Insurance is an old industry that has never been quick to change. But, today, many insurtech companies are beginning to take advantage of modern technology to streamline processes and save money.
Insurtech is a broad term for any technology that is applied to the insurance industry. Some companies use artificial intelligence and other data analytics tools to improve their underwriting algorithm. Others are experimenting with wearables and on-device tracking tools.
Today, many insurtech companies make it easy to compare insurers and buy policies completely online. Others offer fully-featured smartphone apps that make it easier for their customers to manage their accounts or make a claim while on the go.
Table of Contents:
Best Insurtech Companies Overview
|Lemonade||Receiving fast insurance claim payments|
|Policygenius||"One-stop shop" comparison shopping|
|Sproutt||Buying life insurance that fits your health|
|Ladder||Buying flexible life insurance|
|Bestow||Buying instant, no-medical exam life insurance|
|Gabi||Comparison-shopping for landlord insurance|
|Young Alfred||Comparison-shopping for home insurance|
|LeapLife||Comparison-shopping for life insurance|
|Metromile||Buying “pay-per-mile” car insurance|
|Lively||Opening a modern HSA account|
|Fabric||Buying life insurance when you have kids|
|Embrace||Buying mobile-friendly pet insurance|
|Oscar||Buying tech-driven health insurance|
13 Best Insurtech Companies
Want to know which companies are leveraging technology the best and shifting the insurance industry landscape? Here are our top picks for the best insurtech companies.
Lemonade is an insurance company that sells home, renters, and pet insurance policies. It belongs on our list of best insurtech companies primarily because of its use of artificial intelligence, as explained below.
Maya, Lemonade’s AI bot, is able to instantly handle many of the tasks that traditionally require human assistance. This allows Lemonade to both reduce costs and offer faster processes.
Lemonade is able to help customers find and sign up for the right insurance policy in as little as 90 seconds. Prices start at $5/month for renters insurance, $25/month for homeowners insurance, and $10/month for pet health insurance.
Lemonade’s claims process offers lightning-fast speed. If instantly approved by Lemonade’s AI, your claim could be paid out in seconds, not days or weeks. Or, for claims that require a little more information, Maya will pass it along to Lemonade’s human customer service team.
In the past, shopping for insurance could be time-consuming, requiring a lot of phone calls. But Policygenius is shaking up the insurance industry by creating a seamless online insurance shopping platform.
It doesn’t cost anything to use the Policygenius platform as it makes money by receiving referral commission from its many insurance partners. With Policygenius, you can anonymously comparison shop for a wide range of insurance products including:
- And More
Policygenius puts a high priority on rate transparency. Its commissions are already included in the prices that you see. And if one of its partners approves your application at a different rate than you were originally quoted, Policygenius can re-shop your policy to see if another insurer can offer a better deal.
Sproutt is a life insurance marketplace that was launched by a team of entrepreneurs who have experience in data and cognitive computing. And they’ve applied their understanding of big data analysis to develop an AI platform that looks deeper than most actuarial algorithms.
What really sets Sproutt apart from other insurtech companies is its proprietary “Quality of Life Index” (QL Index). It ranks a person’s physical, mental, and emotional health based on five factors:
- Emotional Health
To see your QL Index Score, you’ll need to complete the GAIA (Guided Artificial Intelligence Assessment) which typically takes about 15 minutes. After taking the GAIA, Sproutt can match you up with an insurer and policy that fits you best.
The higher your QL Index Score, the better chance you’ll have of qualifying for a lower rate. Sproutt also offers “no medical exam” insurance policies (term or whole life) for people who need to get life insurance quickly.
Ladder is an online life insurance company. It earns a spot on our list of best insurtech companies by leveraging technology both before and after customers have purchased their policies.
You don’t have to pick up the phone to shop for insurance with Ladder. You can apply right from their online application and have coverage in minutes. No contact with a sales agent required.
But where Ladder really stands out from the crowd is in the coverage flexibility that it offers. Policyholders can “ladder up” or “ladder down” their coverage amounts at any time. Simply log in to your account to increase or decrease your coverage whenever your needs change.
Due to Ladder’s advanced actuarial algorithms, many applicants will also be able to get approved for life insurance without taking a medical exam.
Bestow is another life insurance company that uses algorithmic underwriting to speed up a process that is often long and laborious. Here are the key details of their policy options:
- Coverage amounts: $50,000 to $1 million
- Premiums: Starting at $16/month
- Terms: 10 or 20 years
By pulling public data about an applicant’s medical history, credit, driving records, and more, Bestow is able to instantly underwrite policies that are just as valid as those that require medical exams.
All Bestow policies are provided by North American Company for Life and Health Insurance®, which is an A+ rated carrier.
Gabi is one of the best insurtech companies in business today that is actively working to simplify and streamline the insurance shopping process. In minutes, users can compare rates from Gabi’s over 40 insurance partners for the following insurance types:
The fact that Gabi is able to help users shop for landlord insurance sets it apart from other marketplaces, including Policygenius.
But where Gabi really shines is in how easy it makes it to make an apples-to-apples comparison of a new policy with your existing one. Simply log in to the account portal for your current insurer or upload a PDF of your policy and Gabi can quickly help you find the best rate for the same (or better) coverage.
