THE INSURER INVESTOR...7 Profiling the Insurer Investor We analyzed 145 insurer-investors defined as an insurance carrier (e.g. Hiscox), or an insurer venture arm (e.g. CMFG Ventures),

THE INSURER

INVESTOR2019/2020

2

Forwards

Each year gener8tor hosts the OnRamp Insurance Conference with the goal of facilitating connections between insurance startups, corporations and investors. While this year has certainly gone off plan we are grateful for the 23 corporate partners who joined us for a virtual Startup Track on April 7 where we facilitated more than 250 virtual 1:1 pitch meetings between insurance corporations and startups.

We are proud to work with Coverager to present our inaugural Annual Insurer Investor Report. This report explores trends around active corporate venture capital (CVC)investors and some of the notable recent deals that transform the industry. In future reports, we hope to dive deeper into data around strategic partnerships between insurers and startups.

Over the past five years, we’ve seen insurtech and fintech startups emerge to advance an industry overdue for modernization. Startups are intent on improving policyholder experience, streamlining back-end processes, and developing new products across the insurance value chain. With each passing year, these startups have enjoyed increasing investment by insurance incumbents eager to evolve with consumer demands.

2019 marked a record year for insurer-backed deals, jumping 176 percent from 2015. It is clear that strategic investors play a significant role in helping startups grow and develop. In particular, insurance CVCs offer financial strength, dedicated teams and access to business resources, making them attractive to entrepreneurs seeking investment.

As we all experience the impact of COVID-19, we can be certain that the insurance industry will adapt and put customers first. Entrepreneurs will continue to imagine and create. Insurers will continue to innovate and build. Investment and partnerships will set the stage for the future of insurance.

Thank you for reading, we welcome your feedback! And as always, thank you for your continued support.

Joe Kirgues and Troy VossellerCo-Founders of gener8tor

Contents

THE METHODOLOGY

THE INVESTORS

PROFILING THE INSURER-INVESTOR

SPOTTING THE OUTLIERS

THE INVESTMENTS

A COMPETITIVE LANDSCAPE

IF PERCEPTION IS REALITY

2020

FINAL THOUGHTS

5

6

7

15

24

25

27

28

29

4

5

The Methodology

The findings of this report are based on an analysis of data sourced from Coverager Data and Crunchbase.

We primarily analyzed disclosed investments announced between 2015 to Q1 2020 with the following criteria:

• Investments included at least one insurance carrier or insurance investment unit, whether VC or else

• Deal stages excluded debt, private equity, corporate, IPO and secondary market rounds

In total, we analyzed over one thousand transactions with participation from 145 insurer/investor entities that have backed 686 companies across miscellaneous industries.

Years in Business

Headquarters

51% of companies analyzed are US-based

10% of companies analyzed were established in the past three years

The World is One Big Data Problem

There are two main issues with analyzing insurance investments based on data from Crunchbase and these are the lack of consistency in picking an insurer investor (e.g. startups may pick American Family or American Family Ventures) and not all startups list each and every investor (e.g. Advizr, a financial planning software firm based in New York, received backing from Allianz, yet according to Crunchbase, Advizr has 4 investors: SEI, Franklin Templeton Investments, Fenway Summer Ventures, and IA Capital Group). But as you’ll soon discover, not all data problems make a difference.

The besT invesTmenT sTraTegy is The one you sTick wiTh and The one ThaT works for you. as such, This reporT isn’T abouT rankings as publicly disclosed daTa will never be a good indicaTion of qualiTy invesTmenTs. buT whaT This reporT offers is The abiliTy To measure inTenTions, assess acTiviTy and even enjoy a glimpse inTo which cvcs have earned a good repuTaTion.

6

The Investors

7

Profiling the Insurer Investor

We analyzed 145 insurer-investors defined as an insurance carrier (e.g. Hiscox), or an insurer venture arm (e.g. CMFG Ventures), or a venture arm backed by one or more insurance carriers (e.g. MTech Capital). This categorization accounts for 98 percent of the insurer-investors analyzed.

According to Coverager’s Research:

of VC firms have been established since 2015.

70%

23% European VCs 63% American VCs

145insurer-investors

100 40

re/insurer VC2016

remains a peak year in terms ofnew insurance VC entrants

Insurer VC firms established since 2015:

2015

2016

2017

2018

7

3

8

10

8

The list below highlights the insurer-investors analyzed, sorted by alphabetical order.

