PitchBook Analyst Note: Leveraging Technology to Revamp Health Insurance

This report was reuploaded on July 16, 2021.

How startups are revamping health insurance

Rising healthcare costs have created opportunities for startups to disrupt or offer technologies for the health insurance industry. These companies compete with existing players, provide cost-saving solutions for incumbents, or build marketplaces that help consumers purchase insurance for less.

Our latest Emerging Tech Research analyst note provides an overview of the health insurance technology landscape and discusses industry drivers, recent venture capital activity, and developing opportunities.

Takeaways include

• In 2020, VCs invested $2.9 billion across 90 deals into companies in this industry. Year-to-date, 30 health insurance tech startups have accrued $1.3 billion in funding.

• Notable venture deals of 2021 include CityBlock's $352 million Series C and Collective Health's $280 Series F. This year's exit activity counts public listings of Oscar, Clover Health, and Shuidi.

• Health insurance provider startups focus on identifying high-risk customers and developing plans for self-insured employees and lower-income populations.