The Future Of Insurance: Fintech 50 2022

Newfront Insurance cofounder and CEO Spike LipkinNEWFRONT

Reported by Jason Bisnoff and Jeff Kauflin

For insurtech companies, the past year has been full of challenges, more so than many other areas of fintech. Newly public businesses like home insurer Hippo, renters insurer Lemonade and auto insurer Root saw their stocks drop steeply amid concerns around profitability and weather-related losses. Funding for insurtech companies still grew in 2021– almost doubling from 2020 to reach $15 billion, according to CB Insights–but it expanded at a slower pace than the rest of fintech, which saw financing nearly triple over the same time period. Three insurtech companies made our Fintech 50 list this year, compared with six last year.

Yet some niches of insurtech continue to thrive. For example, Newfront is using technology to more efficiently sell and service business insurance and employee benefits, and last year it bought a 400-person insurance and financial services broker based in Northern California. As cyber threats and hacks proliferate, cyber insurance company Coalition grew its business from 28,000 customers at the end of 2020 to 130,000 one year later, and annual premium revenue hit $315 million last year, up from $56 million in 2020.

Here are the three insurtech companies that made the Fintech 50 in 2022:

Coalition


Combines cybersecurity insurance with proactive monitoring tools to help small and medium-sized businesses manage cyber risk. Backed by large insurers like Swiss Re and Lloyd’s of London, it provides up to $15 million of cyber insurance coverage in every U.S. state. With cyber-attacks a growing concern, Coalition’s annual premium revenue jumped to $315 million in 2021, up from $56 million in 2020.

Headquarters: San Francisco, California

Funding: $520 million from Index Ventures, T. Rowe Price, Durable Capital and others

Latest valuation: $3.5 billion

Bona fides: By the end of 2021, had hit 130,000 customers, compared with 28,000 the year prior.

Cofounders: CEO Joshua Motta, 38, a former CIA officer and Goldman Sachs investment banker; John Hering, 39.

Newfront Insurance


Five-year-old brokerage uses proprietary technology (along with human agents) to more efficiently sell and service business insurance and employee benefits, with revenue coming from traditional brokerage commissions. Its software allows application forms from multiple carriers to be automatically filled in with one set of answers. In August 2021, it merged with ABD, a 400-person insurance and financial services broker based in Northern California.

Headquarters: San Francisco, California

Funding: $300 million from Goldman Sachs, Founders Fund, Y Combinator and others

Latest valuation: $2.2 billion

Bona fides: 10,000 customers, including Coinbase and Airbnb; sold $2.3 billion of insurance in 2021.

Cofounders: CEO Spike Lipkin, 33, a veteran of Opendoor.com; CTO Gordon Wintrob, 31.

Next Insurance


Provides industry-tailored small business insurance policies (liability, auto, workers comp, etc.) online using artificial intelligence to process applications in 10 minutes and to offer 24/7 access to certificates of insurance and in-house claims support. Premium revenue reached $650 million in 2021, triple the level in 2020.

Headquarters: Palo Alto, California

Funding: $881 million from CapitalG, Ribbit Capital, Munich Re Ventures and others

Latest valuation: $4 billion

Bona fides: 300,000 small business customers, compared with 130,000 at the end of 2020.

Cofounders: CEO Guy Goldstein, 54; Alon Huri, 45; Nissim Tapiro, 51.

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