10 innovative startups in the insurance industry

Examples of clever things new insurance businesses are doing to overcome long-standing pain points, delight customers, and generate new revenue streams.

Our experts analyzed the most innovative new businesses within the insurance industry and handpicked 10 remarkable startups. 

Why should you care? When you need business-model inspiration, there are many options to explore. Browse this list and copy the elements that fit your needs!

More cases? Download the insurance startups eBook!

This blog post contains only a selection of 10 innovative cases, but you can download the full pdf for free.

London-based insurtech Zego provides flexible insurance for both businesses and professionals. They use real-time data to ensure their users are only insured for the hours they require.

Zego partnered with WeFlex to provide them a tailor-made pricing model for their 700-strong fleet, which Zego produces by analyzing every aspect of the fleet and its drivers’ historic behavior.

HQ

London, United Kingdom, Europe

Industry to learn from

Insurance, B2C

Founded

2016

On which trends
does this company focus

Mobile documentation, Gig economy, Pay as you go

How does it work?

Flexibility

Zego offers an hourly policy for scooter delivery drivers. This means drivers no longer have to pay for insurance they don’t need. Instead, they can get flexible cover for the hours they work.

Transparent

Zego doesn’t charge for any administrative work like changing addresses or vehicle details.

Paperless

Users never lose their important documents since they can view or download them in the app whenever they want.

Insoore connects insurance and fleet-management companies with thousands of human surveyors who are available to take photos of insured vehicles for them in a given area.

This is a pivot from Whoosnap – a brand that connects photographers and videographers with brands and newspapers.

HQ

Rome, Italy, Europe

Industry to learn from

Insurance, B2B

Founded

2017

On which trends
does this company focus

Crowdsourcing, Geo location, On demand, Real time

How does it work?

Crowdsourcing

Insoore registers users who are willing to go out and survey vehicles for insurance, and connects this network to fleet-management and insurance companies who would rather not send out dedicated personnel themselves.

On demand

Users only take action after an insurance company puts out a request for a specific vehicle in their vicinity.

Real time

Pictures of requested vehicles are available immediately after they are taken by the user.

Flock is an insurtech company building a big-data driven risk intelligence platform for drones.

Flock provides on-demand insurance when the user needs it, so the customer only pays for coverage when they’re actually flying their drone. It’s backed by Allianz, the world’s largest aviation insurer.

HQ

London, United Kingdom, Europe

Industry to learn from

Insurance, B2C

Founded

2015

On which trends
does this company focus

Big data, Pay as you go, Real time data

How does it work?

Tailored pricing

Flock tailors a Risk Metric for each user that takes real time data into account. This means that a user will pay more for insurance when it’s set to rain or when they’re flying in rush hour.

Easy claim

When something goes wrong, users make a claim via the app in a couple of taps, doing away with the usual need for filling in multiple forms.

Transparency

The Flock Cover app incentivizes lower-risk flights with cheaper insurance policies, and makes this insight completely visible to pilots. Pilots can use Flock’s Flight Planning tool to see when and where it’s safest to fly their drones within a 10-day period.

Only $9 billion of the $50 billion market for flood losses is insured. With rising sea temperatures of 1.5°C, direct flood damage is set to increase by 160-240%.

FloodFlash provides fairly priced, no-exclusions flood insurance. Customers receive a pre-agreed settlement as soon as a sensor detects that waters have exceeded a critical depth.

HQ

London, United Kingdom, Europe

Industry to learn from

Insurance, B2C

Founded

2017

On which trends
does this company focus

IOT, Climate change

How does it work?

Tailored pricing

FloodFlash uses an algorithm to set tailored prices, enabling them to write personalized, competitive flood policies for the highest-risk locations around the world.

Instant settlement

FloodFlash’s policy pays out right after water reaches the agreed upon depth, skipping the usual months-long claim process.

Transparent claims

Claims are settled based on objective data from the customer’s FloodFlash sensor. If the trigger-depth has been breached, the full payment is sent to the client.

The number of people using ride-hailing services is expected to grow by 12.9% by 2022. INSHUR is a fully digital insurance platform for commercial and ride-share drivers, owners, and fleets.

Efficient and easy to use, their record time for a quote given and policy bought was just 171 seconds.

HQ

New York, USA, North America

Industry to learn from

Insurance, B2C

Founded

2017

On which trends
does this company focus

Ride sharing, Mobile first

How does it work?

Mobile first

INSHUR’s mobile-first platform enables drivers to manage the entire insurance lifecycle from their smartphone.

