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Top Insurance Tech Startups in US

Published
28th Sep, 2023
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    Top Insurance Tech Startups in US

    Introduction

    Whether big or small, businesses use various servers, mobile devices, and clouds to improve their operations. These processes are necessary to stay relevant in the competition. Technology can impact small businesses, enabling them to plan operations, integrate, and create space for future expansions.

    The use of IT and AI in business operations, marketing, sales, and customer care has changed the dynamic of business. The insurance sector has also implemented technology for efficient operations. Technology has changed the entire customer experience in the insurance tech startup world, and technology has helped reduce costs for both customers and insurers.

    For building a successful career as insurance professionals, aspirants can choose from the best full stack web development course and begin their careers in insurance technology startups.

    What is an Insurance Tech Startup?

    Insurance tech companies, also called ‘Insurtech,’ are technology-led startups that use technology to improve customer experience and operational efficiency and reduce costs for customers and insurers. Insurtechs are part of the more significant Fintech sector. They combine insurance and technology, where insurance tech startups develop, distribute and service insurance policies using technology. New technologies enable insurers to use complex customer data and manage risk effectively.

    The role of technology is helping Insurtechs migrate towards a predictive and preventive insurance model. Insurtechs primarily focus on pure risk insurance and gaining market access through innovation. The other focus of Insurtech is on telematics and the Internet of Things (IoT), product development in the home, motor, and health insurance sectors. They also use technology to drive customer engagement and loyalty.

    InsurTechs and Technologies That Drive Them

    Advanced insurance technology is an intrinsic component of the insurance sector.

    Customers can get insurance estimates and manage coverage through mobile apps by clicking a button. These instances are proof that technology has made the paper insurance process obsolete.

    Technological tools enable insurance companies to scale and update as changing demands and capabilities, helping them compete and overtake the insurance marketplace. Insurtech is driving the insurance sector to improve services, customer satisfaction, and growth.

    Some of the best developing insurance tech tools include: 

    a) Predictive Analysis 

    Many companies employ predictive analysis to gather various statistics to predict consumer responses. Insurance tech startups can utilize predictive analysis to:

    • To select pricing and risk 
    • Recognize customers at cancellation risk 
    • Recognizing fraud risk
    • Screening claims 
    • Recognizing outlier claims 
    • Foresee trends 

    b) Artificial Intelligence 

    The application of AI has rapidly increased, with AI-enabled devices becoming common. AI provides insurers with the capability to build and offer personalized experiences to meet the growing demands of present-day consumers.

    c) Machine Learning 

    Machine learning helps improve claims processing and even automate it. Using pre-programmed algorithms, you can process extensive data on the cloud quickly and accurately. 

    d) Internet of Things (IoT) 

    IoT can automate data sharing from consumers. Businesses can utilize data from IoT gadgets like Smart Home components, automobile sensors, and wearable devices to identify rates, mitigate risks and prevent potential losses. 

    e) Social Media Data 

    Drawing social media statistics boosts risk evaluation for insurance companies, augmenting fraud identification abilities and offering a unique experience for the customer. 

    f) Telematics 

    Telematics is wearable technology in the insurance sector. Telematics in insurance will: 

    • Motivate improved driving practice. 
    • Decrease claims charges for insurers. 
    • Alter consumer association from being reactive to proactiveness. 

    g) Chatbots 

    It is approximated that Chatbots will handle 95% of all consumer activities by 2025. An automated bot can assist a customer in walking through application processes or claims processes, retaining human interruption for more complicated scenarios. 

    h) Drones 

    Remote-controlled drones are a growing type of insurance equipment that can be used in the insurance life cycle like pre-policy risk assessment, aiding preventive maintenance, and damage assessment after a loss.

    Top InsurTech Startups in the US

    Americans like to be sure that they are protected from threats, potential disasters, and property loss. Many enroll in home, auto, and health, hoping to secure against potential risks and secure peace of mind. Enrollment barriers like convoluted eligibility requirements, complex coverage options, and fine print to decipher mean the insurance sector needs a significant overhaul. This is where the Insurtech startups have addressed the critical conditions. Insurance sector professionals now have the option of an online web development certificate that can boost their career growth.

    Some of the best Insurtech startups include:

    1) Slice Labs

    Slice Labs is an on-demand insurance platform that has transformed the way people buy insurance plans or products. When insurance coverage is needed, they use big data to analyze customer risk. 

