InsurTech is the promise that new technologies and approaches can revolutionize an industry that is both very large (7% of U.S. GDP is comprised of insurance premiums) and very slow to change.
Gain Compliance started in 2016, when the amount of investment in domestic InsurTechs was a staggering $800+ million. Relative to other venture capital segments, this was truly a mind-blowing statistic.
And yet… this level of investment has not only held steady, but actually grown (blue in the graph below):
The highest profile and heaviest uses of funding are around the insurers who are being started out ot whole cloth – Hippo, Oscar, Lemonade. But, if you scratch the surface, there are a host of firms which are disrupting discrete (but still very large) core functions such as distribution and underwriting.
You’d have to keeping on digging to get to Gain’s slice of the InsurTech – compliance and reporting (and, for good reason). Perhaps the biggest indicator of how hot this area of investment is comes not from the press about the high-fliers, but maybe from the level of attention even we get from analysts and investors.
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