Join NexChange - the professional
network for the financial services
industry - and receive a free one-
year subscription to Forbes
Silicon Valley is hot for insurance tech, and Google is leading the way
Insurance may be not be the sexiest area of finance but it certainly seems to be doing something for Silicon Valley where investors are courting disruptive start-ups, and internet giants like Google are looking for a piece of the action.
Back in June, CBInsights reported that 2015 was already a record year for insurance tech investment with for $832 million being pumped into the space. That's a 9X increase from five years ago, accounting for more than a third of the $2.12 billion raised by insurance tech companies since 2010.
A more recent report shows that Google in particular has been doubling down in this space, signing off six separate partnerships and investments in insurance tech just this year. Its biggest deals include the firm's own Google Compare service, an auto insurance comparison platform launched in March in partnership with CoverHound and Compare.com. But it goes beyond that.
Google has backed three firms in the medical insurance space, via its investment units Google Ventures and Google Capital, the most recent being Collective Health. It has also partnered with home insurers Liberty Mutual and American Family Insurance through its internet-of-things product line Nest.