    Example: Slice Labs offers a pay-per-use policy for Uber and Lyft drivers while on the job.

    2) Bright Light 

    Founded in 2015 in Minneapolis, Bright Light is a diversified and consumer-focused health insurance service tech startup. This platform connects consumers with broker partners to streamline enrollment.

    Bright Light’s streamlined digital platform offers solutions to insurance providers to better connect with and serve their patients, reducing insurance costs while enhancing patient satisfaction.

    Bright Light provides a broad range of health insurance services and benefits to consumers and care providers throughout the US. Its Medicare advantage and individual and family plans are available across 14 states.

    3) Clover Health

    Clover Health is a $1.3 billion, data-driven health insurance startup in the US which is trying to improve the state of overall healthcare in the USA. Besides having a care management team that identifies the potential risks subscribers face, the startup uses patient-focused analytics to provide direct preventive care. The data analytics team guides the field healthcare professionals in looking into patients’ wellness to avoid potential future acute health issues. 

    4) Oscar Health

    Oscar Health believes that healthcare is broken and needs a good fix using design, data, and technology to make healthcare consumer-friendly. Due to the poor state of the healthcare system and bad customer experience, Oscar Health decided to revolutionize healthcare insurance. The exercise was backed by a set of renowned investors and advisers.

    Oscar Health was founded in 2012 and is located in New York. The Oscar Health team understands how enrollment in an insurance product when comparing several websites can be inconvenient.

    A $1.6 billion Insurtech startup, Oscar provides a centralized platform wherein consumers can discover plans and receive support. The startup offers a range of scalable insurance products for individuals, families, and businesses. The platform enables easy access to digital cards, renew prescriptions and find local providers.

    5) Gusto

    Gusto, formerly known as Zen Payroll, services nearly 200,000 businesses across the US. The $691 million startup company provides cloud-based payroll and health benefits like health insurance through automation and expert support. Its algorithms analyze and measure payroll data to create customized insurance plans for businesses and employees. 

    6) Collective Health

    Collective Health is a startup to make health insurance work better for all. Collective Health provides employers with an integrated software-based platform that permits them to administer their benefit plans, take better care of their staff, and help optimize their investment. Collective Health is frequently listed in curated lists of insurance startups in the technology space.

    The company has filed eight patents, with the three most popular patent topics including:

    • Health economics
    • Health insurance
    • Investment 

    7) Root Insurance

    Root Insurance is a $525 million startup that offers liability coverage for bodily injury and property damage, non-liability coverage for collisions, and medical payments. It also protects from personal injury, uninsured and under-insured motorist physical injuries and uninsured motorist property damages, and roadside assistance. 

    8) Go Health

    Go Health is a pioneer in the health insurance technology industry. It aims to provide individuals and families with affordable health insurance. Go Health is one of the leading Insurance tech startups in the US that started in 2011. Located in Chicago, Illinois, Go Health is working to streamline the process when choosing a proper insurance plan, which is a tedious task.

    Using machine language algorithms, this advanced platform enables users to compare health insurance quotes, suggest insurance plans that best meet their needs, and facilitate online purchases. Tele-care teams and licensed agents provide customer support during and after the plan selection, ensuring consumers benefit from the seamless experience.

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    Conclusion

    Technology brings the much-needed data analysis and prediction to the insurance sector, driving, amongst others, improved customer satisfaction, and faster claims processing. Insurance tech startups in the US offer consumers, and large insurance companies advanced tools and practices. This plays a catalytic role in transforming the ecosystem. This also opens up excellent career prospects in the Insurtech area for aspiring students and professionals. The best full stack web development course by KnowledgeHut equips students and working professionals aspiring for a promising career in business insurance tech startups. 

    Frequently Asked Questions (FAQs)

    1Which technology is needed in a tech startup?

    Technological tools like AI, Machine Learning, robotic delivery, and IoT (Internet of Things) are some required technologies in a tech startup. 

    2How many Insurtech startups does the US have?

    There are a total of 416 Insurtech startups around the world. 

    3How is technology altering the tech industry?

    Present-day technologies will enable businesses to carry out risk management more efficiently and utilize detailed consumer statistics to contribute actively to the prevention of claims.

    Profile

    Sachin Bhatnagar

    Program Director, FSD

    With 20+ yrs of industry experience in media, entertainment and web tech, Sachin brings expertise in hands-on training and developing forward-thinking, industry-centric curricula. 30k+ students have enrolled in his tech courses.

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