1. Aegon

2. Aetna

3. Aetna Ventures

4. Aflac

5. Aflac Corporate Ventures

6. AG2R La Mondiale

7. Allianz

8. Allianz Life

9. Allianz Life Ventures

10. Allianz X

11. Alma Mundi Ventures

12. American Family Insurance

13. American Family Ventures

14. AmTrust Financial

15. Anthem

16. Argo Ventures

17. Assurant

18. Assurant Growth Investing

19. Avanta Ventures

20. Aviva

21. Aviva France

22. Aviva Ventures

23. AXA

24. AXA Venture Partners

25. Axis Capital

26. Baloise Group

27. Baloise Strategic Ventures

28. Beazley Group

29. Blue Cross and Blue Shield

of Minnesota

30. BlueCross BlueShield

Venture Partners

31. BNP Paribas Cardif

32. China Pacific Insurance

33. China Taiping Insurance

34. Chubb

35. Cigna

36. Cigna Ventures

37. Clover Health

38. CMFG Ventures

39. CNP Assurances

40. Cream City Venture Capital

41. CSAA Insurance Group

42. CUNA Mutual Group

43. Dai-ichi Life

44. Debeka

45. Desjardins Venture Capital

46. Die Mobiliar

47. Direct Line Group

48. EMC Insurance

49. ERGO

50. Erie Insurance

51. FairVentures

52. Farmers Mutual Hail

53. FM Global

54. GIS Strategic Ventures

55. Grange Insurance

56. Great Eastern Holdings

57. Greenlight Re

58. Grinnell Mutual

59. Grupo SURA

60. Guardian

61. Guggenheim Partners

62. Hannover Re

63. HDFC Ergo

64. HDFC Life

65. Health Care Service

Corporation

66. Helvetia Venture Fund

67. Hiscox

68. Hollard

69. Horizon Healthcare Services

70. Humana

71. IAG

72. IAG Firemark Ventures

73. ICICI Prudential Life

74. Intact Financial Corporation

75. Intact Ventures

76. John Hancock

77. Kaiser Permanente

78. Kotak Life Insurance

79. Legal & General

80. Legal & General Capital

81. Liberty Mutual

82. Liberty Mutual Strategic

Ventures

83. MACIF Group

84. MACSF

85. MAIF Avenir

86. Malakoff Humanis

87. Manulife

88. Markel Corporation

89. MassMutual

90. MassMutual Ventures

91. Matmut

92. MetLife

93. Migdal

94. MS&AD Ventures

95. MTech Capital

96. Munich Re/HSB Ventures

97. Nationwide

98. Nationwide Ventures

99. New York Life Insurance

100. New York Life Ventures

101. NFP Ventures

102. Northwestern Mutual Future

Ventures

103. NRMA

104. OMERS

105. Open CNP

106. Pacific Life

107. PartnerRe

108. Phoenix Insurance Company

109. Ping An

110. Ping An Global Voyager

Fund

111. Ping An Ventures

112. Principal Financial Group

113. Prudential

114. QBE Ventures

115. RGA

116. RGAX

117. Santam Insurance

118. SCOR

119. Securian Financial

120. Shriram Life Insurance

121. Signal Iduna

122. Singlife

123. Sirius International

Insurance Group

124. Societe Generale

Assurances

125. Starr Companies

126. State Auto Labs

127. State Farm Ventures

128. State National

129. Sumitomo Life Insurance

130. Sun Life Financial

131. Suncorp Group

132. Swiss Life

133. Swiss Re

134. The Co-operators

135. The Hartford

136. Tokio Marine

137. Transamerica

138. Transamerica Ventures

139. Travelers

140. UNIQA Group

141. UNIQA Ventures

142. UnitedHealthcare

143. USAA

144. XL Innovate

145. Zurich

INDICATES AN INSURER-BACKED VC

9

Old Money, New Brands

2019 recorded 268 insurer-backed deals reaching an all-time high and signaling a 176 percent jump from 2015. Last year, Allianz participated in Lemonade’s $300 million Series D round (announced Apr 11, 2019) and Munich Re/HSB participated in Next Insurance’s $250 million Series C round (announced Oct 7, 2019).

