Why Startup Investors Are Putting More Money Into Insurtech

Insurance—an industry known for veteran brands and a cautious approach to risk—might seem a strange fit for the move-fast-and-break-things ethos of the startup world, but that hasn’t dissuaded venture capitalists from scaling up.

So far this year, investors have put just over $6 billion into U.S. insurance and insurtech-focused startups, per the latest Crunchbase data. With just over two months left in the year, that’s already 32 percent over the tally for all of 2020.

The activity is on all fronts, including large seed and early-stage financings, giant late-stage rounds, and a few exits from the first set of venture-backed insurance unicorns. As the space matures, it’s gotten easier to convince investors that there’s opportunity for returns.