8 Insurtech Startups to Watch in 2025

The insurance industry is quietly evolving, and a new wave of insurtech startups is leading the charge. These companies are blending technology with customer-focused solutions to simplify processes, enhance experiences, and make insurance more accessible. From AI-driven claims processing to personalized policies, they’re reshaping how we think about coverage. Here’s a look at eight insurtech startups worth keeping an eye on in 2025, each bringing something fresh to the table.

1. Next Insurance

Next Insurance is streamlining the way small businesses secure coverage. Its digital platform uses AI to deliver tailored policies quickly, cutting out the need for traditional brokers. Whether it’s general liability or workers’ compensation, Next makes the process fast and affordable. With a focus on simplicity and transparency, this Palo Alto-based startup is a go-to for entrepreneurs looking to protect their ventures without the hassle.

2. Lemonade

Lemonade has been turning heads with its tech-driven approach to home, renters, pet, and life insurance. Using AI and machine learning, it offers instant quotes and processes claims in record time—sometimes in seconds. What sets Lemonade apart is its social mission: unclaimed premiums are donated to nonprofits chosen by policyholders. Based in New York, this startup is proof that insurance can be both efficient and purpose-driven.

3. Coterie Insurance

Coterie Insurance is redefining insurance for small businesses by leveraging data analytics to provide customized coverage. Founded in 2018, it integrates with popular business software platforms, allowing owners to get policies in minutes. From general liability to professional liability, Coterie’s tech-first approach ensures speed and affordability. This Cincinnati-based startup is a rising star for its seamless partnerships with insurers and brokers.

4. Hi Marley

Hi Marley is transforming how insurers communicate with policyholders. Its AI-powered platform enables real-time, personalized interactions across channels like text and email, making customer service faster and more human. By prioritizing efficiency and connection, Hi Marley helps insurers build trust and loyalty. Headquartered in Boston, this startup is quietly revolutionizing the customer experience in insurance.

5. Acko

Acko, India’s first digital-only general insurance company, is making waves with its data-driven, personalized policies. Covering everything from vehicle to health insurance, Acko uses analytics to offer competitive rates and quick policy issuance. Its mobile-first platform caters to a tech-savvy generation, simplifying the entire insurance journey. Based in Mumbai, Acko is a leader in India’s fast-growing insurtech scene.

6. Bubble Insurance

Bubble Insurance is carving a niche in the U.S. by combining home and life insurance for homeowners. Using AI, it analyzes individual needs to recommend optimal coverage, delivering a fully digital experience. This personalized approach eliminates the guesswork, making insurance feel less daunting. Bubble’s focus on user-friendly solutions positions it as a startup to watch for those seeking tailored protection.

7. EvolutionIQ

EvolutionIQ is tackling claims processing with predictive analytics. Its platform helps insurers track productivity, detect fraud, and streamline operations, resulting in faster and more accurate settlements. By harnessing AI to analyze complex data, EvolutionIQ improves service delivery for both insurers and customers. This New York-based startup is gaining traction for its ability to modernize a critical part of the insurance process.

8. Ascend

Ascend is revolutionizing insurance payments with an all-in-one platform for financing, collections, and payables. By automating these processes, it frees up distributors to focus on growth while offering customers a smooth online checkout experience. Ascend’s scalable infrastructure is laying the groundwork for future innovations, making it a standout in the insurtech space. Based in San Francisco, it’s a startup with big potential.

Why These Startups Matter

These eight companies are more than just innovators—they’re addressing real pain points in the insurance industry. Whether it’s speeding up claims, personalizing policies, or improving communication, they’re using technology to make insurance less intimidating and more inclusive. As the insurtech market continues to grow, projected to reach $1.2 trillion by 2029, these startups are well-positioned to lead the way.

The beauty of insurtech lies in its ability to evolve with customer needs. These startups aren’t just disrupting the status quo; they’re building a future where insurance feels intuitive and empowering. Keep an eye on them—they’re setting the stage for what’s next.