Insurer-Backed Deals/Year

2015

2016

2017

2018

2019

97

146

268

238

218

INSURER-INVESTOR

Allianz

Munich Re/HSB Ventures

Desjardins Venture Capital

Allianz

Allianz X

Ping An Global Voyager Fund

Prudential

Baloise Strategic Ventures

Alma Mundi Ventures*

Alma Mundi Ventures*

Lemonade

Next Insurance

La Coop fédérée

Fundbox

N26

Better.com

Remitly

FRIDAY

Wefox

Wefox

04/11/2019

10/07/2019

11/01/2019

09/24/2019

07/17/2019

01/31/2019

07/10/2019

03/07/2019

03/06/2019

12/11/2019

300M

250M

228M

176M

170M

160M

135M

127M

125M

110M

INVESTMENT ROUND DATE AMOUNT ($)

2019 Top Ten Insurer-Backed Rounds

* MAPFRE is an anchor investor in Alma Mundi Ventures

10

An Average Change

There’s the famous saying ‘Appetite comes with eating’ meaning that the more you have, the more you want to have. And yet while the number of insurer-investors increased over the years, the average deal count per investor hasn’t, as on average it will make 2.6 deals per year.

Count of Active Insurer-Investor and Deals by Year

2015

2016

2017

2018

2019

35

54

89

93

98

97

146

218

238

268

Average Amount of Deals by Insurer-Investor Per Year

2015 2016 2017 2018 2019

2.8 2.7 2.4 2.72.6

The average amount of deals an insurer-investor makes per year

2.6

COUNT OF INSURER-INVESTORS COUNT OF DEALS

11

Planting Seeds, Aiming for Growth

According to RocketSpace’s Tech Startup Founders blog, Seed rounds refer to a series of related investments in which 15 or less investors “seed” a new company with anywhere from $50,000 to $2 million. This money is often used to support initial market research and early product development. Investors are typically rewarded with convertible notes, equity, or a preferred stock option in exchange for their investment. And Series A rounds refer to a smaller number of angel investors or VCs who contribute an average of $2-10 million in exchange for equity. The fund is named after the type of equity investors hope to eventually receive: Series A Preferred shares. This implies they will be the first group of investors to receive preferred shares.

Insurer-investors have a larger appetite for Series A rounds (which accounts for 25 percent of deals), followed by Series B rounds (21 percent) and pre- and Seed rounds (20 percent).

31% of insurer-investor rounds in 2015 were Series A

27% of insurer-investor rounds in 2016 were pre- and seed stage

26% of insurer-investor rounds in 2019 were Series B

recorded the steepest drop (29.6%) in percentage of Seed deals compared to prior year

recorded the highest Series C rounds in term of percentage of

deals (11%)

12

Percentage of Insurer-Investors Deals by Stage

(PRE) SEED SERIES A SERIES B

SERIES C SERIES D OTHER

2015

2016

2017

2018

2019

21%31%

27% 24%

19%27%

21%26%

16%21%

20%

4%

18%

7%

17%9%

20%

8%

26%

11%

2%

23%

3%

21%

4%

24%

3%

23%

7%

18%

20%25%

21%

21%4%

22%

AV

G

13

Average Insurer-Backed Investments by Stage

(PRE) SEED SERIES A SERIES B SERIES C

2015

2016

2017

2018

2019

$1.9M

$2.1M

$2.3M

$4.1M

$2.5M

$8.7M

$12M

$19.4M

$11.2M

$21.1M

$17M

$26.6M

$25.9M

$29.9M

$32.2M

$79.2M

$31.2M

$52.2M

$53.3M

$42.1M

14

An Appetite for Insurance and Beyond

Insurance companies account for 28 percent of deals, followed by financial services (14 percent) and healthcare (12 percent). Moving beyond this immediate comfort zone, you’ll find all sorts of companies from different industries including smart home, mobility, pet and construction.

