Meet 19 of the Hottest Insuretech Startups to Watch in 2023, Per VCs

Oct 03, 2023

The age-old insurance industry has long been battling upstarts promising to upend the sector.

The first wave of insurance tech startups birthed a bevy of now-public companies like Lemonade, Metromile, Hippo, and Root, many of whom are now struggling to justify valuations in the wake of creeping losses.

Despite this, 2022 was the second-best-ever year for European startups in the sector, raising $2.2 billion from investors, according to Dealroom data.

The second generation of insurtech startups plan on tackling some of the biggest issues facing underwriters in booming industries like pet insurance, giant sectors like climate risk, and newer areas like freight and automated vehicles.

In many categories, insurance tech offered smoother, digital alternatives to legacy players but arguably left much to be desired beyond an improved user experience for customers.

Now, VCs are much more focused on business fundamentals with startups prioritizing a strong underwriting business rather than growth at all costs. Naturally, a smoother customer experience remains top of mind for digital-first players but this list predominantly contains startups from more nascent or underserved markets.

Insider asked Europe's venture capitalists to pick out some of the insurance tech startups they expected to thrive in 2023.

Here are 19 European insurance tech startups to watch in 2023:

This article was originally published on May 23 and most recently updated on June 5.

What it does: Descartes Underwriting uses predictive data science techniques to assess the underlying drivers of natural catastrophes to provide better cover for those at the forefront of dealing with climate change.

Cited by these VCs: Jacob Bernstein, principal at Highland Europe

Why it's hot in 2023: "The insurance industry is threatened by climate change which is wreaking catastrophic destruction all over the world but which backward-looking, indemnity-driven models struggle to capture," Bernstein said. "This has contributed to a capacity crunch, higher prices, and more exclusions when already 60% of natural disaster losses are unprotected."

In the Highland Europe portfolio?: Yes

Total raised: $140.8 million

What it does: Bondaval offers "micro bonds" which digitize the credit risk underwriting process to help improve access to affordable trade credit.

Cited by these VCs: Jacob Bernstein, principal at Highland Europe

Why it's hot in 2023: "Amidst all the hype of consumer buy-now-pay-later financing products, B2B trade credit remains surprisingly inaccessible and clunky, with lengthy approval processes, tedious administration, and minimal availability for SMEs," Bernstein said.

"Under market conditions in which SMEs need all the liquidity they can get, Bondaval has an enormous opportunity in front of it."

In the Highland Europe portfolio?: No

Total raised: $23.5 million

What it does: Insurance startup Flock, used by the likes of DPD and Land Rover, offers fleet cover and uses telematics data to help companies identify safety risks and incentivize safer driving.

Cited by these VCs: Carolina Brochado, partner at EQT, and Andreas Ioannou, associate at Commerzventures.

Why it's hot in 2023: "Fleet insurers are stuck in the past with simplistic pricing models and legacy tech holding back the explosion of emerging sectors like next-day delivery, on-demand courier services, and flexible leasing," Ioannou said.

In the EQT portfolio?: No

In the Commerzventures portfolio?: Yes

Total raised: $59.4 million

What it does: Kita removes the "carbon delivery risk" from sellers and buyers in the carbon market, using insurance products that guarantee the quality and delivery of carbon units and carbon removal solutions.

Cited by these VCs: Judith Vogel, associate at Commerzventures

Why it's hot in 2023: "Climate change is accelerating and thus the risk of climate change-related impacts is also accelerating," Vogel said. "The risks will at some point be too large for 'risk' industries such as insurance to handle, which is a disaster as insurance is essential to rebuilding after crises such as natural disasters."

In the Commerzventures portfolio?: No

Total raised: $4.4 million

What it does: Ottonova is a German digital health insurer that enables customers to book doctors' visits through an app and offers discounted tariffs to ex-pats.

Cited by these VCs: Barbod Namini, partner at HV

Why it's hot in 2023: "Through its ever-expanding portfolio of products and its sticky – and growing – customer base, Ottonova has the potential of becoming a key player in the German health insurance space," Namini said.

