EMERGING TECH RESEARCH

Insurtech Report
VC trends and emerging opportunities

Q1
2023
Contents
Vertical update 3 Institutional Research Group
Analysis
Q1 2023 timeline 5
Robert Le Senior Analyst, Emerging Technology
Insurtech landscape 6 robert.le@pitchbook.com
pbinstitutionalresearch@pitchbook.com
Insurtech VC ecosystem market map 7

VC activity 9 Data

Matthew Nacionales Data Analyst

Emerging opportunities 18

Insurance brokerage and agency platforms 19 Publishing

Independent workers insurance 22 Report designed by Jenna O’Malley and Drew Sanders

Select company highlights 24 Published on June 13, 2023

Socotra 25

Joshu 27

For previous updates as well as our complete insurtech

research, please see the designated analyst workspace
on the PitchBook platform.

Q1 2023 Insurtech Report CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 2

Vertical update
Q1 2023 saw a continuing decline in insurtech VC investment, a trend that has been ongoing for
seven quarters. However, PE investment and M&A activity picked up during the quarter. One Insurtech VC deal activity by quarter
notable deal was the $2.6 billion public-to-private LBO of legacy insurtech software developer
Duck Creek Technologies by Vista Equity Partners. Duck Creek, a core insurance platform,
$5.0 250
has a few major global carriers as clients, including Berkshire Hathaway Specialty Insurance,
Hollard Insurance, Northbridge Financial, and Tokio Marine. This deal follows another public-to- $4.5

private LBO of a legacy core system developer in 2020, when Thoma Bravo acquired Majesco for $4.0 200
approximately $729 million. Core system provider Insurity also acquired competitor CodeObjects
$3.5
through an LBO that same year. We expect more consolidation to occur in this space and believe
that Guidewire and OneShield may be M&A targets. We believe that additional consolidation at $3.0 150
the top could lead legacy core system providers to further shift their focus to large carriers, which
$2.5
would present opportunities for emerging, cloud, and API-native insurtech core systems—like
Socotra and BriteCore—to fill the market gap by offering their platforms to the long tail of smaller $2.0 100

or newer insurance companies.

$1.5

Although insurtech companies have continued to make progress so far in 2023, we believe their $1.0 50

market outlook remains challenged against the backdrop of poorly performing public offerings, $0.5
high inflation, rising interest rates, higher competition, and use of unsustainable business models.
$0.0 0
In addition, capital flight from risk assets has led to a significant slowdown in venture funding of
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
insurtech companies during this timeframe, a trend we anticipate will continue in 2023. These
2018 2019 2020 2021 2022 2023*
developments will pressure insurtech companies to focus on cost cutting and capital preservation,
Deal value ($B) Deal count
leading to slower growth.

Source: PitchBook • Geography: Global • *As of March 31, 2023

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VERTICAL UPDATE

Private market valuations for insurtech companies have been viewed as overpriced, but we
believe that valuations may have begun to bottom out, as reflected in the HSCM Public InsurTech
Index. The index, which has been down over 70% as of year-end 2022 from a high in early 2021,
has begun to recover. Through the first three months of 2023, the index is up 15.9%. We believe
this valuation correction is partly due to the slight recovery of the tech sector, with the Nasdaq
Composite up 21.9% during the first quarter of 2023. The mature insurance sector was down
3.1% during this time period as measured in the KBW Nasdaq Insurance Total Return Index. Still,
insurance is a vital part of the global economy, with PitchBook analysts estimating total direct
written premiums reaching $7.0 trillion in 2022, or 6.9% of global GDP. While there are many large
incumbents, the industry remains fragmented, partly due to local regulation in many countries. We
believe this fragmentation presents a key opportunity for nimble, fast-moving insurtech startups.