Insurance accounts for 28% of investments

Finance accounts for 14% of investments

Healthcare accounts for 12% of investments

46%OTHER

Percentage of Deals by Industry

15

Spotting the Outliers

Consistently Above Average

Earlier we reported that on average an insurer-investor makes 2.6 deals a year. Only four venture capital arms consistently made at least three deals a year between 2015 to 2019 and these are: American Family Ventures (with an average of 6 deals a year), AXA Venture Partners (with an average of 10.4 deals a year), BlueCross BlueShield Venture Partners (with an average of 6.4 deals a year), and MassMutual Ventures (with an average of 7.6 deals a year).

2015 2016 2017 2018 2019

8 7 7

3

5

2015 2016 2017 2018 2019

9

15

10108

2015 2016 2017 2018 2019

76

8

56

2015 2016 2017 2018 2019

7 75

8

11

American Family Ventures Deals by Year AXA Venture Partners Deals by Year

BCBS Venture Partners Deals by Year MassMutual Ventures Deals by Year

16

The lists below indicate the 38 insurer-investors who made at least three deals in 2019 by count of deals. For example, Alma Mundi Ventures and MS&AD Ventures made 12 deals each.


2. AXA


4. CMFG Ventures

5. Guardian

6. Legal & General

7. Liberty Mutual

8. Liberty Mutual Strategic Ventures

9. Manulife


11. NFP Ventures

12. SCOR

13. UNIQA Ventures

3 Deals

1. Argo Ventures


3. Avanta Ventures

4. Cigna Ventures


6. MAIF Avenir

7. Northwestern Mutual Future Ventures


4 Deals

1. Allianz


3. Aviva Ventures


5. RGAX


5 Deals

1. BlueCross BlueShield Venture

Partners

2. Prudential

6 Deals1. Allianz X

2. Dai-ichi Life

3. Ping An Global Voyager Fund

7 Deals1. AXA Venture Partners

2. MTech Capital

8 Deals


9 Deals1. MassMutual Ventures

11 Deals1. Alma Mundi Ventures

2. MS&AD Ventures

12 Deals

2019 IN REVIEW

17

35 insurer-investors made at least one pre-seed or seed round deal in 2019. Alma Mundi Ventures lands the top spot; making 3 deals. The highest seed round reported – a $20 million funding round announced on Feb 27, 2019 by London-based financial services technology company Nivaura – saw participation from Transamerica Ventures.

2019 IN REVIEW

1. Allianz



4. Argo Ventures

5. Assurant


7. Avanta Ventures

8. Aviva



11. Clover Health

12. CUNA Mutual Group

13. EMC Insurance

14. Erie Insurance

15. FM Global

16. Grange Insurance

17. Helvetia Venture Fund


Ventures

19. MAIF Avenir


21. MetLife

22. MS&AD Ventures



25. RGA

26. RGAX

27. Santam Insurance

28. State Auto Labs


1 Deal

1. Cream City Venture Capital



4. MTech Capital

5. Prudential

2 Deals


3 Deals

18

37 insurer-investors made at least one Series A deal in 2019. MS&AD Ventures landed the top spot with 6 Series A deals. The highest seed round reported – a $110 million funding round announced on May 20, 2019 by Cambridge-based biotechnology company Thrive Earlier Detection – saw participation from BlueCross BlueShield Venture Partners.

2019 IN REVIEW

1. Allianz X

2. Swiss Life

3. Northwestern Mutual Future

Ventures


5. Matmut

6. EMC Insurance

7. Nationwide

8. FairVentures

9. Singlife

10. GIS Strategic Ventures

11. CMFG Ventures

12. Greenlight Re

13. Baloise Group

14. UNIQA Ventures





19. BNP Paribas Cardif

20. Legal & General



Ventures

23. The Co-operators

24. Manulife

25. Avanta Ventures


1 Deal

1. MTech Capital


3. AXA



6. Guardian

2 Deals

1. BlueCross BlueShield Venture Partners

2. Aviva Ventures

3. RGAX

3 Deals


4 Deals

1. MS&AD Ventures

6 Deals

19

48 insurer-investors made at least one Series B deal in 2019. Allianz X, Alma Mundi Ventures, Assurant Growth Investing, MassMutual Ventures, and SCOR shared the top spot; each making 3 Series B deals. The highest Series B round reported – a $125 million Series B round announced on Mar 6, 2019 by German digital insurer Wefox – saw participation from Alma Mundi Ventures.