Discounts

INSHUR drivers are eligible for a 10% discount on their insurance premium if they’ve followed a defensive driving course.

Instant quotes

Instead of calling around for brokers and waiting for a quote, INSHUR provides customers with the ability to get a quote and buy cover in minutes, rather than days.

Clark is an insurance platform providing transparent, cheap, comprehensive insurance cover.

Clark acts as an independent insurance broker. They have over 100,000 customers.

HQ

Berlin, Germany, Europe

Industry to learn from

Insurance, B2C

Founded

2015

On which trends
does this company focus

Customer experience, Robo advice

How does it work?

Fully digital

Users can see all their insurance plans at a glance. This way, they always know what contracts they have and can manage everything easily and paper-free.

Advice

Clark shows its customers where they are paying too much and creates alternative offers on request. The user can receive them via phone, email or chat.

Transparent

Clark always shows how much commission they receive from the insurance companies.

Zeguro is a cyber-insurance startup that helps small businesses mitigate their cyber risks. They continuously scan their clients’ digital assets to identify potential cyber weaknesses.

Zeguro also provides cyber-security awareness training to help employees prepare for threats, such as ransomware scams, password theft, and phishing schemes.

HQ

San Fransisco, USA, North America

Industry to learn from

Insurance, B2C

Founded

2016

On which trends
does this company focus

GDPR, Hacking

How does it work?

Tailored

Zeguro uses the data it collects on each business to provide cyber insurance coverage that is tailored.

Instant Cyber Insurance

Businesses can purchase an active cyber-insurance policy in as little as five minutes.

Fully digital

The distribution channel is fully digital without intermediary fees, and policy holders can file a claim and receive assistance from the Zeguro team 24/7.

Bought By Many groups customers with specific insurance needs and offers them tailored products based on how many members they have in each group. They have 700,000 members.

Bought By Many has analyzed millions of insurance-related Google search terms to identify unmet demand or frustrations with insurance.

HQ

London, United Kingdom, Europe

Industry to learn from

Insurance, B2B2C

Founded

2012

On which trends
does this company focus

Communities, Individualization: unique offers

How does it work?

Customer-driven

Customers click on an advert on social media or Google, they become members of Bought By Many, and join groups related to their insurance needs. When groups are large enough, Bought By Many uses the strength-in-numbers to negotiate products with partner insurers in exchange for reaching their user groups. Bought By Many might also create an insurance offer themselves. These products are then offered to users via the platform.

Better deals

A better deal might mean better pricing, more tailored benefits, or both. Bought By Many negotiates with big-name insurers to offer users discounts, cash-back, and freebies that aren’t available anywhere else.

B2B2C

How does Bought By Many make money? As well as offering their own products, Bought By Many asks insurers to split the usual broker fee into three parts: one-third for the members to get a better benefit, one-third for Bought By Many, and one-third for the insurance company.

Ottonova provides health insurance products through its digital platform. They are a leading European player in the €34 billion health market. They’re now expanding its white-label platform to other insurers.

HQ

Munich, Germany, Europe

Industry to learn from

Insurance, B2C

Founded

2015

On which trends
does this company focus

Customer experience, Personal advice

How does it work?

Digital concierge

Ottonova’s app provides customers with a digital concierge service (allowing customers to book appointments, get support when abroad, etc.), a personal medical timeline (e.g. past appointments, prescriptions), and an automated claims-handling process, including the ability to make claims by photographing receipts and uploading them.

Top ups

Those who are already insured via Germany’s public system can buy ‘top-up’ coverage for things like dental insurance or add-on hospital cover.

Fast reimbursements

Customers receive their paybacks within a few hours after uploading their bill via the app. This way, they have their money long before they have to pay their doctor.

Lemonade is a full-stack insurance company powered by AI and behavioral economics and driven by social good. In April 2019, Lemonade raised $300 million, valuing the company at $2 billion. Lemonade holds the world record for the fastest claim: 3 seconds.

HQ

Munich, Germany, Europe

Industry to learn from

Insurance, B2C

Founded

2015

On which trends
does this company focus

Transparency, Charity

How does it work?

Instant everything

Lemonade lets customers chat with an AI bot to personalize their insurance. Customers can be insured in 90 seconds and paid out in 3 minutes.

Reverse insurance model

Lemonade treats the premiums as its customers’ money. So how does Lemonade make money? They take a fixed fee out of the monthly payments to cover reinsurance and other unavoidable expenses. Lemonade uses the rest for paying out claims.

Giveback

The money that’s left after paying out claims is given to causes the customer cares about. They gave back $162,135 in 2018.

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Innovative insurance startups

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