Q1 2023 Insurtech Report CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 4

 Q1 2023 timeline Q1 VC deal count summary

115
total deals
January 27 February 8 March 14
Insurance agency operations platform
COVU announces that they are leveraging
Next Insurance partners with LegalZoom
to embed its small business insurance in
Embedded insurance platform Cover Genius
acquires embedded warranty service Clyde.
8.5%

VC exit
QoQ growth

News
News

OpenAI’s platform to help insurance agents the LegalZoom platform, allowing small Clyde partnered with online merchants
automate administrative tasks, generate businesses to get a quote for business to offer extended product warranties at
targeted marketing, and discover new sales insurance and purchase coverage without checkout. The acquisition will enable Cover -44.7%
opportunities.1 leaving the LegalZoom interface.3 Genius to further expand into the US and YoY growth
new business segments.
-33.2%
TTM growth
Jan 1

Feb 1

Mar 1

Mar 31
Q1 VC deal value summary

February 1 February 23 March 23

Insurtech startup wefox is reportedly Chubb introduced Climate+, a new business Home insurtech company Kin raises a $109 $1.1B
conducting layoffs only a few months unit providing insurance products, services, million Series D at a $750 million pre-money total deal value

VC deal
News
News

after its CEO criticized the tech and startup and risk management to businesses, valuation. Although it’s an up round relative
industry for large-scale layoffs. The startup
subsequently closed a $55 million VC round
promoting a transition to a low-carbon
economy and managing the impact of
to the company’s $630 million post-money
valuation after a Series C in 2021, it’s less
-9.9%
on February 14.2 climate change.4 than the approximately $1 billion valuation
QoQ growth
it announced as part of a SPAC merger that
was cancelled in 2022. -65.3%
YoY growth

1: “Insurtech COVU Leverages OpenAI to Streamline Insurance Agency Operations,” Business Wire, January 27, 2023.
2: “Insurtech Wefox Begun Shrinking Workforce of Around 1,400 Employees,” Beinsure, March 22, 2023.
-51.9%
3: “LegalZoom and Next Insurance Partner To Create an Embedded Experience For Small Businesses Insurance,” LegalZoom, February 7, 2023. TTM growth
4: “Chubb Announces Global Climate Business Unit to Help Combat and Manage Climate Change,” Chubb, January 4, 2023.

Q1 2023 Insurtech Report CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 5

Insurtech
landscape 2

1 Property & casualty

5
2 Health & life

3 Commercial 4

4 Administration & claims

3
5 Underwriting
6

6 Distribution & intermediation

1
Q1 2023 Insurtech Report
Insurtech VC ecosystem market map
Market map is a representative overview of venture-backed or growth-stage providers in each segment.
Click to view the interactive market map on the PitchBook Platform.
Companies listed have received venture capital or other notable private investments.

Property & casualty Health & life Commercial

Auto Pet insurance Health Business liability

Home Renters Life Cyber insurance

Micro- & nontraditional personal insurance Employment

Loss protection

Q1 2023 Insurtech Report CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 7

Insurtech VC ecosystem market map
Market map is a representative overview of venture-backed or growth-stage providers in each segment.
Click to view the interactive market map on the PitchBook Platform.
Companies listed have received venture capital or other notable private investments.

Administration & claims Underwriting Distribution & intermediation

Billing collections Portfolio strategy & management Agent & broker tech

Claims & settlement Pricing automation HR benefits administration

CRM & policy serving Risk assessment & analytics Infrastructure & APIs

Marketplaces

Q1 2023 Insurtech Report CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 8

VC activity
In Q1 2023, $1.1 billion was invested across 115 deals, representing a drop of 9.9% in deal value
and an increase of 8.5% in deal count QoQ. The deal value was the lowest amount since Q2 2018.
While venture investments decreased across most segments during the quarter, commercial
insurance represented a bright spot. Deal value for commercial insurtech startups increased
137.4% QoQ to $223.7 million. This was driven largely by small and medium-size business (SMB)
insurer Superscript’s $54.5 million Series B and commercial fleet insurer Fairmatic’s $46.0 million
Series B. The largest deal of the quarter, a $150.0 million Series A, belonged to India-based
InsuranceDekho, an online insurance marketplace.
VC exits remained muted during Q1, with no recorded exit value and nine exits total. This was
primarily due to broader market conditions as public offerings ground to a halt across the entire
technology sector. Public offerings were the primary exit route in 2021, leading to a record $36.6
billion in recorded exit value that year. Without the ability to IPO, we believe that M&A will be the
most viable exit option over the next 12 to 18 months. We view the insurance enablers as attractive
acquisition targets for incumbents as these companies can add valuable technology assets and
capabilities to an acquirer. Companies we view as potential targets include Shift Technology,
Descartes Underwriting, Envelop Risk, and AgentSync.