2019 IN REVIEW

1. Munich Re/HSB

Ventures

2. Sirius International

Insurance Group

3. Cigna Ventures

4. Die Mobiliar

5. Dai-ichi Life

6. FM Global

7. BCBS Venture

Partners

8. Guardian

9. RGA

10. Guggenheim

Partners


12. Horizon Healthcare

Services

13. USAA

14. Avanta Ventures

15. Nationwide

Ventures

16. IAG

17. Ping An Global

Voyager Fund

18. Aviva Ventures

19. QBE Ventures

20. Liberty Mutual

Strategic Ventures

21. CMFG Ventures

22. MAIF Avenir

23. Starr Companies

24. AXA

25. Tokio Marine

26. Allianz

27. UNIQA Ventures

28. Axis Capital

29. Desjardins Venture

Capital

30. MTech Capital

31. Humana

1 Deal

1. MS&AD Ventures

2. Manulife

3. Argo Ventures

4. Prudential



7. NFP Ventures

8. XL Innovate

9. Liberty Mutual




2 Deals

1. SCOR



4. Allianz X


3 Deals

20

21 insurer-investors made at least one Series C deal in 2019. Dai-ichi Life landed the top spot with 4 Series C deals. The highest Series C round reported – a $250 million Series C round announced on Oct 7, 2019 by California-based digital commercial insurer Next Insurance – saw participation from Munich Re/HSB Ventures.

2019 IN REVIEW


2. Legal & General

3. Aflac

4. New York Life Ventures


6. Aviva Ventures

7. Argo Ventures


9. China Pacific Insurance Company

10. Ping An Ventures

11. Principal Financial Group

12. Transamerica



15. Intact Ventures

1 Deal

1. BlueCross BlueShield Venture Partners


3. Allianz

4. Northwestern Mutual Future Ventures

2 Deals


3 Deals

1. Dai-ichi Life

4 Deals

21

16 insurer-investors made at least one Series D deal in 2019. AXA Venture Partners, Cigna Ventures, and Ping An Global Voyager Fund shared the top spot with each making 2 Series D deals. The highest Series D round reported – a $300 million Series D round announced on Apr 11, 2019 by NYC-based digital, personal-lines insurer Lemonade – saw participation from Allianz.

2019 IN REVIEW

1. Legal & General

2. Hiscox

3. NFP Ventures

4. Chubb


6. Allianz X


8. Ping An

9. Allianz

10. Prudential

11. CMFG Ventures


13. Debeka

1 Deal


2. Cigna Ventures


2 Deals

22

Counting Exits

36 insurer-investors have seen at least one of their portfolio companies make an exit when analyzing companies that announced an investment round between 2015 to 2019.

Count of Exits by Insurer-Investors

1. Aflac2. AG2R La Mondiale3. Allianz4. Allianz X5. Alma Mundi Ventures6. Assurant Growth Investing7. Aviva Ventures8. AXA9. CSAA Insurance Group10. GIS Strategic Ventures11. Hiscox12. Humana13. IAG Firemark Ventures14. Intact Ventures15. John Hancock16. Legal & General Capital17. Liberty Mutual Strategic Ventures18. Matmut19. MetLife20. Munich Re/HSB Ventures21. NFP Ventures22. Starr Companies23. Sun Life Financial24. Swiss Life25. Swiss Re26. Transamerica Ventures27. USAA





2. MACIF Group


4. Prudential

5. BlueCross BlueShield

Venture Partners

1. MAIF Avenir

6 Exits

4 Exits

3 Exits

2 Exits

1 Exit

23

Insurer-Backed Exits

INSURER-INVESTOR

AflacAG2R La MondialeAllianzAllianz XAlma Mundi VenturesAmerican Family Insurance

American Family Ventures

Assurant Growth InvestingAviva VenturesAXAAXA Venture Partners

BCBS Venture Partners

CSAA Insurance GroupGIS Strategic VenturesHiscoxHumanaIAG Firemark VenturesIntact VenturesJohn HancockLegal & General CapitalLiberty Mutual Strategic VenturesMACIF Group

