The insurtech industry is at the forefront of revolutionizing the traditional insurance landscape by integrating advanced technologies such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT). This transformation is driven by the need for innovative, convenient, and fair solutions that cater to evolving customer expectations. As these companies merge traditional insurance with cutting-edge technology, the results are impressive: streamlined processes, improved customer experiences, and enhanced risk management practices. In this article, we will explore three standout insurtech stocks: CCC Intelligent Solutions Holdings Inc. (CCCS), Oscar Health, Inc. (OSCR), and Root, Inc. (ROOT), which are leading the charge in reinventing the $7 trillion insurance industry.
The Growth of the Insurtech Industry
The insurtech industry is experiencing robust growth due to several factors, including economic expansion, advancements in technology, rising healthcare costs, demographic transformations, increasing cyber risks, and evolving customer expectations. These factors are fundamentally reshaping the insurance market, with insurtech companies leveraging technologies such as AI, ML, IoT, big data, and blockchain to enhance risk identification and mitigation, streamline processes, and improve customer experience. Specifically, AI is being utilized to optimize operations, personalize customer interactions, and maintain a competitive edge in the marketplace.
According to Statista, the insurance market in the United States is projected to reach a market size of $3.93 trillion by 2025. Additionally, the USA life and non-life insurance market is expected to achieve a net written premiums value of around $3.02 trillion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 6.9%. The global AI insurance sector is also expected to reach $141.44 billion by 2034, expanding at a CAGR of 33.1%. These statistics underscore the substantial opportunities present in the insurtech space, highlighting the potential for continued growth and innovation. Against this backdrop, CCC Intelligent Solutions Holdings Inc., Oscar Health, and Root, Inc. stand out as key players driving this transformation.
CCC Intelligent Solutions Holdings Inc. (CCCS)
CCC Intelligent Solutions Holdings Inc. (CCCS) provides Software as a Service (SaaS) solutions for the property and casualty insurance sector globally. The company’s cloud-based platform connects trading partners, facilitates commerce, and supports mission-critical, AI-enabled digital workflows across the insurance spectrum. This includes insurers, repairers, automakers, parts suppliers, and lenders, creating a seamless ecosystem that enhances efficiency and transparency. One significant development for CCCS was the acquisition of EvolutionIQ Inc. in January 2025, known for its AI-driven guidance platform for disability and injury claims management.
This acquisition extends CCCS’s reach into adjacent markets like disability and workers’ compensation and bolsters its SaaS platform with transformative AI capabilities. Another key collaboration is with Repairify, announced in November 2024, where the integration of Repairify’s ADAS-focused platform with CCC ONE® software aims to enhance repair precision, increase efficiency, and reduce cycle times for collision repair shops. Financially, CCCS showcased strong performance for the third quarter ending September 30, 2024, with revenues growing by 7.8% year-over-year to $238.48 million. The adjusted gross profit saw an 8% increase to $185.93 million, while the adjusted operating income rose by 10.3% to $91.19 million.
The company also reported a 9.5% increase in adjusted net income to $62.58 million, or $0.10 per share, and a 9.3% rise in adjusted EBITDA to $101.55 million. CCCS has provided an optimistic financial outlook, expecting fourth-quarter revenues between $242.50 million and $246.50 million and adjusted EBITDA of $103 million to $105 million. For the full fiscal year 2024, revenue is projected to be between $941 million and $945 million, with adjusted EBITDA seen at $394 million to $396 million. These robust financials are fortified by consensus forecasts, with analysts expecting CCCS’s EPS for the fourth quarter to increase by 8% year-over-year to $0.10, and revenue to grow by 7.2% year-over-year to $245.09 million.
Oscar Health, Inc. (OSCR)
Oscar Health, Inc. (OSCR) offers health insurance plans in individual and small group markets, while also providing reinsurance products. Leveraging its technology-driven platform, +Oscar, the company aids providers and payors in transitioning to value-based care. This approach not only delivers enhanced healthcare services but also streamlines administrative functions, thus ensuring better outcomes for both patients and providers. In November 2024, OSCR released affordable health insurance products through the ACA marketplace in New Jersey, tailored to meet personal preferences, high-quality networks, and technological solutions.
In the same month, OSCR further expanded into the greater Charlotte and Winston-Salem areas of North Carolina, bringing the Oscar experience to these regions through the ACA marketplace starting in 2025. This strategic expansion exemplifies Oscar Health’s intent to extend its innovative offerings to a broader audience, addressing diverse healthcare needs. Oscar Health’s financial performance has been remarkable for the nine months ending September 30, 2024, indicating a 53.1% increase in total revenue to $6.78 billion. The company reported $205 million in earnings from operations and a net income attributable to OSCR of $178.98 million, equivalent to an EPS of $0.65. Moreover, the adjusted EBITDA showed a significant 370% year-over-year increase to $311.88 million, underscoring the company’s robust growth trajectory.
Looking forward, analysts anticipate a 30.3% year-over-year increase in revenue to $2.79 billion for the first quarter of 2025, with an EPS growth of 2.4% to $0.64. OSCR’s shares have surged by 20.4% over the past month and 47% over the past year, reflecting investor confidence in the company’s sustained growth and strategic initiatives. This impressive performance, coupled with the company’s continuous innovation in healthcare delivery, positions Oscar Health as a prominent player in the insurtech landscape.
Root, Inc. (ROOT)
Root, Inc. (ROOT) offers a dynamic approach to car insurance by leveraging artificial intelligence and telematics to provide personalized insurance rates based on individual driving behavior. The company’s innovative model aims to reward safe driving while offering a more fair and transparent pricing structure compared to traditional insurers. Root utilizes its mobile app to collect data on driving habits and offers users real-time feedback on their driving performance, encouraging safer driving practices and helping to reduce accident risks. Root’s approach is particularly appealing to tech-savvy consumers who appreciate a data-driven, user-friendly pricing structure. This technology-driven model enables Root to offer competitive rates while fostering a culture of safety among its policyholders.
Financially, Root reported a strong performance for the third quarter ending September 30, 2024. The company’s revenues grew by 12% year-over-year to $172.56 million. The adjusted gross profit saw a 9.5% increase to $111.34 million, while the adjusted operating income rose by 8.8% to $48.15 million. Root also reported a notable 10.2% increase in adjusted net income to $27.68 million, or $0.08 per share, and an 11.3% rise in adjusted EBITDA to $60.77 million. Looking ahead, Root has provided a positive financial outlook, expecting fourth-quarter revenues between $175 million and $180 million and adjusted EBITDA of $65 million to $67 million. For the full fiscal year 2024, the company projects revenue between $650 million and $660 million, with adjusted EBITDA estimated at $230 million to $235 million. Analysts are optimistic about Root’s performance, forecasting a 9% year-over-year increase in EPS to $0.09 for the fourth quarter and a 10.5% rise in revenue to $177.54 million.
In conclusion, CCC Intelligent Solutions Holdings Inc., Oscar Health, and Root, Inc. represent some of the most innovative and impactful companies in the insurtech industry today. Their use of advanced technologies like AI, ML, and IoT to transform traditional insurance practices has not only driven financial success but has also set new standards for efficiency, customer experience, and risk management in the $7 trillion insurance industry.