In the HV portfolio?: Yes

Total raised: $175.7 million

What it does: Stockholm-based Insurely has built an open insurance platform that gives real-time insights into policy details and what's included within coverage. It also enables customers to gather all of their policies in one place.

Cited by these VCs: Barbod Namini, partner at HV

Why it's hot in 2023: "In the same way that open banking is shaking the banking sector by providing a completely new level of transparency, Insurely wants to shake up the insurance world by powering a transparent and modern insurance experience," Namini said.

In the HV portfolio?: No

Total raised: $24.3 million

What it does: London-based Loadsure offers data-driven insurance products to the cargo and freight industry.

Cited by these VCs: Ollie Richards, partner at MMC Ventures

Why it's hot in 2023: "Loadsure's data-driven business model plugs the gap in the B2B freight protection market," Richards said. "Operating in a large market ripe for change, Loadsure has achieved strong momentum into 2023."

In the MMC Ventures portfolio?: Yes

Total raised: $12.4 million

What it does: London-based life insurance startup YuLifehosts employee benefits, wellbeing, engagement, and rewards on a single platform. The company incentivizes healthy living through gamified challenges.

Cited by these VCs: Ben Kaminski, partner at Target Global

Why it's hot in 2023: "Life insurance is a topic that tends to be put off until a later date - after all, how delightful can speaking about the unthinkable really be?" Kaminski said.

"Despite this, YuLife embarked on a mission to change life insurance for good focusing on risk prevention by motivating and inspiring people to live healthier, happier lives in a fun and engaging way."

In the Target Global portfolio?: Yes

Total raised: $206.6 million

What it does: Munich-based Hakuna enables retailers to offer product insurance through an API. The company believes that offering product insurance is a sign of trust from a retailer and can help generate new revenue.

Cited by these VCs: Ben Kaminski, partner at Target Global

Why it's hot in 2023: "Product protection can oftentimes be a cumbersome endeavor with consumers, at times, completely foregoing any form of product protection due to the frictions they are faced with," Kaminski said. "By embedding insurance services directly at the point of sale, retailers offer their customers an immediate value add with little to no hassle."

In the Target Global portfolio?: No

Total raised: $5.5 million

What it does: Paris-based Dalma offers pet insurance and can provide reimbursements for vet expenses within 48 hours while also facilitating video calls between owners and veterinarians.

Cited by these VCs: Maxine Rior, principal at Northzone

Why it's hot in 2023: "The global pet tech space is currently experiencing massive tailwinds, with pet health becoming more important to pet parents and advances in veterinary care happening at record speed," Rior said. "We believe that insurance is key to unlocking true pet care, and that insurance penetration rates are set to increase across continental Europe, similar to what we've seen in the Nordics where over 90% of pets are insured."

In the Northzone portfolio?: Yes

Total raised: $18.8 million

What it does: Gaia offers insurance and payment products for IVF treatments. The company's plan covers users for up to six rounds of treatments and includes 12 counseling sessions and access to an embryologist.

Cited by these VCs: Maxine Rior, principal at Northzone

Why it's hot in 2023: "Gaia's offering is radically different to all other value propositions found in the fertility space, and could genuinely disrupt the largely unfair and inaccessible IVF market as we know it today," Rior said.

In the Northzone portfolio?: No

Total raised: $23 million

What it does: Hokodo offers a trade finance solution to B2B merchants which is backed by insurance

Cited by these VCs: Itxaso del Palacio, partner at Notion Capital

Why it's hot in 2023: "As the economy enters a more challenging period businesses focus much more on cash preservation and good cashflow management practices," del Palacio said.

"This is where Hokodo's insurance-backed trade finance solution will provide a game-changing product to both merchants and their customers alike as they navigate the economic downturn."

