10 Best Insurtech for February 2026
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Market Overview & Selection Criteria
The insurtech sector is experiencing rapid evolution, blending insurance with cutting-edge technology to disrupt traditional models. ValueSense analysis highlights companies with strong revenue growth, high ROIC where applicable, and intrinsic value estimates suggesting potential undervaluation. These top insurtech stock picks were selected based on ValueSense quality ratings above 4.0, diverse market caps from micro-cap to large-cap, and metrics like revenue growth, FCF margins, and ROIC to identify educational opportunities in undervalued stocks. This watchlist focuses on insurtech firms showing growth potential amid sector consolidation, using intrinsic value comparisons for deeper stock analysis.
Featured Stock Analysis
Stock #1: Verisk Analytics, Inc. (VRSK)
| Metric | Value |
|---|---|
| Market Cap | $29.9B |
| Quality Rating | 7.4 |
| Intrinsic Value | $216.9 |
| 1Y Return | -24.5% |
| 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 robust Market Cap of $29.9B and a Quality rating of 7.4 from ValueSense, indicating strong fundamentals in the insurtech space. Despite a 1Y Return of -24.5%, its Intrinsic value of $216.9 suggests significant upside potential for value-focused analysis. The company generates $3,029.5M in Revenue with 7.3% growth, supported by impressive Free Cash Flow of $1,115.8M and a 36.8% FCF margin. High Gross margin at 69.6% and ROIC of 30.7% underscore operational efficiency, though Total Debt to Equity at 1,295.0% warrants monitoring. This positions VRSK as a mature player in data analytics for insurance, offering stability in volatile markets.
Key Catalysts
- Steady revenue growth of 7.3% with high FCF generation for reinvestment.
- Exceptional ROIC at 30.7% signaling efficient capital use.
- Strong gross margins 69.6% supporting scalability in insurtech analytics.
Risk Factors
- Elevated Total Debt to Equity ratio 1,295.0% could pressure finances in rising rate environments.
- Negative 1Y Return -24.5% reflecting recent market headwinds.
- Dependence on insurance sector cycles for revenue stability.
Stock #2: Guidewire Software, Inc. (GWRE)
| Metric | Value |
|---|---|
| Market Cap | $12.2B |
| Quality Rating | 7.2 |
| Intrinsic Value | $98.1 |
| 1Y Return | -33.5% |
| 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) features a $12.2B Market Cap and ValueSense Quality rating of 7.2, highlighting its role in insurtech software solutions. With an Intrinsic value of $98.1 and 1Y Return of -33.5%, the stock presents a case for recovery analysis. Revenue stands at $1,272.2M with robust 22.8% growth, paired with $286.0M Free Cash Flow and 22.5% FCF margin. Gross margin of 63.1% and ROIC of 11.5% reflect solid profitability, while manageable Total Debt to Equity at 45.9% adds to its appeal for diversified stock watchlists.
Key Catalysts
- High revenue growth 22.8% driven by demand for cloud-based insurance platforms.
- Positive FCF margin 22.5% enabling product development.
- Attractive gross margins 63.1% for sustained competitiveness.
Risk Factors
- Recent 1Y Return decline -33.5% amid software sector volatility.
- Moderate ROIC 11.5% compared to peers, signaling execution risks.
- Potential competition in insurtech SaaS space.
Stock #3: Lemonade, Inc. (LMND)
| Metric | Value |
|---|---|
| Market Cap | $6,526.5M |
| Quality Rating | 4.7 |
| Intrinsic Value | $12.0 |
| 1Y Return | 157.1% |
| 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), with a $6,526.5M Market Cap and Quality rating of 4.7, offers high-growth insights in AI-driven insurtech. Its standout 1Y Return of 157.1% contrasts with an Intrinsic value of $12.0, prompting valuation scrutiny. Revenue is $658.6M (33.5% growth), but Free Cash Flow is negative at $32.9M with -5.0% margin. Gross margin at 30.5% and negative ROIC -28.3% highlight scaling challenges, yet zero Total Debt to Equity provides flexibility for investment opportunities.
Key Catalysts
- Explosive 1Y Return 157.1% and revenue growth 33.5% from user adoption.
- Debt-free balance sheet (0.0% Total Debt to Equity) for agility.
- AI innovation potential in personalized insurance products.
Risk Factors
- Negative FCF and ROIC -28.3% indicating profitability hurdles.
- Low Quality rating 4.7 amid growth-stage risks.
- High volatility in consumer insurtech demand.