MAIF Avenir

MassMutual Ventures

MatmutMetLifeMunich Re/HSB VenturesNew York Life Insurance

NFP VenturesPrudential

Starr CompaniesSun Life FinancialSwiss LifeSwiss ReTransamerica VenturesUSAA

INVESTMENT ACQUIRER

NXT CapitalSeniorAdomArgus Cyber SecurityWealthsimpleQumramNetworked InsightsRingCozyKeen HomeOne IncXOR Data ExchangePrecisionLenderOpunEranoveEvercontactModern MessageOne IncAllayBeneStreamAutomaticMaxwell HealthIndio TechnologiesCirculationPocketbookAlert LabsWiseBanyanPod PointAugust HomeAmovensDRUSTLinxoMesDépanneurs.frSamboatSnipsStootieTravelCarOne IncRecorded FutureSolebitCARIZYHip MoneyRelayrEarnestSkycureIndio TechnologiesInforceProTrilogy EducationCoverWalletMaxwell HealthbexioBiovotionfairr.deAutomatic

ORIX USA CorporationThe Caisse des DépôtsElektrobitPower Corporation of CanadaDynatraceAmerican Family InsuranceAmazonCoStar GroupConnectM Technology SolutionsGreat Hill PartnersEarly Warning ServicesQ2ebankingThe John Lewis PartnershipEmerging Capital Partners (ECP)One More CompanyRealPageGreat Hill PartnersNovo BenefitsWorkers Benefit FundSirius XM RadioSun Life FinancialApplied SystemsLogisticareZip CoWatscoAxos FinancialÉlectricité de FranceASSA ABLOY GroupGoMoreContinentalCrédit AgricoleEngieDream Yacht CharterSonosCnovaPSA GroupGreat Hill PartnersInsight PartnersMimecastRenaultFrolloMunich ReinsuranceNavient CorporationSymantecApplied SystemsCovr Financial Technologies2U Inc.Aon plcSun Life FinancialDie MobiliarBiofourmisRaisinSirius XM Radio

DATE

07/01/1812/22/1611/03/17

01/24/2011/09/1712/14/17

02/27/1811/08/1807/01/19

02/20/2011/18/18

10/01/1906/04/1807/01/08

8/30/1601/22/20

02/20/2002/19/20

12/18/1904/27/1706/04/1812/04/19

9/18/1806/06/1610/10/18

03/04/1902/13/2010/19/17

03/02/1506/18/1901/29/20

11/23/1711/07/1811/20/1912/03/1802/07/19

02/20/2005/30/1907/31/1811/15/18

09/01/1909/04/1810/04/1707/11/17

12/04/1907/20/1704/08/19

11/20/1906/04/1807/05/18

11/19/1908/28/1904/27/17

$1B$68M

$510M

$115M

$44M$7.5M

$37.5M

$780M$100M

$300M$155M

$750M

$115M

PRICE

24

The Investments

25

A Competitive Landscape

87 percent of the total companies that were backed by insurer-investors between 2015 and 2019 are backed by a single insurer-investor. Companies like Snapsheet, Limelight Health and Cape Analytics land the top spots with each being backed by a total of 5 insurer-investors.

Note: The data collected to indicate the number of investors was cleaned to reflect an investor group – meaning AXA and AXA Venture Partners count as one investor group – AXA. The same goes for Transamerica and Transamerica Ventures etc. The next page indicated our ‘investor group’ mapping for applicable companies.

87% of companies are backed by 1 insurer-investor

Company Founded Headquarters Insurer-Investors

Snapsheet 2010 Chicago, IL

Limelight Health 2014 San Francisco, CA

Cape Analytics 2014 Mountain View, CA

Intact Financial Liberty MutualNationwideState AutoUSAA

AflacAXAMassMutualPrincipal FinancialTransamerica

CSAA Insurance GroupState AutoState FarmThe HartfordXL Innovate

26

Insurer-Investors - Condensed

AS IT APPEARS ON CRUNCHBASE:

Aetna VenturesAflac Corporate VenturesAllianz LifeAllianz Life VenturesAllianz XAlma Mundi VenturesAmerican Family InsuranceAmerican Family VenturesArgo VenturesAssurant Growth InvestingAvanta VenturesAviva FranceAviva VenturesAXA Venture PartnersBaloise Asset ManagementBaloise GroupBlue Cross and Blue Shield of MinnesotaBlueCross BlueShield Venture PartnersCigna VenturesCMFG VenturesCream City Venture CapitalFairVenturesGIS Strategic VenturesIAG Firemark VenturesIntact VenturesLegal & General CapitalLiberty Mutual Strategic VenturesMAIF AvenirMassMutual VenturesMS&AD VenturesMunich Re/HSB VenturesNationwide VenturesNew York Life InsuranceNew York Life VenturesNFP VenturesNorthwestern Mutual Future VenturesOpen CNPPing An Global Voyager FundPing An VenturesQBE VenturesRGAXState Auto LabsState Farm VenturesTransamerica VenturesUNIQA Ventures