Valuations for the quarter decreased across the seed and late stages, while early-stage valuations
went up. Although seed valuations in 2022 were up 19.6% relative to the year prior, so far in 2023,
seed deals are down 5.3% compared with full-year 2022. The median early-stage pre-money
valuation in Q1 2023 increased 7.7% to $27.3 million from $25.4 million in 2022, and the median
late-stage valuation decreased 21.5% to $45.2 million from $57.5 million in 2022. This corresponds
with decreased median deal sizes for seed deals, coming in at $1.9 million—down 5.3%—and
late-stage deals, measuring $7.5 million—down 25.0%. Interestingly, the median early-stage deal
value was larger than the late-stage median deal value, measuring $10.6 million, up 84.6% for Q1
2023 compared with full-year 2022. Pre-money valuation step-ups, a measure to gauge valuation
accretion between stages, were similar across all venture rounds with an overall industry median
step-up of 1.4x.

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VC ACTIVITY

Insurtech VC deal activity Insurtech VC exit activity

772 51

617
548 36
514 516
417 28
25
16 9
115 15
$1.1 $0.0
$2.3 $3.4 $2.4
$6.9 $6.9 $7.4 $16.2 $9.4 $0.6 $0.6 $8.2 $36.6

2017 2018 2019 2020 2021 2022 2023* 2017 2018 2019 2020 2021 2022 2023*

Deal value ($B) Deal count Exit value ($B) Exit count

Source: PitchBook • Geography: Global • *As of March 31, 2023 Source: PitchBook • Geography: Global • *As of March 31, 2023

Insurtech VC deal activity by segment in Q1 2023* Insurtech TTM VC deal activity by segment*

28 165
23 22
19 121 122
18
16
85 87
70

$362.5
$100.3 $223.7 $413.9 $87.3 $307.8 $96.6 $2,119.6 $2,605.6 $917.1 $1,133.1 $1,496.3

Administration Commercial Distribution & Health & life P&C Underwriting Administration Commercial Distribution & Health & life P&C Underwriting
& claims intermediation & claims intermediation

Deal value ($M) Deal count Deal value ($M) Deal count

Source: PitchBook • Geography: Global • *As of March 31, 2023 Source: PitchBook • Geography: Global • *As of March 31, 2023

Q1 2023 Insurtech Report CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 10

VC ACTIVITY

Median insurtech VC deal value ($M) by stage Median insurtech VC pre-money valuation ($M) by stage

$15 $80
$57.5
$10.0 $10.6
$60
$10 $45.2
$7.5
$5.7 $40 $27.3
$25.4
$5
$20
$2.0 $1.9 $8.0 $6.6

$0
$0
2017 2018 2019 2020 2021 2022 2023* 2017 2018 2019 2020 2021 2022 2023*

Angel and seed Early-stage VC Late-stage VC Angel and seed Early-stage VC Late-stage VC

Source: PitchBook • Geography: Global • *As of March 31, 2023 Source: PitchBook • Geography: Global • *As of March 31, 2023

Insurtech VC exit value ($M) by type Insurtech VC exit count by type

$40 Buyout 60 Buyout

Acquisition 50 Acquisition
$30
Public listing Public listing
40

$20 30

20
$10
10

$0 0
2017 2018 2019 2020 2021 2022 2023* 2017 2018 2019 2020 2021 2022 2023*

Source: PitchBook • Geography: Global • *As of March 31, 2023 Source: PitchBook • Geography: Global • *As of March 31, 2023

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VC ACTIVITY

Key insurtech angel and seed VC deals*

Company Close date (2023) Segment Category Deal value ($M) Lead investor(s)

Zorro March 28 Distribution & intermediation HR benefits administration $11.5 10D, Pitango Venture Capital

Liberate January 5 Distribution & intermediation Infrastructure & APIs $7.0 Eclipse Ventures

Propeller January 11 Distribution & intermediation Agent & broker tech $6.4 N/A

hi.health January 11 Health & life Health $6.4 N/A

XILO January 11 Distribution & intermediation Agent & broker tech $6.0 New Stack Ventures

Vertical Insure January 18 Commercial Business liability $5.9 Dundee Venture Capital, Greenlight Capital Re, Rally Ventures

