10 Best Insurtech for January 2026
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Market Overview & Selection Criteria
The insurtech sector continues to evolve with digital transformation in insurance, blending technology and financial services to disrupt traditional models. This collection highlights 10 insurtech stock picks analyzed using ValueSense's proprietary metrics, focusing on companies showing potential undervaluation based on intrinsic value calculations compared to market caps. Selection criteria emphasize Quality rating above 4.0, revenue growth trajectories, ROIC efficiency, and FCF generation as key indicators of business health. Stocks were drawn from ValueSense data screening for insurtech themes, prioritizing diversified market caps from large-cap stability (e.g., $31B) to high-growth micro-caps. This educational analysis frames opportunities in undervalued insurtech stocks, using metrics like intrinsic value, margins, and debt levels for balanced evaluation without implying recommendations.
Featured Stock Analysis
Stock #1: Verisk Analytics, Inc. (VRSK)
| Metric | Value |
|---|---|
| Market Cap | $31.0B |
| Quality Rating | 7.4 |
| Intrinsic Value | $213.3 |
| 1Y Return | -19.2% |
| Revenue | $3,029.5M |
| Free Cash Flow | $1,115.8M |
| Revenue Growth | 7.3% |
| FCF margin | 36.8% |
| Gross margin | 69.6% |
| ROIC | 30.7% |
| Total Debt to Equity | 1,295.0% |
Investment Thesis
Verisk Analytics, Inc. (VRSK) stands out with a strong Quality rating of 7.4, reflecting robust financial health in the insurtech analytics space. Its intrinsic value of $213.3 suggests significant undervaluation relative to market dynamics, supported by $3,029.5M in revenue and impressive $1,115.8M free cash flow. High gross margin at 69.6% and FCF margin of 36.8% underscore operational efficiency, while ROIC of 30.7% indicates superior capital allocation despite a high Total Debt to Equity of 1,295.0%. Recent 1Y Return of -19.2% may present an entry for value-focused analysis, with steady 7.3% revenue growth providing stability in data-driven insurance solutions.
This positioning highlights VRSK's role in providing analytics for risk assessment, potentially benefiting from insurtech digitization trends. ValueSense metrics reveal a company with proven profitability amid sector volatility.
Key Catalysts
- Exceptional ROIC 30.7% driving efficient returns on invested capital
- Strong FCF generation $1,115.8M supporting reinvestment or shareholder returns
- High gross margin 69.6% indicating pricing power in analytics services
- Consistent revenue base $3,029.5M with moderate 7.3% growth
Risk Factors
- Elevated Total Debt to Equity 1,295.0% increasing financial leverage exposure
- Negative 1Y Return -19.2% signaling short-term market pressures
Stock #2: Guidewire Software, Inc. (GWRE)
| Metric | Value |
|---|---|
| Market Cap | $16.3B |
| Quality Rating | 7.2 |
| Intrinsic Value | $98.5 |
| 1Y Return | 10.7% |
| Revenue | $1,272.2M |
| Free Cash Flow | $286.0M |
| Revenue Growth | 22.8% |
| FCF margin | 22.5% |
| Gross margin | 63.1% |
| ROIC | 11.5% |
| Total Debt to Equity | 45.9% |
Investment Thesis
Guidewire Software, Inc. (GWRE) earns a solid Quality rating of 7.2, positioning it as a leader in insurtech software solutions. With a Market Cap of $16.3B and intrinsic value at $98.5, the stock appears undervalued for growth-oriented investors. Revenue reached $1,272.2M with 22.8% growth, backed by $286.0M FCF and a healthy FCF margin of 22.5%. Gross margin of 63.1% and ROIC of 11.5% reflect scalable cloud-based platforms, though Total Debt to Equity at 45.9% warrants monitoring. Positive 1Y Return of 10.7% adds momentum to this analysis.
GWRE's focus on policy administration software aligns with insurtech's shift to digital platforms, offering long-term scalability per ValueSense evaluations.
