Insurance: Heartcore Consumer Technology Trends 2021

Consumer neo-insurance companies are trading at astonishing multiples on the public market. 2020 was also a record year in terms of funding on the private markets.

Lemonade 84.5x | Shopify 39.7x | Zoom 32.7x| Airbnb 26.8x | Doordash 18.4x | Tesla 18.1x | Peloton 10.6x

Insurance is a fantastic category. An enormous market that is yet to move online, with notoriously low consumer satisfaction. A business model built around recurring revenues and high retention.

Market in EU/UK +US (Life & Non Life)

Online penetration in Europe

Industry NPS in Europe (second worst category before car rentals..)

Avg. yearly premium retention

Most radical attempts at innovating on the insurance model proved unsuccesful so far, with companies pivoting or shutting down.

Raised seed round from Sequoia in 2015 and launched on the vision of disrupting insurance though a P2P model. Blocked by regulators and forced to pivot to a traditional model.

Launched in the UK in 2011 on the vision of bringing “group buying” to insurance i.e. allowing members to get better prices on many products through buying in bulk. Later pivoted to become a traditional pet insurer.

Launched in the UK in 2013 with the vision of disrupting car insurance through a P2P model. Shut down in 2018.

Pioneered P2P insurance in Berlin in 2010, raised > $15M on this vision. Later pivoted.

Insurance feels like where banking was ~ 3 years ago.

Chime | 2013 | ~10M Customers

Revolut | 2015 | ~15M Customers

N26 | 2013 | ~7M Customers

Lemonade | 2015 | ~1M Customers

Root | 2015 | 300K Customers

Wefox | 2015 | ~350K Customers

There seem to be two schools of thought within new insurance companies: focusing on one vertical only and extending into non-insurance adjacent services or building a pure insurance play across all the needs of consumers.

We believe both models will produce very large outcomes.

• Monoline = Health

• Expanding within Health into doctors appointment or video consultation

• Monoline = Home

• Expanding within Home into repairs & maintenance

• Started in Home

• Expanded into Pets

•Started in Home

• Expanded into Cars, Pets, Smartphones, Health

In categories like electronics or home rentals, there's a growing trend towards seamlessly embedding insurance into the POS of other merchants-- just like Klarna or Affirm embedded financing. Some of our portfolio companies such as GetYourGuide and TravelPerk in travel, or Finn in automotive makes insurance disappear inside the core product/service brought by consumers.