Buddy March 30 Distribution & intermediation Infrastructure & APIs $5.1 N/A

Coverage Cat March 7 Property & casualty Home $4.0 N/A

Curacel February 14 Administration & claims Claims & settlement $3.0 N/A

CoverDash January 23 Commercial Business liability $2.5 Bling Capital

Source: PitchBook • Geography: Global • *As of March 31, 2023

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VC ACTIVITY

Key insurtech early-stage VC deals*

Company Close date (2023) Segment Category Deal value ($M) Lead investor(s) Valuation step-up

Micro- & nontraditional

Qoala January 20 Property & casualty $72.4 Eurazeo, responsAbility Investments N/A
personal insurance

Angle Health January 25 Distribution & intermediation HR benefits administration $58.0 Portage Ventures 0.7x

Dayforward January 23 Health & life Life $25.0 AXA Venture Partners N/A

OpenEyes Insurance February 14 Commercial Business liability $18.0 Insight Partners, Pitango Venture Capital N/A

Joyn Insurance January 12 Commercial Business liability $17.7 OMERS Ventures N/A

iLife Technologies January 19 Distribution & intermediation Agent & broker tech $17.0 Brewer Lane Ventures, Foundation Capital, SCOR 1.9x

Vitraya Technologies January 5 Administration & claims Claims & settlement $4.1 StartupXseed Ventures 2.3x

Baobab Insurance January 30 Commercial Cyber insurance $3.2 Augmentum Fintech N/A

Jet Insurance Company January 17 Commercial Loss protection $3.0 N/A N/A

Pendella March 28 Distribution & intermediation Infrastructure & APIs $2.7 N/A N/A

Source: PitchBook • Geography: Global • *As of March 31, 2023

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VC ACTIVITY

Key insurtech late-stage VC deals*

Company Close date (2023) Segment Category Deal value ($M) Lead investor(s) Valuation step-up

InsuranceDekho February 14 Distribution & intermediation Marketplaces $150.0 TVS Capital, The Goldman Sachs Group N/A

Kin March 23 Property & casualty Home $109.0 Geodesic Capital, QED Investors 1.2x

Fairmatic January 23 Commercial Loss protection $46.0 Battery Ventures N/A

Roojai March 28 Property & casualty Auto $42.0 HDI Global N/A

Paytient January 10 Administration & claims Billing & collections $40.5 Mercato Partners 1.3x

Flock February 27 Property & casualty Auto $38.0 Octopus Ventures N/A

PatientFi January 30 Administration & claims Billing & collections $32.1 Patriot Financial Partners N/A

Coincover February 9 Commercial Loss protection $30.0 Foundation Capital N/A

Pier Digital February 16 Property & casualty Auto $18.5 N/A N/A

Naked February 15 Property & casualty Auto $17.0 International Finance Corporation N/A

Source: PitchBook • Geography: Global • *As of March 31, 2023

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VC ACTIVITY

Key insurtech VC exits*

Company Close date (2023) Segment Category Exit value ($M) Exit type Acquirer(s)

Lepermislibre February 8 Property & casualty Auto $41.1 IPO N/A

Luko March 30 Property & casualty Home N/A M&A Tuio

Anorak January 25 Health & life Life N/A M&A Clark

Compera March 29 Distribution & intermediation Marketplaces N/A M&A tarife.at

insureQ February 28 Commercial Business liability N/A M&A Infos AG

Clyde March 16 Distribution & intermediation Infrastructure & APIs N/A M&A Cover Genius

Picwell January 9 Distribution & intermediation HR benefits administration N/A M&A Jellyvision

Human API March 7 Distribution & intermediation Infrastructure & APIs N/A M&A LexisNexis Risk Solutions

Cambridge Mobile Telematics, General Catalyst, Raptor Group,

Amodo March 1 Underwriting Risk assessment & analytics N/A Buyout
SoftBank Investment Advisers, State Farm Ventures
Source: PitchBook • Geography: Global • *As of March 31, 2023

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VC ACTIVITY

Top strategic acquirers of insurtech companies since 2017* Top VC investors in insurtech companies since 2017*