Key Catalysts
- Robust revenue growth 22.8% fueling expansion in software subscriptions
- Positive FCF $286.0M enabling R&D and market penetration
- Strong gross margin 63.1% from high-margin SaaS model
- 1Y Return 10.7% indicating market recognition
Risk Factors
- Moderate ROIC 11.5% compared to peers, suggesting capital efficiency room
- Debt levels (45.9%) potentially sensitive to interest rate shifts
Stock #3: Lemonade, Inc. (LMND)
| Metric | Value |
|---|---|
| Market Cap | $5,437.7M |
| Quality Rating | 5.0 |
| Intrinsic Value | $24.2 |
| 1Y Return | 108.7% |
| Revenue | $658.6M |
| Free Cash Flow | ($32.9M) |
| Revenue Growth | 33.5% |
| FCF margin | (5.0%) |
| Gross margin | 30.5% |
| ROIC | (28.3%) |
| Total Debt to Equity | 0.0% |
Investment Thesis
Lemonade, Inc. (LMND) carries a Quality rating of 5.0, highlighting growth potential in AI-driven insurtech despite challenges. Market Cap stands at $5,437.7M, with intrinsic value of $24.2 pointing to undervaluation. Explosive 1Y Return of 108.7% contrasts with negative FCF of $32.9M and FCF margin of 5.0%, amid $658.6M revenue and 33.5% growth. Gross margin at 30.5% and negative ROIC -28.3% reflect scaling investments, bolstered by zero Total Debt to Equity. This profile suits analysis of high-growth disruptors in digital insurance.
LMND's bot-powered model targets rapid customer acquisition, per ValueSense data emphasizing revenue acceleration.
Key Catalysts
- Stellar 1Y Return 108.7% from market enthusiasm
- Strong revenue growth 33.5% in premium expansion
- Debt-free balance sheet (0.0% Total Debt to Equity)
Risk Factors
- Negative FCF -$32.9M and FCF margin -5.0% straining cash runway
- Poor ROIC -28.3% indicating profitability hurdles
Stock #4: Oscar Health, Inc. (OSCR)
| Metric | Value |
|---|---|
| Market Cap | $3,833.8M |
| Quality Rating | 5.2 |
| Intrinsic Value | $21.3 |
| 1Y Return | 10.5% |
| Revenue | $11.3B |
| Free Cash Flow | $735.6M |
| Revenue Growth | 37.4% |
| FCF margin | 6.5% |
| Gross margin | 21.2% |
| ROIC | 92.4% |
| Total Debt to Equity | 66.8% |
Investment Thesis
Oscar Health, Inc. (OSCR) scores a Quality rating of 5.2, blending healthcare insurtech with $3,833.8M Market Cap and intrinsic value of $21.3. Massive $11.3B revenue grew 37.4%, generating $735.6M FCF (6.5% margin), though gross margin is 21.2%. Exceptional ROIC of 92.4% shines, tempered by 66.8% Total Debt to Equity and modest 1Y Return of 10.5%. ValueSense metrics position OSCR as a high-ROIC play in health insurance tech.
Key Catalysts
- High ROIC 92.4% signaling efficient operations
- Strong FCF $735.6M from scaled revenue $11.3B
- Impressive revenue growth 37.4%
Risk Factors
- Low gross margin 21.2% in competitive healthcare
- Debt exposure 66.8% amid growth investments
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Stock #5: Clover Health Investments, Corp. (CLOV)
| Metric | Value |
|---|---|
| Market Cap | $1,240.8M |
| Quality Rating | 5.2 |
| Intrinsic Value | $1.6 |
| 1Y Return | -23.0% |
| Revenue | $1,773.6M |
| Free Cash Flow | ($86.4M) |
| Revenue Growth | 14.8% |
| FCF margin | (4.9%) |
| Gross margin | 21.2% |
| ROIC | (101.1%) |
| Total Debt to Equity | 0.0% |
Investment Thesis
Clover Health Investments, Corp. (CLOV) has a Quality rating of 5.2, with $1,240.8M Market Cap and low intrinsic value of $1.6 amid $1,773.6M revenue (14.8% growth). Negative FCF (-$86.4M, -4.9% margin) and ROIC -101.1% highlight challenges, matched by low gross margin 21.2% but zero debt. 1Y Return of -23.0% underscores volatility in Medicare Advantage insurtech.
