A $1 Trillion Industry Is Under Siege From Startups - Berkshire Hathaway Inc. Common Stock (NYSE:BRK/A), Berkshire Hathaway Inc. New Common Stock (NYSE:BRK/B)

The insurance technology, or insurtech, industry is still in its infancy. But, a number of startups operating in this industry recently raised millions from top venture investors, according to a

report on CNBC

The report said such companies have "partnered with global incumbents, and are offering products and services including policy comparison services and peer-to-peer insurance." As such, these tiny groups of startups are set take on a $1 trillion industry.

CNBC, citing CB Insights, noted that investments in insurtech hit a new peak in the first quarter of 2016, with 47 companies getting funding.

"The corporates have gotten really active" doing deals in the space," said Anand Sanwal, CEO of CB Insights, which hosted a panel on insurtech companies in New York.

The report highlighted Embroke, which raised $14 million from venture investors including Canaan Partners, reducing clients' time on locating an insurer.

The report also put the spotlight on another budding concept on the insurtech horizon — peer-to-peer insurance, and noted the concept has managed to impress billionaires like Warren Buffett. Buffett's Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) is one of the reinsurance partners in peer-to-peer start-up Lemonade.

CNBC said Lemonade raised $13 million from venture investors Sequoia Capital and Aleph, with plans to unveil a business model after it gains regulatory approval.

"We are a full-stack insurance company," Lemonade CEO Daniel Schreiber said. "We're reinventing the very plumbing of insurance."

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