Company Deal count Investor type Company Deal count

Zywave 5 PE-backed company Anthemis 50

Applied Systems 4 PE-backed company 500 Global 49

Verisk Analytics 4 Corporation MS&AD Ventures 45

RVU 2 Corporation Munich Re Ventures 33

Brown & Brown 2 Corporation American Family Ventures 29

Insurity 2 PE-backed company ManchesterStory 29

CUNA Mutual Group 2 Corporation IA Capital Group 27

One80 Intermediaries 2 Corporation Foundation Capital 27

Source: PitchBook • Geography: Global • *As of March 31, 2023

Quiet Capital 26

Mundi Ventures 25

Source: PitchBook • Geography: Global • *As of March 31, 2023

Q1 2023 Insurtech Report CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 16

VC ACTIVITY

Top VC-backed insurtech companies by total VC raised to date*

Company VC raised to date ($M) Segment Category HQ location

Devoted Health $2,049.5 Health & life Health Eagan, US

wefox $1,376.6 Property & casualty Home Berlin, Germany

Next Insurance $886.0 Commercial Business liability Palo Alto, US

Coalition $770.0 Commercial Cyber insurance San Francisco, US

Collective Health $755.0 Distribution & intermediation HR benefits administration San Mateo, US

Gusto $751.2 Distribution & intermediation HR benefits administration San Francisco, US

SLING Insurance $664.7 Commercial Cyber insurance Tel Aviv, Israel

Pie Insurance $620.3 Commercial Employment Washington, US

Alan $556.6 Health & life Health Paris, France

bolttech $547.0 Distribution & intermediation Infrastructure & APIs Singapore

Source: PitchBook • Geography: Global • *As of March 31, 2023

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Emerging opportunities
Insurance brokerage and agency platforms Independent workers insurance

Insurance producers are adopting new tools The expanding gig economy is leading to
to better price, sell, and manage policies. an increased demand for industry-specific
products.
Insurance brokerage and
agency platforms
Insurance brokers and agents are intermediaries who help individuals and businesses find suitable
insurance coverage at the best market rates. Brokers represent the insurance buyer, searching
the entire market to find the best coverage for their clients’ needs. They don’t have exclusive
agreements with insurance companies. On the other hand, insurance agents do have exclusive
contracts with insurance companies, selling their products either as “captive” agents (representing
one insurer) or “independent” agents (representing several insurers). Over the past decade, the
insurance brokerage and agency space has encountered multiple challenges, including:
• The rise of new digital insurance providers and online marketplaces threatens to disrupt
the traditional brokerage and agency model. Brokers and agents must continually strive
to differentiate themselves to maintain customer loyalty and attract new clients in a
crowded market.
• Regulatory changes are pushing the insurance industry to continually adapt to new laws. This
includes rules related to data protection, fair pricing, and ethical practices, which can be time-
consuming and costly to comply with.
• The increasing complexity of insurance products is requiring brokers and agents to educate their
clients more thoroughly. Further, clients’ expectations for quick, convenient service are growing,
which can be challenging to meet
Q1 2023 Insurtech Report
• Emerging risks, such as climate change and pandemics, compel brokers and agents to stay
informed in order to accurately advise their clients and provide appropriate coverage. Further,
growing consumer demand for businesses to demonstrate environmental sustainability and
social responsibility has prompted an increased demand for insurance products covering
environmental and social risks.
• Consolidation, driven largely by private equity investment activity as covered in our Q2 2022
Analyst Note: Private Equity in the European Insurance Sector, has made it more difficult for
independent brokers and agents to compete with the resources and reach of PE-backed entities.
To remain competitive and address these challenges, brokers and agents are increasingly adopting
digital tools and new technologies. These emerging insurance brokerage and agency platforms