Stock #4: Oscar Health, Inc. (OSCR)
| Metric | Value |
|---|---|
| Market Cap | $3,753.0M |
| Quality Rating | 5.1 |
| Intrinsic Value | $20.1 |
| 1Y Return | -17.1% |
| 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) boasts a $3,753.0M Market Cap and 5.1 Quality rating, focusing on tech-enabled health insurance. Intrinsic value at $20.1 pairs with -17.1% 1Y Return, suggesting rebound potential. Massive $11.3B Revenue grows 37.4%, with $735.6M Free Cash Flow (6.5% margin), low Gross margin 21.2%, and stellar ROIC 92.4%. Total Debt to Equity of 66.8% is reasonable for best value stocks in healthcare-insurtech overlap.
Key Catalysts
- Exceptional revenue growth 37.4% and ROIC 92.4%.
- Positive FCF $735.6M supporting expansion.
- Health insurance tech demand amid regulatory shifts.
Risk Factors
- Negative 1Y Return -17.1% from market pressures.
- Thin gross margins 21.2% vulnerable to claims costs.
- Debt levels 66.8% in competitive healthcare space.
Stock #5: Clover Health Investments, Corp. (CLOV)
| Metric | Value |
|---|---|
| Market Cap | $1,144.3M |
| Quality Rating | 4.9 |
| Intrinsic Value | $1.9 |
| 1Y Return | -49.4% |
| 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 $1,144.3M Market Cap and 4.9 Quality rating, targeting Medicare Advantage with tech. Intrinsic value $1.9 reflects caution, with -49.4% 1Y Return. Revenue $1,773.6M grows 14.8%, but Free Cash Flow $86.4M shows -4.9% margin, Gross margin 21.2%, and ROIC -101.1%. Zero debt offers a clean slate for turnaround analysis in undervalued stocks.
Key Catalysts
- Steady revenue growth 14.8% in aging population markets.
- No debt (0.0% Total Debt to Equity) reducing leverage risks.
- Potential for AI-driven cost efficiencies.
Risk Factors
- Sharp 1Y decline -49.4% and negative ROIC -101.1%.
- Persistent FCF burn signaling operational issues.
- Regulatory risks in Medicare space.
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Stock #6: EverQuote, Inc. (EVER)
| Metric | Value |
|---|---|
| Market Cap | $808.2M |
| Quality Rating | 6.9 |
| Intrinsic Value | $86.2 |
| 1Y Return | 9.1% |
| 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) features an $808.2M Market Cap and high 6.9 Quality rating, excelling in insurance quoting platforms. Intrinsic value $86.2 indicates upside, with positive 9.1% 1Y Return. Revenue $644.7M surges 57.8%, Free Cash Flow $87.5M (13.6% margin), near-perfect Gross margin 96.8%, and top ROIC 301.4%. Minimal Total Debt to Equity 0.5% makes it a standout for stock picks.
Key Catalysts
- Blazing revenue growth 57.8% and ROIC 301.4%.
- Exceptional gross margins 96.8% from marketplace model.
- Positive FCF and 1Y Return for momentum.
Risk Factors
- Smaller market cap exposes to volatility.
- Dependence on insurance lead generation cycles.
- Competition from larger aggregators.
Stock #7: Roadzen, Inc. (RDZN)
| Metric | Value |
|---|---|
| Market Cap | $136.2M |
| Quality Rating | 5.5 |
| Intrinsic Value | $332.5K |
| 1Y Return | 25.2% |
| 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), a $136.2M Market Cap micro-cap with 5.5 Quality rating, shows explosive metrics like Revenue $12.1T and 26,020,855.0% growth. Intrinsic value $332.5K, 25.2% 1Y Return, but massive Free Cash Flow burn ($14.8T, -122.8% margin), Gross margin 64.6%, ROIC -65.4%, and negative Total Debt to Equity -17.8% highlight high-risk/high-reward insurtech stock analysis.
Key Catalysts
- Astronomical revenue growth 26,020,855.0% signaling hyper-scaling.
- Strong gross margins 64.6% in AI auto insurance.
- Positive 1Y Return 25.2% amid expansion.
Risk Factors
- Extreme FCF losses and negative ROIC -65.4%.
- Negative debt equity raising solvency questions.
- Micro-cap illiquidity and metric volatility.
Stock #8: Cheche Group Inc. (CCG)
| Metric | Value |
|---|---|
| Market Cap | $65.8M |
| Quality Rating | 4.4 |
| Intrinsic Value | $12.4 |
| 1Y Return | -11.3% |
| 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 a $65.8M Market Cap and 4.4 Quality rating, operating in Chinese insurtech. Intrinsic value $12.4, -11.3% 1Y Return, Revenue CN¥3,182.8M with -4.4% growth, negative Free Cash Flow (CN¥8,685.0K, -0.3% margin), low Gross margin 5.0%, ROIC -10.0%, and Total Debt to Equity 38.9% for emerging market exposure.
