Eleos Life Enters US Market with Embedded Insurance APIs

Eleos Life has entered the United States market through partnerships with mutual insurance corporation Assurity and global reinsurer SCOR. 

The UK-based insurtech provides embedded insurance products through application programming interfaces (APIs), which allow third-party platforms to integrate insurance offerings directly into their existing digital infrastructure.

The company has secured licensing in 41 states plus the District of Columbia. Its products target credit unions, banks and fintech companies seeking to offer insurance services to their customers without developing underwriting capabilities in-house.

Industry data indicates that fewer than 30% of Americans hold individual term life insurance policies. 

Term life insurance provides temporary coverage for a specified period, typically 10 to 30 years, and pays beneficiaries if the policyholder dies during the coverage term. Individual disability insurance coverage stands at approximately 18% of the population.

The disability insurance market in the United States is valued at US$127bn with compound annual growth rate of 11.69%. 

The addressable market comprises 161 million employed individuals, of whom only 18% currently hold individual disability insurance policies.

API integration reduces implementation barriers

Eleos Life's embedded insurance model allows partner organisations to integrate life and disability insurance products through white-label solutions. 

White-labelling enables companies to rebrand and offer services developed by third parties as their own products. Partners can implement the insurance offerings within seven days, with some configurations possible within 24 hours.

The company manages regulatory compliance requirements for partner organisations, eliminating setup costs and reducing implementation workload. 

This approach addresses traditional barriers to insurance distribution, including limited accessibility and consumer awareness.

The insurtech provides remote primary care services and mental health therapy as standard policy benefits. Remote primary care offers 24-hour access to medical professionals through video and text communication, including prescription services. 

Mental health therapy provides structured counselling sessions lasting 50 minutes, available seven days per week between 8am and 10pm.

Market opportunity targets protection gap

The total addressable market for term life insurance encompasses 65 million households with single or primary breadwinners, representing an estimated US$15bn market opportunity. 

Current individual coverage rates indicate a protection gap affecting millions of households with insufficient financial reserves.

Employer-provided insurance benefits can be unreliable due to coverage limitations and potential loss when employees change jobs. Individual policies provide consistent coverage independent of employment status.

Eleos Life's API-based distribution model generates recurring monthly revenue for partner organisations while providing customers access to insurance products through familiar digital platforms. 

Customers can complete applications and manage policies entirely online without telephone interactions.

Partnership strategy leverages reinsurer backing

SCOR's participation provides reinsurance capacity for Eleos Life's US operations. Reinsurance involves insurers transferring portions of risk to other insurance companies to manage exposure and maintain capital requirements.

Brian Barnes, VP Partnerships at SCOR, says the partnership aligns with the reinsurer's strategy for advancing insurance industry solutions. 

"We are excited to partner with Eleos Life as they launch their innovative term life insurance products in the U.S.," Barnes says. "Eleos has demonstrated success in the U.K. by providing accessible and essential financial protection through their digital platforms."

Barnes adds that the partnership supports SCOR's mission to advance solutions in the insurance sector. 

"Their innovative approach to embedding insurance seamlessly into consumer journeys aligns with SCOR's mission to advance forward-thinking solutions in the insurance industry," he says.

Kiruba Shankar Eswaran, CEO of Eleos Life, says the company addresses insurance uptake challenges through simplified distribution methods. 

"With the low uptake of life and disability insurance, we've created a straightforward way for companies to distribute these essential protections," Eswaran says. 

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