help brokers and agents better connect with clients, provide online quotes, manage policies, and
handle claims. This helps brokers and agents streamline their operations, enhance customer
service, make more informed decisions, and reduce operating costs. Further, the insurance end
customers also benefit from these platforms by receiving faster response times, better service,
and more personalized offerings.
CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 19
INSURANCE BROKERAGE AND AGENCY PLATFORMS
AgentSync is a technology platform designed to help carriers, managing general agents (MGAs),
brokerages, and agencies manage their producer data more effectively. The platform’s primary
advantage lies in its ability to simplify and automate time-consuming and error-prone processes,
such as administrative duties related to producer management, by using a centralized system
for managing and utilizing producer data. This includes a direct integration with the National
Insurance Producer Registry (NIPR) for real-time tracking of agent licensing and appointments,
thereby streamlining the process of verifying agent qualifications. The platform also integrates
with various insurance carriers to maintain up-to-date information and facilitate management
tasks. Furthermore, it aids in regulatory compliance by tracking pertinent information and helping
brokerages and agencies avoid legal complications and penalties.
Stubben Edge has developed an “insurance broker in a box” that is dedicated to simplifying
and enhancing insurance distribution for brokers. The company’s platform offers tools for lead
generation, policy administration, customer relationship management (CRM) capabilities, and
data analytics. Its core product, Flightdeck, has key features that include access to a range of niche
and bespoke insurance products, a white-label product marketplace, and customer self-service
capabilities through a client portal. Users can also manage policies and related documents from
one centralized location. For CRM, Flightdeck offers a dashboard for tracking revenue and sales
pipelines, scheduling and task management tools, and communication capabilities, including
automated emails. To aid decision-making, the Flightdeck provides industry news and insights,
a data depository with useful reports on the competitive landscape and business sectors, and a
valuation calculator to evaluate the company’s worth and the impact of Flightdeck on its value.
Q1 2023 Insurtech Report
Despite the rise of technology, the role of agents and brokers in the insurance industry is not likely
to disappear. Instead, it will continue to evolve. As routine tasks get automated, we believe agents
and brokers will focus more on value-added activities such as CRM, advising on complex insurance
needs, and personalized service. The future of insurance agents and brokers is likely to be
characterized by a hybrid model where human touchpoints are combined with technology-driven
solutions. By leveraging technology, agents and brokers can provide more efficient and customer-
centric services.
Further, we expect ChatGPT and other large language models (LLMs) to disrupt this space by
automating customer service, risk assessment, personalized marketing, and other processes. We
believe that LLMs will augment the capabilities of agents and brokers, making them more efficient
and enabling them to provide superior customer service. For example, insurtech startup COVU
anticipates a significant shift in the insurance industry toward the use of generative AI tools,
such as OpenAI’s APIs and ChatGPT, to streamline operations, improve customer service, and
enhance cross-selling opportunities. The startup has already developed an AI-powered platform
that they claim can reduce customer service costs by up to 30%, potentially saving millions for
insurance agencies. 5 The company is planning to leverage generative AI using OpenAI and others
to automate more operations and processes for insurance agencies.
5: “Insurtech COVU Leverages OpenAI to Streamline Insurance Agency Operations,” Business Wire, January 27, 2023.
CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 20
INSURANCE BROKERAGE AND AGENCY PLATFORMS

