ryan Hanley’s legit article on them by clicking here. Also, if you haven’t seen it, go watch their home page video. Even I love it.

Check Them Out Here: https://lemonade.com/

7: Friendsurance

Investment Amount: 15,300,000

Investment Periods: ’16 Q1

What Makes Them Awesome: Another peer-to-peer model, based in Germany. An American company invested in them. I’ll be honest, I don’t know much about them besides that.

Check Them Out Here: http://www.friendsurance.com/

8: Embroker

Investment Amount: 14,300,000

Investment Periods: ’16 Q1, ’15 Q4

What Makes Them Awesome: They do commercial insurance for small businesses like you’ve never seen it before. Aside from the great quoting process, they’ve got a dashboard to help you manage your insurance products and needs. I signed up for their dashboard so you can take a look behind-the-scenes below.

http://agencynation.wistia.com/medias/z8vw9glbhf?embedType=async&videoFoam=true&videoWidth=640

Check Them Out Here: https://www.embroker.com/

9: Next Insurance

Investment Amount: 13,000,000

Investment Periods: ’16 Q1

What Makes Them Awesome: Another company trying to make small business insurance more enjoyable. Not as “cool” as Embroker, but definitely just as sleek. I’d recommend this article on them if you want a deeper look.

Check Them Out Here: https://www.next-insurance.com/

10: Hamilton Insurance Group

Investment Amount: 250,000,000

Investment Periods: ’16 Q1

What Makes Them Awesome: I would *absolutely* pay attention to these guys. They aren’t writing in the U.S. yet, but they will soon. Their goal is to improve the underwriting process for small business insurance using technology and “big data.” Here’s a solid press release on where they’re at.

Check Them Out Here: http://www.hamiltongroup.com/

It’s creating new tools.

These 19 businesses have developed new tools to help manage risk and make processes more efficient. 

1: Cryptomove

Investment Amount: 620,000

Investment Periods: ’15 Q4

What Makes Them Awesome: They’re working on a tool that helps manage cyber security risk.

Check Them Out Here: https://www.cryptomove.com/

2: Converge Industries

Investment Amount: 420,000

Investment Periods: ’16 Q3

What Makes Them Awesome: Technology that allows insurance inspectors to fly drones to inspect buildings and send reports direct to their carrier’s system.

Check Them Out Here: http://www.convergeindustries.com/

3: Descartes Labs

Investment Amount: 8,380,000

Investment Periods: ’16 Q3, ’15 Q4, ’15 Q2

What Makes Them Awesome: Daily forecasts for crop production that help with insurance risk management.

Check Them Out Here: http://descarteslabs.com/

4: kWh Analytics

Investment Amount: 5,000,000

Investment Periods: ’16 Q3

What Makes Them Awesome: Technology that helps manage the unique risks facing the solar panel industry.

Check Them Out Here: http://www.kwhanalytics.com/

5: Limelight Health

Investment Amount: 3,700,000

Investment Periods: ’14 Q4

What Makes Them Awesome: A health insurance app designed for insurance agents (and carriers) to help them quote and process policies more efficiently and simply.

Check Them Out Here: https://www.limelighthealth.com/

6: PebblePost

Investment Amount: 1,320,000

Investment Periods: ’14 Q4

What Makes Them Awesome: Transforms real-time online activity into personalized direct mail within 24 hrs through web analytics. Super interesting idea.

Check Them Out Here: http://pebblepost.com/

7: Pypestream

Investment Amount: 5,460,000

Investment Periods: ’16 Q2, ’15 Q4

What Makes Them Awesome: A tool for carriers (and potentially, agents) who want to automate customer service through messaging to decrease costs. This tool eliminates the need for phone calls by providing another contact solution.

Check Them Out Here: https://www.pypestream.com/

8: Snapsheet

Investment Amount: 2,250,000

Investment Periods: ’15 Q1

What Makes Them Awesome: An app that improves the auto claims process by making it more efficient and transparent for the carrier and customer.

