Category: insurtech

Investing in Ladder, the First Digital Life Insurance Company



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...)

Just raises $8M in its effort to beat Root at the car insurance game



Just Insure, a pay-per-mile insurance technology company, has raised $8 million in a funding round. 

CrossCut Ventures, ManchesterStory and Western Technology Investments co-led the investment, which brings its total raised to $15.3 million since its January 2019 inception.

Los Angeles-based Just says it uses telematics “to reward safe drivers and reduce insurer bias” by looking at factors such as how, when and where customers drive, rather than factors such as ZIP code or marital status as most traditional insurers do. Or put more simply, it charges customers only for miles driven and its rates vary based on driving behavior. This way, Just says it’s able to offer lower rates for “safer drivers,” and it claims to save its customers around 40% from their “previous auto insurance company.” For now, it’s only available in Arizona, although the company plans to expand to other markets such as Texas, Nevada, Pennsylvania, Ohio and Georgia.

Image Credits: Just Insure

Of course, Just is not the first company to offer personalized auto insurance. There’s Metromile, which launched its personalized pay-per-mile auto insurance in 2012. And there’s also Root Insurance, an Ohio-based car insurance startup that uses smartphone technology to understand individual driver behavior. Although there are similarities between Root and Just, there are also distinct differences, according to founder and CEO Robert Smithson.

Root charges customers a monthly fee, and when policies are renewed, the rate is subject to change based on driving behavior. Just has a similar model. If its drivers (Read more...)

Indonesia-based Rey Assurance launches its holistic approach to insurance with $1M in funding



Rey Assurance co-founders Bobby Siagian and Evan Tanotogono

Rey Assurance co-founders Bobby Siagian and Evan Tanotogono

Health insurance is the kind of thing people usually only think about only when they need it. Otherwise, their policies are just paperwork in their files or cards in their wallet. Indonesian insurtech Rey Assurance is taking a new approach. Once someone becomes a member, they also get access to a platform of health services, including AI-based self-assessment tools, 24/7 telemedicine consultations for no added fee and pharmacy deliveries. The startup is launching out of stealth today, having already raised $1 million in pre-seed funding from the Trans-Pacific Technology Fund (TPTF). 

Rey was founded this year by Evan Tanotogono, former head of digital channel at Sequis, one of Indonesia largest insurers, and Bobby Siagian, who held lead engineering roles at companies including Tokopedia and Sea Group. They are joined by insurance industry veteran David Nugrho as their chief business officer. 

They created Rey to address the low penetration of life and health insurance in Indonesia. “When you look at the root causes and pain points, you are looking at problems that are systemic here,” Tanotogono said. These include low awareness, expensive distribution channels like agents and telemarketing, high premiums and complicated policies.

“People feel like the product is really complex, the process is difficult and they don’t get the best value for the money. It’s been that way for many, many years,” he told TechCrunch. “We believe that we cannot just go into the market and digitize part of the (Read more...)

Startup insurance provider Vouch raises $90M, now valued at $550M



Vouch, a provider of business insurance to startups and high-growth companies, announced today it has raised $90 million in new funding.

The $90 million figure was raised across two rounds: a $60 million Series C co-led by SVB Capital (a subsidiary of Silicon Valley Bank) and Ribbit Capital that values the company at $550 million, and a previously unannounced $30 million Series B1 led by Redpoint Ventures.

With the latest financing, San Francisco-based Vouch has now raised a total of $160 million since its 2018 inception. Other investors include Allegis Group, Sound Ventures and SiriusPoint.

While there are many insurance technology companies out there that serve consumers, there are far fewer that offer it to companies, much less startups. Vouch describes itself as “a new kind of insurance platform” for startups that offers fully digital, “tailored coverage that takes minutes to activate.”

Over the past year, Vouch has seen impressive growth. The company declined to reveal hard revenue figures, but said it saw “7x” increase in its customer base year over year and currently protects over $5.7 billion in risk across thousands of policies. Today, Vouch has more than 1,600 clients, including Pipe, Middesk, Neighbor and Routable. It is also the “preferred” business insurance provider to the customers of Silicon Valley Bank, Brex, Carta and WeWork. Y Combinator too also refers Vouch to its portfolio companies. 

To Vouch co-founder and CEO Sam Hodges, the ability to attract some (Read more...)

Bangkok-based insurtech Sunday banks $45M Series B from investors like Tencent



Sunday, an insurtech startup based in Bangkok, announced it has raised a $45 million Series B. Investors include Tencent, SCB 10X, Vertex Growth, Vertex Ventures Southeast Asia & India, Quona Capital, Aflac Ventures and Z Venture Capital. The company says the round was oversubscribed, and that it doubled its revenue growth in 2020.

Founded in 2017, Sunday describes itself as a “full-stack” insurtech, which means it handles everything from underwriting to distribution of its policies. Its products currently include motor and travel insurance policies that can be purchased online, and Sunday Health for Business, a healthcare coverage program for employers. Sunday also offers subscription-based smartphone plans through partners.

The company uses AI and machine learning-based technology underwrite its motor insurance and employee health benefits products, and says its data models also allow it to automate pricing and scale its underwriting process for complex risks. Sunday says it currently serves 1.6 million customers.

The new funding will be used to expand in Indonesia and develop new distribution channels, including insurance agents and SMEs.

Insurance penetration is still relatively low in many Southeast Asian markets, including Indonesia, but the industry is gaining traction thanks to increasing consumer awareness. The COVID-19 pandemic also drove interest in financial planning, including investment and insurance, especially health coverage.

