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Tech startup dealmaking by insurance firms including AXA, XL Catlin, MassMutual, and others is on pace for a record high in 2016. Carriers are no longer shying away from insurance tech.

As more insurers including Aviva, XL Catlin, and Guardian Life launch investment arms, tech startup dealmaking by insurance firms is on pace for a record high in 2016, according to CB Insights data. In the first three months of 2016, insurers completed nearly 20 deals. The same set of insurers completed just 8 deals over the same period last year.

Interestingly, while insurers previously shied away from tech startups working directly in the insurance value chain, 2016 has seen several strategic investments by carriers into insurance tech startups. These deals include XL Innovate’s investment in Slice Labs, a startup aiming to provide on-demand coverage for ride-sharing drivers and home-sharing owners; Intact’s investment in per-mile insurance provider Metromile; and MassMutual Ventures, Transamerica Ventures, and AXA Strategic Ventures’ investment into insurance-comparison portal PolicyGenius.

(Note: This research brief primarily analyzes non-healthcare insurance corporations. A complete list of the insurance companies and their corporate VC arms used in this analysis is provided at the end of this research brief.)

 

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Below are a handful of the largest tech deals in Q1’16 that included a strategic insurance investor.

 

Largest Tech Startup Deals With Insurer Participation — Q1’16 QTD
CompanyDescriptionStrategic Round InvestorRound Amount ($M)
BlockstreamSidechain technology developmentAXA Strategic Ventures55
CaptricityData capture platform for paper documentsWhite Mountains Insurance Group35
DataRobotMachine learning platform for data scientistsNew York Life Strategic Investments33
BochewangUsed car marketplacePing An Ventures30
RiskifiedE-commerce fraud and charge-back preventionThe Phoenix Companies25
YourMechanicAuto repair on-demandAmerican Family Ventures24
Maxwell HealthBenefits software and insurance brokerSun Life Financial, GIS Strategic Ventures22
PolicyGeniusPolicy-comparison engine for term life and other personal linesAXA Strategic Ventures, MassMutual Ventures, Transamerica Ventures15

 

For reference, active insurance CVCs and corporates since 2010 included in this venture capital financing analysis are listed below:

  • AXA Strategic Ventures
  • Allianz Digital Corporate Ventures
  • AIG
  • American Family Ventures
  • Aviva Ventures
  • Intact Financial
  • China Life
  • John Hancock/ManuLife
  • Sun Life Financial
  • Gibraltar Ventures
  • Ping An Ventures
  • Chubb
  • White Mountains
  • USAA
  • Northwestern Mutual
  • MassMutual Ventures
  • New York Life
  • Phoenix
  • GIS Strategic Ventures

Looking for more insurance tech data and analytics? Check out the CB Insights Venture Capital Database free.

 

[CB Insights]