EDITED TO:

AetnaAflacAllianzAllianzAllianzMapfreAmerican FamilyAmerican FamilyArgo GroupAssurantCSAA Insurance GroupAvivaAvivaAXABaloiseBaloiseBlueCross BlueShieldBlueCross BlueShieldCignaCUNA Mutual GroupNorthwestern MutualFairfax Financial HoldingsGuardianIAGIntact Financial CorporationLegal & GeneralLiberty MutualMAIFMassMutualMS&ADMunich ReNationwideNew York LifeNew York LifeNFPNorthwestern MutualCNP AssurancesPing AnPing AnQBE InsuranceRGAState AutoState FarmTransamericaUNIQA Group

27

If Perception is Reality

We’ve recently asked the Coverager Community to name their top ‘go-to’ corporate VC and three insurance startups they consider as ‘successful.’ The answers below are listed in alphabetical order.

GO-TO CVC

AllianzAmerican Family VenturesAXACUNA MutualLiberty MutualMassMutual VenturesMunich ReNationwideNorthwestern Mutual Future VenturesQBEState Auto Labs

“SUCCESSFUL” STARTUPS

Acko AP IntegoArityAsk KodiakAsurionBestowBetterviewBlendBold PenguinBoost InsuranceBranchBriteCoreCambridge TelematicsCape AnalyticsCarpe DataClearcover

CoterieCoverWalletDemystDataDocdocFabric TechnologiesFlyreelFRISSGulf States InsuranceHaven LifeHazardhubHealth IQHi MarleyHippoHugo InsuranceInsureonInsuritas

Intellect SEECJust Auto InsuranceKin InsuranceKineticLadderLemonadeLucepMakuSafeMatic InsuranceMetromileMetromileNext InsuranceODNOpenlyPing AnPlanck

Policybazaar.comPolicyPalRiskGeniusRootShift TechnologySlice LabsSnapsheetSpatialKeySureifyTheGuarantorsViewSpectionVouch InsuranceWefoxwilovZhongAn

The responses indicate that select CVCs do a better job at marketing and CVCs aren’t a primary ingredient for success as 57 percent of those startups deemed ‘successful’ aren’t backed by an insurer-investor.

28

2020

There were 33 percent less insurer-backed deals in Q1 2020 compared to previous year with the highest drop reported in March (52 percent less deals). Stated differently, there were approximately 53 active insurer-investors in Q1, 2019, while this year startups only ‘enjoyed’ participation from approximately 38 insurer investors.

Count of Insurer-Backed Deals

2019 2020

37

23

18 19

25

12

JAN FEB MAR

29

Final Thoughts

Some say that good data is actionable data. Well, great data is data that can make a difference. This report is filled with stats and figures. But one stat stands out as it confirms an ultra-competitive landscape and that is:

87 percent of the total companies that were backed by insurer-investors between 2015 and 2019 are backed by a single insurer-investor.

This reality places importance on getting to a startup first. And being first to invest or first to pilot or first to partner in an industry that loves to look back and/or look sideways shouldn’t be taken for granted.

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About

The OnRamp Insurance Conference brings together the insurance industry’s leading corporations, investors and startups. The conference highlights innovations disrupting the insurance industry, the leaders making such innovations possible and how new technologies and business models will reinvent the industry.

Coverager is the go-to source for insurance innovation that bothcreates and curates coverage on the most pressing topics relevant to insurance executives, focusing on areas such as technology, strategy and alternative distribution by offering custom research and analysis with a creative tone for companies that want to learn from the past and understand the present to better bet on the future.

Documents

THE INSURER INVESTOR...7 Profiling the Insurer Investor We analyzed 145 insurer-investors defined as an insurance carrier (e.g. Hiscox), or an insurer venture arm (e.g. CMFG Ventures),