Key Catalysts
- Intrinsic value upside potential in China auto insurance.
- Manageable debt 38.9% for regional growth.
- Platform scalability in high-volume markets.
Risk Factors
- Declining revenue growth -4.4% and negative ROIC.
- Currency and geopolitical risks in China.
- Thin margins (5.0% gross) limiting buffers.
Stock #9: Health In Tech, Inc. (HIT)
| Metric | Value |
|---|---|
| Market Cap | $64.9M |
| Quality Rating | 6.3 |
| Intrinsic Value | $405.5K |
| 1Y Return | -81.2% |
| 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) sports a $64.9M Market Cap and 6.3 Quality rating, with standout Revenue $8,490.1B (42,873,585.9% growth), Free Cash Flow $2,682.6B (31.6% margin), Gross margin 60.6%, ROIC 14.1%, but Intrinsic value $405.5K and -81.2% 1Y Return flag volatility in health insurtech.
Key Catalysts
- Massive revenue surge 42,873,585.9% and positive FCF.
- Healthy margins (31.6% FCF, 60.6% gross).
- Low debt 0.9% for tech-health innovation.
Risk Factors
- Severe 1Y loss -81.2% indicating instability.
- Questionable intrinsic value scaling.
- Small cap risks in hyper-growth phase.
Stock #10: MoneyHero Limited Class A Ordinary Shares (MNY)
| Metric | Value |
|---|---|
| Market Cap | $42.7M |
| Quality Rating | 4.6 |
| Intrinsic Value | $13.0 |
| 1Y Return | 13.0% |
| 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) closes the list with $42.7M Market Cap, 4.6 Quality rating, Intrinsic value $13.0, and 13.0% 1Y Return. Revenue $69.2M declines -22.5%, Free Cash Flow $0.0 (0.0% margin), Gross margin 43.0%, ROIC -361.5%, low Total Debt to Equity 3.0% for financial comparison platforms.
Key Catalysts
- Positive 1Y Return 13.0% in competitive fintech-insurtech.
- Reasonable gross margins 43.0% for lead gen.
- Minimal debt aiding restructuring.
Risk Factors
- Revenue contraction -22.5% and abysmal ROIC -361.5%.
- Zero FCF signaling cash flow issues.
- Micro-cap exposure to market swings.
Portfolio Diversification Insights
These 10 best insurtech stocks span market caps from $42.7M (MNY) to $29.9B (VRSK), reducing concentration risk. Sector allocation leans heavily toward insurtech with healthcare crossovers (OSCR, CLOV, HIT), software (GWRE, EVER), and international plays (CCG, RDZN). High-quality leaders like VRSK (7.4 rating) balance speculative growth names like LMND (157.1% 1Y return) and EVER (301.4% ROIC). Pair stable FCF generators (VRSK, OSCR) with high-growth bets (RDZN, HIT) for diversified stock watchlist exposure, mitigating sector-specific downturns through varied revenue models and geographies.
Market Timing & Entry Strategies
Consider entry during insurtech sector dips, such as post-earnings volatility or broader tech pullbacks, when intrinsic values exceed current pricing (e.g., VRSK at $216.9 IV). Dollar-cost average into high-conviction picks like EVER or GWRE amid positive revenue growth trends. Monitor ROIC improvements and FCF positivity for scaling names like LMND or CLOV. Use ValueSense tools for real-time intrinsic value updates, focusing on positions with Quality ratings above 6.0 for lower-risk timing in investment ideas.
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FAQ Section
How were these stocks selected?
These top 10 insurtech stock picks were chosen using ValueSense criteria like Quality ratings, intrinsic value estimates, revenue growth, and ROIC, focusing on diversified undervalued stocks across market caps for educational stock analysis.
What's the best stock from this list?
EVER stands out with 6.9 Quality rating, 57.8% revenue growth, 301.4% ROIC, and positive FCF, making it a top performer in this insurtech watchlist for balanced growth analysis.
Should I buy all these stocks or diversify?
Diversification across VRSK-like stables and RDZN-like high-flyers reduces risk; allocate based on risk tolerance rather than holding the full set, per portfolio diversification insights.
What are the biggest risks with these picks?
Key concerns include high debt (VRSK), negative FCF/ROIC (CLOV, MNY), and volatility in micro-caps (RDZN, HIT), alongside sector regulation and growth sustainability.
When is the best time to invest in these stocks?
Optimal timing aligns with dips below intrinsic values (e.g., GWRE at $98.1 IV) or improving FCF trends, using market timing strategies like dollar-cost averaging for long-term investment opportunities.