Traditional banks are now warring with the rapid and prolific rise of financial tech startups committed to disrupting every facet of the financial industry. Stephen Bird, of Citigroup, says that “together, they represent perhaps the No. 1 threat facing large banks today.”
Just as FinTech is disrupting the banking industry, “InsureTech” is transforming the insurance industry. Low favorability and mistrust of traditional insurance companies have provided a wide opening for new companies to leverage big data and new digital technologies to upend the insurance industry. Most insurers are still tied to complicated business models based on pooling risk. By offering simplicity, transparency, and friendliness, new InsureTech startups are gaining quick traction. In 2014, InsureTech Startups raised just $800 million in funding, but in 2015, that number shot up more than three times that to $2.6 billion.
Our team has researched the rise of Texas InsureTech companies, who have collectively raised $25.23 million in just their last round of funding in 2016. Read our upcoming ‘Texas Sector Report: FinTech 2016″ to see our comprehensive analysis of how InsureTech companies are disrupting the insurance landscape. Below we have highlighted some of these companies intent on revolutionizing the insurance industry in Texas.