Check Them Out Here: http://www.snapsheetapp.com/

9: Driveway Software

Investment Amount: Unknown

Investment Periods: ’16 Q3

What Makes Them Awesome: A smartphone telematics company that strives to make people safer drivers by monitoring performance and setting goals.

Check Them Out Here: http://www.driveway.ai/

10: BetterView

Investment Amount: 3,050,000

Investment Periods: ’16 Q3, ’16 Q1

What Makes Them Awesome: Aerial imagery for property claims with drones.

Check Them Out Here: https://www.better.vu/

11: Airware

Investment Amount: 30,150,000

Investment Periods: ’16 Q3, ’16 Q2, ’16 Q1, ’15 Q2, ’14 Q4

What Makes Them Awesome: More aerial imagery for property claims with more drones.

Check Them Out Here: https://www.airware.com/industries/insurance

12: QuanTemplate

Investment Amount: 7,970,000

Investment Periods: ’15 Q3

What Makes Them Awesome: A company that helps carriers measure and monitor underwriting performance in order to make it less costly and more accurate.

Check Them Out Here: https://www.quantemplate.com/solutions#underwritingPerformance

13: Symbiont

Investment Amount: 1,240,000

Investment Periods: ’15 Q2

What Makes Them Awesome: Symbiont’s smart contracts platform can automate many administrative functions currently performed by the insurance industry, helping reduce costs and the potential for disputes. Their platform is used in many other industries, but was recently debuted for executives of insurance and re-insurance carriers in a September webinar.

Check Them Out Here: https://symbiont.io/

14: Tyche

Investment Amount: 400,000

Investment Periods: ’15 Q2

What Makes Them Awesome: Tyche is using big data to build next-generation risk engines to empower stakeholders in liability claims to manage and minimize disputes to drive both claims and underwriting profitability. Learn more about what they do here:

Check Them Out Here: http://www.tycherisk.co/

15: Drive Spotter

Investment Amount: 830,000

Investment Periods: ’16 Q2, ’15 Q3, ’15 Q1

What Makes Them Awesome: A tool that helps an employer manage the risk facing his auto fleet. It improves driver safety and efficiency using data analytics and telematics.

Check Them Out Here: http://drivespotter.com/

16: Roost

Investment Amount: 6,470,000

Investment Periods: ’15 Q3, ’14 Q4

What Makes Them Awesome: An app that connects to your home and notifies you when fire, pipe leakage, pipe freezing or other home issue occurs.

Check Them Out Here: http://getroost.com/index

Also check out: https://cocoon.life/

And: https://neos.co.uk/ (a UK company that could be modeled in the U.S.)

17: ZenDrive

Investment Amount: Unkown

Investment Periods: ’14 Q4

What Makes Them Awesome: Another app that uses the sensors on a smartphone to measure and improve driving behavior.

Check Them Out Here: https://www.zendrive.com/

18: InforcePro

Investment Amount: 4,000,000

Investment Periods: ’15 Q3

What Makes Them Awesome: A life insurance policy servicing platform for both producers and carriers. It gives you a complete picture of your Life book of business, including direction on how to best service and cross-sell to current clients.

Check Them Out Here: https://inforcepro.com/producers

19: Sureify

Investment Amount: Unknown

Investment Periods: ’16 Q3

What Makes Them Awesome: Tools to help agents accumulate a lifetime of data on their policyholders instead of one static portrait, increasing customer engagement and ultimately driving more revenue.

Check Them Out Here: https://sureify.com/

It’s Time To Pay Attention.

40 businesses.

$2,902,508,000.

These guys aren’t messing around.

They’re here to shake things up.

It’s time for us to take them seriously.

– Syd

Want to get involved in digital marketing, but don’t know where to start? Join hundreds of the industry’s top agents in Agency Nation’s flagship digital marketing course, Zero To SalesClick here to learn more.

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