Select VC-backed agent and broker platforms*

Company HQ Location Year founded Total raised ($M) Latest deal date Latest deal type Latest deal amount ($M)

AgentSync Denver, US September 1, 2018 $111.1 December 7, 2021 Series B $75.0

Novidea Netanya, Israel January 1, 2009 $88.0 May 3, 2023** Series C $50.0

Stubben Edge London, UK April 19, 2010 $37.5 February 1, 2023 Late-stage VC $8.0

Agentero Oakland, US January 1, 2017 $21.6 July 27, 2021 Series A $13.5

iLife Technologies Sunnyvale, US April 10, 2019 $21.0 January 19, 2023 Series A $17.0

Insly London, UK July 21, 2014 $12.8 September 15, 2022 Late-stage VC $1.9

COVU Redwood City, US January 1, 2019 $12.0 October 18, 2022 Series 1 $10.0

Better Agency Mesa, US January 1, 2019 $10.6 May 2, 2022 Series A $8.0

Wunderite Bourne, US January 1, 2015 $10.3 January 3, 2023 Series A $7.2

Broker Buddha New York, US January 1, 2014 $10.0 April 29, 2022** Seed $5.0

Source: PitchBook • Geography: Global • *As of March 31, 2023

**deal occurred after Q1 2023

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Independent workers insurance
The recent rise in independent contractors, “gig workers,” and freelancers is being fueled by
several factors, including an expansion of the sharing economy (including ridesharing and short-
term home rentals); a growing demand for flexibility and control over work-life balance; and
incremental earning potential. Online platforms have made it simpler for contractors to connect
with clients and find work opportunities. In the US, 36% of those employed consider themselves to
be independent workers. 6
This growing market has presented new opportunities to develop insurance products geared
toward independent workers. Incumbents, or traditional insurers, often struggle with providing
coverage due to the lack of historical data and the unconventional risk profiles presented by gig
workers and sharing economy businesses. Compared with incumbents, insurtech companies
are more capable of using artificial intelligence & machine learning (AI & ML), and other types
of data analytics to assess risk from limited and semi-structured datasets as covered in our
2023 Emerging Space Brief: Synthetic Data. Insurtech companies are also addressing the needs
of independent workers with innovative solutions. For example, some startups provide on-
demand insurance that enables gig workers to toggle their coverage on or off based on when
they’re working, providing crucial flexibility and cost savings. Other startups provide usage-based
insurance (UBI), which uses real-time data to assess risk and adjust premiums based on actual
usage. Many insurtech companies also position themselves as advocates for independent workers,
providing resources and support to help navigate gig economy challenges, thereby building trust
and loyalty.
Independent workers encounter various challenges, including uncertain income due to the
absence of a fixed salary, which can complicate budgeting for expenses like insurance premiums.
6: “Freelance, Side Hustles, and Gigs: Many More Americans Have Become Independent Workers,” McKinsey & Company, August 23, 2022
Q1 2023 Insurtech Report
They also lack employer-provided benefits such as health insurance and retirement plans, which
can create financial challenges. Further, independent workers face potential liability issues if a
client is dissatisfied with their work or if it causes harm or property damage. There is also the risk
of nonpayment by clients, and unexpected events can interrupt their work and cause income loss.
Insurtech companies are developing innovative insurance products that are aiding independent
workers in managing this unique set of challenges.
UK-based Zego specializes in offering flexible, on-demand insurance to businesses and
independent workers in the gig economy. Its services are targeted toward rideshare and delivery
drivers in that policies can be obtained hourly, daily, weekly, or permanently. The company offers a
variety of coverage plans, including motorbike, van, and private-hire insurance. Its approach uses
data-driven underwriting, analyzing telematics data to better evaluate risk and set personalized
rates. Zego also provides business solutions by enabling companies to manage insurance policies
for entire fleets via a single dashboard. Similarly, Buckle provides an on-demand insurance product
for gig workers in the US and raised a $70.0 million Series B round in Q3 2021.
Another startup, Alicia Insurance, aims to address the specific needs of freelancers, who they
believe are often underserved by traditional insurance providers. Freelancers are personally liable
for any damages arising from their work and may face significant costs if something goes wrong.
These risks extend to their clients as well, who can also be affected by uninsured freelancers.
Traditional insurance options often don’t align with the needs of freelancers and frequently
categorize them as small businesses, therefore requiring them to pay for unnecessary coverage.
Alicia offers more flexible insurance products that are specifically tailored to fit the needs
of freelancers.
CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 22
INDEPENDENT WORKERS INSURANCE

Select private independent workers insurance providers*

Latest deal
Company Description HQ location Year founded Total raised ($M) Latest deal date
amount ($M)

Zego P&C for rideshare and delivery drivers London, UK January 1, 2016 $257.7 March 9, 2021 $205.7

Buckle P&C for rideshare and delivery drivers Atlanta, US January 1, 2017 $116.0 March 22, 2022 $15.0

Health Insurance for remote workers and

SafetyWing Palo Alto, US January 1, 2017 $52.0 March 31, 2022 $35.0
digital nomads

Insify Commercial insurance for freelancers Amsterdam, Netherlands April 16, 2020 $19.0 February 10, 2022 $17.0

Alicia Insurance Commercial insurance for freelancers Rotterdam, Netherlands January 1, 2018 $7.1 September 1, 2022 $7.1

Gigacover P&C for gig workers Singapore July 14, 2016 $5.5 February 11, 2022 $3.0

Stable Insurance P&C for rideshare drivers New York, US January 1, 2018 $3.3 March 25, 2022 $0.1

Wopta Health insurance for freelancers Milan, Italy January 1, 2022 $3.2 June 1, 2023 $5.0

Welfaire Health insurance for self-employed Paris, France January 1, 2020 $2.5 September 1, 2022 $2.5

Stello Commercial insurance for freelancers Paris, France December 16, 2016 $2.2 April 15, 2020 $1.7

Source: PitchBook • Geography: Global • *As of March 31, 2023

Q1 2023 Insurtech Report CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 23