Gabi never charges any fees to customers who use its platform. And it says that its average user ends up saving $961 per year!
Next on our list of best insurtech companies is Young Alfred, a home insurance comparison website. Young Alfred says that it analyzes “billions of data points” to help its customers find the best price on home insurance.
Young Alfred boasts a large homeowners insurance partner list that includes more than 40 providers (all rated A- or better by AM Best or Demotech). In a rarity for home insurance shopping, the entire process is digital. Unless you initiate the call, you’ll never have to speak to an agent over the phone.
LeapLife is a leading insurtech platform and digital life insurance agency that is available in all 50 states. It was recently acquired by Even Financial, a fintech whose API helps financial service companies find customers and improve their monetization.
LeapLife offers instant-decision life insurance policies. Policies can be purchased completely online from your computer or smartphone. It only takes a few minutes to apply. Or, for extra help or to get answers to questions, you can talk to a life insurance specialist over the phone.
Each of LeapLife’s insurance providers have been thoroughly vetted to ensure that life insurance shoppers get the best rates and service. And customers seem happy with the results. LeapLife currently has a 4.8 (out of 5) star rating on Trustpilot and is rated A+ by the Better Business Bureau (BBB).
Metromile is one the best insurtech companies today that is focusing solely on the car insurance industry. They offer “pay per mile” insurance that bases the amount you pay on how much you drive.
Here’s how it works. Metromile charges all of its customers a baseline fee, starting at $29/month. Then you also pay a few cents for each mile that you drive during the month. The base and per-mile rate you’re quoted is based on a variety of car insurance factors.
Don’t worry, taking a cross-country trip won’t cause your bill to skyrocket. Every mile over 250 miles per day is free. Metromile says that its customers save an average of $741 per year.
Related: Best Auto Insurance Companies
Next on our list of the best insurtech companies is Lively, a modern Health Savings Account (HSA) provider. If you have a High Deductible Healthcare Plan (HDHP), opening an HSA could be a great way to save for medical expenses and to supplement your retirement savings.
Lively has taken a great thing and made it even better by using technology to simplify processes and cut costs. For example, account holders can simply upload photos of their receipts inside the Lively app to make a reimbursement claim.
Lively is a low-cost leader in the HSA space. Individuals pay no monthly fees whatsoever (with no minimum balance requirements) and employers pay just $2.50 per employee per month.
Related: Best HSA Accounts
Fabric is an insurtech company that offers life insurance, online wills, and financial tools for families. While anyone can apply for insurance with Fabric, their products are designed to cover families while there are still kids in the house.
For this reason, the longest insurance term that Fabric offers is 30 years. However, even after your term ends, you can keep your policy until age 85 with no medical exams. Also, policyholders under age 65 can convert their term policies to permanent life insurance at any time.
Fabric uses an algorithm to expedite its underwriting services. This means that many applicants will have the option to skip the medical exams and get instant life insurance. You can also create a legally binding digital will on Fabric’s website in about 5 minutes for free.
Embrace pet insurance makes our list of best insurtech companies by virtue of offering an innovative digital pet insurance experience. Pet owners can start their quotes online or over the phone. And policies can be fully managed from the MyEmbrace customer portal.
The mobile app (available on iOS or Android) is especially helpful. Using it, customers can make claims on the go, review or change coverage, and more. You can also use the app to contact the Embrace PawSupport telehealth helpline, which is available 24/7.
Embrace pet insurance policies cover accidents and illnesses and chronic conditions like allergies, diabetes, and arthritis.
Related: Best Pet Insurance
Founded in 2012, Oscar has become one of the fastest-growing insurance companies in the health insurance space. It offers direct-to-consumer health insurance in 18 states (and counting) and leans on technology to offer superior convenience and care.
Using the powerful Oscar app, customers can:
- Review plan details
- View lab results
- Search for in-network healthcare providers (filtering by condition, specialty, location, and more)
- Access their digital ID card
- Contact a member of their dedicated Care Team
- Pay bills
Most of Oscar’s plans also come with free “Virtual Urgent Care.” This means that you can talk to a doctor at any time (24/7) over your computer or phone to get a diagnosis or prescription. These telemedicine visits cost $0 with no copays.
Related: Best Health Insurance
How We Came Up With This List
Each of the companies on the list uses technology or data to drive down costs or improve their customer experience. Specifically, we chose companies that offered one or all of the following:
- Technology that saves you time: Examples include all-digital sign-up processes, efficient underwriting algorithms, or AI-powered claims processes.
- Technology that saves you money: Examples include usage-driven premiums, comparison shopping tools, or assessment tools/wearables that enable highly personalized premiums.
- Technology that improves your level of care: Examples include online account access and management, fully-featured mobile apps, or 24/7 virtual support.
Insurtech companies are doing some amazing things. But that doesn’t mean they’ll be right for everyone. When shopping for an insurance policy, go with whichever company can offer you the best coverage at the lowest price — even if that company happens to be a traditional insurer.
But what’s certain is that insurance customers have more options than ever before. So if you haven’t shopped your insurance policies in a while, it’s never been a better time to see if one of the insurtech startups above could offer you better rates or service.