Key Catalysts
- Steady revenue growth 14.8% in healthcare segment
- Clean balance sheet (0.0% Total Debt to Equity)
Risk Factors
- Deep negative ROIC -101.1% and FCF -$86.4M
- Weak 1Y Return -23.0%
Stock #6: EverQuote, Inc. (EVER)
| Metric | Value |
|---|---|
| Market Cap | $937.9M |
| Quality Rating | 6.9 |
| Intrinsic Value | $86.7 |
| 1Y Return | 25.6% |
| Revenue | $644.7M |
| Free Cash Flow | $87.5M |
| Revenue Growth | 57.8% |
| FCF margin | 13.6% |
| Gross margin | 96.8% |
| ROIC | 301.4% |
| Total Debt to Equity | 0.5% |
Investment Thesis
EverQuote, Inc. (EVER) boasts a Quality rating of 6.9, $937.9M Market Cap, and high intrinsic value of $86.7. $644.7M revenue surged 57.8%, with $87.5M FCF (13.6% margin) and standout gross margin 96.8%, ROIC 301.4%. Minimal 0.5% Total Debt to Equity and 25.6% 1Y Return make it a standout in insurance quoting platforms.
Key Catalysts
- Exceptional ROIC 301.4% and revenue growth 57.8%
- Near-perfect gross margin 96.8%
- Positive FCF and 1Y Return 25.6%
Risk Factors
- Smaller market cap exposing to volatility
Stock #7: Roadzen, Inc. (RDZN)
| Metric | Value |
|---|---|
| Market Cap | $177.1M |
| Quality Rating | 5.4 |
| Intrinsic Value | $321.4K |
| 1Y Return | -4.8% |
| Revenue | $12.1T |
| Free Cash Flow | ($14.8T) |
| Revenue Growth | 26,020,855.0% |
| FCF margin | (122.8%) |
| Gross margin | 64.6% |
| ROIC | (65.4%) |
| Total Debt to Equity | (17.8%) |
Investment Thesis
Roadzen, Inc. (RDZN) holds a Quality rating of 5.4, tiny $177.1M Market Cap, and unusual intrinsic value $321.4K. Massive $12.1T revenue and 26,020,855.0% growth contrast with -$14.8T FCF (-122.8% margin), gross margin 64.6%, negative ROIC -65.4%, and -17.8% debt. 1Y Return -4.8% reflects high-volatility insurtech scaling.
Key Catalysts
- Extreme revenue growth 26,020,855.0% signaling hyper-scaling
- Solid gross margin 64.6%
Risk Factors
- Huge negative FCF (-$14.8T) and ROIC -65.4%
- Negative debt ratio -17.8%
Stock #8: Health In Tech, Inc. (HIT)
| Metric | Value |
|---|---|
| Market Cap | $93.1M |
| Quality Rating | 6.3 |
| Intrinsic Value | $422.1K |
| 1Y Return | -66.5% |
| Revenue | $8,490.1B |
| Free Cash Flow | $2,682.6B |
| Revenue Growth | 42,873,585.9% |
| FCF margin | 31.6% |
| Gross margin | 60.6% |
| ROIC | 14.1% |
| Total Debt to Equity | 0.9% |
Investment Thesis
Health In Tech, Inc. (HIT) rates 6.3 in Quality, $93.1M Market Cap, intrinsic value $422.1K. Enormous $8,490.1B revenue (42,873,585.9% growth), $2,682.6B FCF (31.6% margin), gross margin 60.6%, ROIC 14.1%, low 0.9% debt. Sharp -66.5% 1Y Return suggests rebound potential in health tech insurtech.