Select company highlights
SELECT COMPANY HIGHLIGHTS: SOCOTRA

Founded Total raised: Last financing valuation: Lead investors:

2014 $96.6M $315.0M post-money 8VC, Brewer Lane
Ventures, Portage
HQ Location: Last financing: Ventures, Insight Partners
Austin, TX Raised $50.0M in a Series C

Overview
Socotra is a core insurance platform that allows insurers to manage policies, claims, billing, and
other insurance functions. Its platform can be used for a wide range of insurance applications,
from property & casualty (P&C) insurance to life & health insurance. The platform provides
features like product configuration, policy administration, billing, claims management, and
analytics. One of Socotra’s competitive advantages is its API-first design. This means that the
platform can be easily integrated with other systems, allowing insurers to build a tech stack that
suits their specific needs. This kind of flexibility is beneficial as the insurance industry is changing
rapidly. The ability to innovate and adapt quickly is now a key factor for insurance companies to
remain competitive. Socotra’s core platform enables insurers to create a flexible, personalized
UBI product within weeks to deliver to customers, while a traditional core system would require
months if not years to produce the same product. Socotra’s core insurance platform leverages
prebuilt, open APIs and is agnostic to insurance line, geography, and distribution channel. It counts
AXA, Nationwide, and Mutual of Omaha as some of its customers.

Q1 2023 Insurtech Report CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 25

SELECT COMPANY HIGHLIGHTS: SOCOTRA

Leadership
Socotra was founded by CEO Dan Woods. Woods has extensive experience in the tech industry,
and before starting Socotra, he worked as a researcher at Stanford (while obtaining an MS in
computer science) and in engineering roles at Palantir. He also spent four years at VC firm
Formation 8.

Financing history

Seed Series A Series B Series B1 Series C

September 22, 2014 September 24, 2018 January 23, 2020 March 1, 2021 March 14, 2022

Total raised: Total raised: Total raised: Total raised: Total raised:
$2.0M $16.6M $15.2M $12.9M $50.0M
Raised to date: Raised to date: Raised to date: Raised to date: Raised to date:
$2.0M $18.6M $33.8M $46.6M $96.6M
Pre-money valuation: Pre-money valuation: Pre-money valuation: Pre-money valuation: Pre-money valuation:
N/A $10.9M $60.0M $80.0M $265.0M
Post-money valuation: Post-money valuation: Post-money valuation: Post-money valuation: Post-money valuation:
N/A $27.5M $75.2M $92.9M $315.0M

Q1 2023 Insurtech Report CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 26

SELECT COMPANY HIGHLIGHTS: JOSHU

Founded Total raised: Last financing: Lead investors:

2020 $3.7M Raised $3.7M in seed round Blumberg Capital

Overview
Joshu is a commercial insurance platform that allows insurance carriers and MGAs to quickly
build and deploy commercial insurance products. Insurers using Joshu can create both digitized
versions of existing commercial insurance products and completely new products. Its streamlined
process only requires insurers to build a customized application, connect a rater, and upload policy
documents. The platform enables insurers to reach digital channels more quickly by creating
products in hours versus the traditional timeline of months. Insurers can then start distributing
products via custom storefronts for direct distribution or portals for distribution through brokers.
Clients can create an unlimited number of storefronts and portals, each with customizable options
based on the distribution channel. Joshu’s platform integrates with existing core systems and
third-party data providers. Historically, commercial insurance has been purchased in person.
However, the pandemic has accelerated its digitization, and we believe businesses will increasingly
seek to purchase insurance through digital channels.
Leadership
Joshu is led by Co-founder and CEO Roy Mill. Previously, Mill was the Vice President of Product
at At-Bay, a leading cyber insurtech company. Prior to At-Bay, Mill spent more than four years
in senior product roles at Ancestry. Shimi Bornstein is the Co-founder and Chief Technology
Officer. Bornstein was also previously at At-Bay and held the role of Vice President of Research
& Development. Bornstein held software development and system architect roles at various
technology companies over the prior 15 years.
Financing history
In January 2021, Joshu raised a $3.7 million seed round led by Blumberg Capital. Engineering
Capital, Correlation Ventures, Innovation Endeavors, and Sure Ventures also participated in
the round.

Q1 2023 Insurtech Report CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 27

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Nizar Tarhuni Vice President, Institutional Research and Editorial

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