Other insurtech startups in Indonesia that have recently raised funding include Lifepal, PasarPolis, Qoala and Fuse.

In (Read more...)

Shepherd raises $6.2M seed round to tackle the construction insurance market



Shepherd, an insurtech startup focused on the construction market, has closed a $6.15 million seed round led by Spark Capital. The funding event comes after the startup raised a pre-seed round in February led by Susa Ventures, which also participated in Shepherd’s latest fundraising event.

Thinking broadly, Shepherd fits into a theme of neoinsurance providers selling more to other companies than to consumers. Insurtech startups serving consumers enjoyed years of venture capital backing only to find their public debuts met with early optimism followed quickly by eroding share prices.

But companies like Shepherd — and Blueprint Title earlier this week — are wagering on there being margin elsewhere in the insurance world to attack. For Shepherd, the construction market is its target, an industry that it intends to carve into starting with excess liability coverage.

The company’s co-founder and CEO, Justin Levine, told TechCrunch that contractors in the construction space have a number of insurance requirements, including general liability, commercial auto and so forth. But construction projects often also require more liability coverage, which is sold as excess or umbrella policies.

Targeting the middle-market of the construction space — companies doing $25 million to $250 million in projects per year, in its view — Shepherd wants to lean on technology as a way to help underwrite customers.

Levine said that his company’s offering will have two core parts. The first is what you expected, namely a complete digital experience for customers. The CEO likened its digital (Read more...)

Blueprint raises $16M Series B to grow its title-focused insurtech business



Blueprint Title, an insurtech startup working in the title insurance space, announced this morning that it closed a $16 million Series B. The new round was led by Forté Ventures. The startup previously raised an $8.5 million Series A in the final weeks of 2019.

While Blueprint is an insurtech startup and therefore fits into the neoinsurance cohort that we’ve tracked in recent quarters as a number of companies from the group have gone public, it’s somewhat distinct. Blueprint is different from the Roots and MetroMiles and Hippos that debuted via traditional IPOs or SPACs; it largely sells to business customers and has a very different product on offer.

The neoinsurance companies that went public in the last year and a half sell to consumers. Blueprint, in contrast, sells to professional groups looking for a better title insurance experience. That means its customer base is not made up of consumers hoping to cover their main residence, Blueprint CEO Steve Berneman told TechCrunch in an interview.

That means that the company’s go-to-market activities are distinct from its mates in the consumer-focused cohort and that its loss profile is very different.

Title insurance, Berneman said, has around a 1% to 4% claims rate, far lower than auto insurance, to pick an example. That means its risk profile is different, and its pricing less flexible; there’s less loss ratio to wring out of title insurance underwriting, so cost and delivery of service are (Read more...)

Insurify, a ‘virtual insurance agent,’ raises $100M Series B



How many of us have not switched insurance carriers because we don’t want to deal with the hassle of comparison shopping?

A lot, I’d bet.

Today, Insurify, a startup that wants to help make it easier for people to get better rates on home, auto and life insurance, announced that it has closed $100 million in an “oversubscribed” Series B funding round led by Motive Partners.

Existing backers Viola FinTech, MassMutual Ventures, Nationwide, Hearst Ventures and Moneta VC also put money in the round, as well as new investors Viola Growth and Fort Ross Ventures. With the new financing, Cambridge, Massachusetts-based Insurify has now raised a total of $128 million since its 2013 inception. The company declined to disclose the valuation at which the money was raised.

Since we last covered Insurify, the startup has seen some impressive growth. For example, it has seen its new and recurring revenue increase by “6x” since it closed its Series A funding in the 2019 fourth quarter. Over the last three years, Insurify has achieved a CAGR (compound annual growth rate) of 151%, according to co-founder and CEO Snejina Zacharia. It has also seen consistent “2.5x” year-over-year revenue growth, she said.

Insurify has built a machine learning-based virtual insurance agent that integrates with more than 100 carriers to digitize — and personalize — the insurance shopping experience. There are others in the insurtech space, but none that we (Read more...)

Indonesian D2C insurance marketplace Lifepal raises $9M Series A



Choosing an insurance policy is one of the most complicated financial decisions a person can make. Jakarta-based Lifepal wants to simplify the process for Indonesians with a marketplace that lets users compare policies from more than 50 providers, get help from licensed agents and file claims. The startup, which says it is the country’s largest direct-to-consumer insurance marketplace, announced today it has raised a $9 million Series A. The round was led by ProBatus Capital, a venture firm backed by Prudential Financial, with participation from Cathay Innovation and returning investors Insignia Venture Partners, ATM Capital and Hustle Fund.

Lifepal was founded in 2019 by former Lazada executives Giacomo Ficari and Nicolo Robba, along with Benny Fajarai and Reza Muhammed. The new funding brings its total raised to $12 million.

The marketplace’s partners currently offer about 300 policies for life, health, automotive, property and travel coverage. Ficari, who also co-founded neobank Aspire, told TechCrunch that Lifepal was created to make comparing, buying and claiming insurance as simple as shopping online.

“The same kind of experience a customer has today on a marketplace like Lazada—the convenience, all digital, fast delivery—we saw was lacking in insurance, which is still operating with offline, face-to-face agents like 20 to 30 years ago,” he said.

Indonesia’s insurance penetration rate is only about 3%, but the market is growing along with the country’s gross domestic product thanks to a larger middle-class. “We are really at a tipping point for GDP per capita and a lot (Read more...)