In insurtech 2.0, tech is a driving force — a tide lifting all boats — rather than just a tech sales angle. While the 1.0 cohort’s heavy focus on the top-line proved a poor fit for insurance, the 2.0 generation sticks to what has worked historically: accurate risk assessment, assiduous pricing, and a focus on loss ratio — balanced against still-ambitious growth goals. (Credit: Shutterstock) In insurtech 2.0, tech is a driving force — a tide lifting all boats — rather than just a tech sales angle. While the 1.0 cohort’s heavy focus on the top-line proved a poor fit for insurance, the 2.0 generation sticks to what has worked historically: accurate risk assessment, assiduous pricing, and a focus on loss ratio — balanced against still-ambitious growth goals. (Credit: Shutterstock)

A reckoning is here. After more than a decade of capital-fueled growth, the tech industry is undergoing retrenchment and a sea change in the way startups are measured and valued. This sudden shift came as a shock to operators, VCs, and rank-and-file employees alike.

Looking back specifically at the insurtech industry in early 2021, when much of tech was flying high, the public markets began punishing a handful of leading insurtechs for their extravagant growth strategies and wayward paths to profitability. The similar business models of these early insurtechs, and their similar fates over the past two years, suggest a grouping that deserves a name: insurtech 1.0.

 

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