Key Catalysts
- Massive revenue growth 42,873,585.9% and positive FCF
- Healthy FCF margin 31.6% and ROIC 14.1%
Risk Factors
- Steep 1Y Return decline -66.5%
Stock #9: Cheche Group Inc. (CCG)
| Metric | Value |
|---|---|
| Market Cap | $69.0M |
| Quality Rating | 4.4 |
| Intrinsic Value | $12.5 |
| 1Y Return | -7.9% |
| Revenue | CN¥3,182.8M |
| Free Cash Flow | (CN¥8,685.0K) |
| Revenue Growth | (4.4%) |
| FCF margin | (0.3%) |
| Gross margin | 5.0% |
| ROIC | (10.0%) |
| Total Debt to Equity | 38.9% |
Investment Thesis
Cheche Group Inc. (CCG) has Quality rating 4.4, $69.0M Market Cap, intrinsic value $12.5. CN¥3,182.8M revenue with -4.4% growth, negative FCF (CN¥8,685.0K, -0.3% margin), low gross margin 5.0%, ROIC -10.0%, 38.9% debt. 1Y Return -7.9% in Chinese insurtech space.
Key Catalysts
- Reasonable intrinsic value $12.5 vs. small cap
Risk Factors
- Declining revenue growth -4.4% and negative ROIC
- Low gross margin 5.0%
Stock #10: MoneyHero Limited Class A Ordinary Shares (MNY)
| Metric | Value |
|---|---|
| Market Cap | $53.4M |
| Quality Rating | 4.6 |
| Intrinsic Value | $11.3 |
| 1Y Return | 13.6% |
| Revenue | $69.2M |
| Free Cash Flow | $0.0 |
| Revenue Growth | (22.5%) |
| FCF margin | 0.0% |
| Gross margin | 43.0% |
| ROIC | (361.5%) |
| Total Debt to Equity | 3.0% |
Investment Thesis
MoneyHero Limited Class A Ordinary Shares (MNY) scores Quality rating 4.6, $53.4M Market Cap, intrinsic value $11.3. $69.2M revenue (-22.5% growth), $0.0 FCF (0.0% margin), gross margin 43.0%, deeply negative ROIC -361.5%, low 3.0% debt. Positive 13.6% 1Y Return offers contrarian insurtech angle.
Key Catalysts
- Recent 1Y Return gain 13.6%
- Attractive intrinsic value $11.3
Risk Factors
- Revenue contraction -22.5% and extreme ROIC -361.5%
- Zero FCF generation
Portfolio Diversification Insights
These 10 insurtech stock picks span market caps from $31.0B (VRSK) to $53.4M (MNY), offering diversification across established analytics (VRSK, GWRE), high-growth insurers (LMND, OSCR), and micro-cap innovators (RDZN, HIT). Sector allocation leans heavily toward insurtech software 40%, health insurance tech 30%, and quoting platforms 20%, reducing single-subsector risk. High-ROIC names like EVER 301.4% complement steady growers like VRSK, while debt-free profiles (LMND, CLOV) balance leveraged plays. Cross-referencing shows synergy: pair VRSK's data strength with GWRE's software for core holdings, adding speculative growth from LMND/OSCR for upside. This mix supports portfolio diversification analysis in volatile insurtech.
Market Timing & Entry Strategies
Consider positions during earnings seasons or sector dips, monitoring revenue growth and FCF trends via ValueSense screeners. For large-caps like VRSK, watch debt metrics amid rate changes; growth names like LMND suit momentum pullbacks. Use intrinsic value gaps (e.g., EVER's $86.7) for entry signals, scaling in on 1Y Return reversals. Educational strategy: allocate 5-10% per stock, rebalancing on Quality rating shifts.
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FAQ Section
How were these stocks selected?
These insurtech stock picks were selected using ValueSense criteria like Quality rating >4.0, intrinsic value metrics, revenue growth, and ROIC, focusing on insurtech themes for diversified stock watchlist analysis.
What's the best stock from this list?
EVER stands out with top ROIC 301.4%, 57.8% revenue growth, and high intrinsic value $86.7, though all warrant individual stock analysis based on risk tolerance.
Should I buy all these stocks or diversify?
Diversification across market caps and subsectors (e.g., VRSK stability + LMND growth) reduces risk; analyze portfolio allocation rather than concentrating in one.
What are the biggest risks with these picks?
Key concerns include negative FCF (e.g., LMND, CLOV), high debt (VRSK), and volatility in micro-caps (RDZN, HIT), alongside sector competition.
When is the best time to invest in these stocks?
Monitor intrinsic value discounts, positive 1Y Return shifts, or earnings beats; use ValueSense tools for timing on undervalued stocks to buy.