In the Notion Capital portfolio?: Yes

Total raised: $57 million

What it does: Justparent, which is still in private beta, is aiming to be the UK's first parental leave solution by offering SMEs benefits at an insured, fixed cost.

Cited by these VCs: Itxaso del Palacio, partner at Notion Capital

Why it's hot in 2023: "As employee diversity becomes a focal point for employers, Justparent gives them the ability to retain more talent by offering the best in class parental leave while protecting them from the financial and organizational challenges that this may imply," del Palacio said.

In the Notion Capital portfolio?: No

Total raised: n/a

What it does: Seyna's platform combines tailored insurance products and technology, allowing brokers to focus on their customers.

Cited by these VCs: Matthieu Lattes, general partner at White Star Capital

Why it's hot in 2023: "While many insurtechs focus on offering a direct product to consumers, Seyna is changing the game for brokers looking for an innovative solution to antiquated platforms," Lattes said. "With Seyna's recent entry into its first mass market, health insurance, expect to see them double that number of policyholders by the end of the year."

In the White Star Capital portfolio?: Yes

Total raised: $52 million

What it does: Napo provides pet owners with insurance products.

Cited by these VCs: Matthieu Lattes, General Partner at White Star Capital

Why it's hot in 2023: "Pet insurance has historically been one of the lowest penetrated insurance products, particularly when you consider how often a pet owner is likely to claim. With the increase in pet ownership following the pandemic, and rising pet ownership costs, we believe there is a huge opportunity to change this," Lattes said.

In the White Star Capital portfolio?: No

Total raised: $21.2 million

What it does: Alan is a leading French health insurance startup that works directly with companies to provide coverage to employees.

Cited by these VCs: Ara Yeromian, Managing Director at Teachers' Venture Growth (TVG)

Why it's hot in 2023: "We believe Alan will continue leading the innovation in the health tech and insurtech spaces, capitalizing on this new paradigm driven by the emergence of pre-trained AI models, such as LLMs," Yeromian said. "In fact, Alan has already successfully deployed AI tools across its operations, products, and services, while remaining customer-obsessed."

In the TVG portfolio?: Yes

Total raised: $543 million

What it does: ManyPets is a specialist pet insurer with operations in the UK, Sweden, and the US.

Cited by these VCs: Ara Yeromian, Managing Director at Teachers' Venture Growth (TVG)

Why it's hot in 2023: "With a focus and commitment on making pets feel better, ManyPets differentiates itself by going beyond a simple pet insurance product, building a full customer(pet)-first health and insurance service, dramatically improving the overall experience for both the pet and its owner," Yeromian said.

"With the secular growth in pet ownership and increased penetration of insurance among new generations of pet lovers, ManyPets has plenty of room to grow."

In the TVG portfolio?: No

Total raised: $483 million

What it does: Thinksurance is a Frankfurt-based commercial insurance distribution B2B platform that connects insurers and distributors such as brokers, agents, and banks.

Cited by these VCs: Lucile Cornet, partner at Eight Roads

Why it's hot in 2023: "Commercial insurance is a €33 billion market where only 1% of transactions are digital," Cornet said. "The processes are still highly manual, inefficient, and fragmented. The volume of premiums transacting on Thinksurance's platform has tripled in a couple of years, demonstrating the success of the platform."

In the Eight Roads portfolio?: Yes

Total raised: $39.1 million

What it does: Mitiga Solutions is a Barcelona-based climate risk modeling company that helps insurers and real estate owners to better account for climate risk.

Cited by these VCs: Lucile Cornet, partner at Eight Roads

Why it's hot in 2023: "With global warming and an increasing amount of 'black swan' events, the traditional models that insurers and real estate owners are using are no longer valid anymore," Cornet said.

"Mitiga allows banks and insurance companies to predict if a building will be at risk in 30 years or more with forest fires, ocean levels rising, and other extreme weather events – which is a critical component of valuation and portfolio construction for top tier finance and insurance companies."

In the Eight Roads portfolio?: No

Total raised: $4.7 million