There are a few times in an investor’s life when you experience a once-in-a-generation opportunity. We believe that this type of opportunity exists in the life insurance industry. That’s why we are excited to announce our investment in the first fully-digital life insurance company, Ladder. Thomvest Ventures has led a $100mm Series D financing in the company together with OMERS Growth Equity.
When we began researching how the insurance industry might enter the digital era, we were struck by the lack of consumer-direct life insurance brands akin to what GEICO or Progressive have built in the auto industry. As we interviewed incumbents in the life insurance industry, we were struck by the conventional wisdom that “life insurance is sold, not bought.” As consumers increasingly shift their purchase behaviors online, however, it feels like this adage is beginning to show its age. In much the same way that the travel industry has moved online over the last two decades, we believe that the life insurance industry is undergoing a similar transformation. At the end of this transformation, we expect to see Ladder as one of the leading household names in life insurance.
To put this digital transformation into perspective, the 2020 Insurance Barometer Study found that 29% of U.S. consumers they surveyed would prefer to buy their life insurance online, a trend that has been growing steadily. And yet, less than 10% of policies researched online are purchased online. Ladder is enabling this process to happen for consumers in a way (Read more...)