Brella Insurance raises $15m in series A funding round
Brella Insurance, the 2019 disru ptive insurtech startup that offers supplemental health benefits, has completed its Series A funding round and generated $15m in new capital.
Leading the round was Brewer Lane Ventures and Fidelity Security Life Insurance, along with SymphonyAI, Digitalis Ventures, Two Sigma Ventures, New York Life Ventures and Founder Collective.
Currently Brella Insurance ‘s supplemental plan covers more than 13,000 conditions and pays cash on diagnosis so that customers can use it for anything they need while they are having treatment and recovering.
US health insurance
A recent study shows 60% of Americans would have to borrow to pay an unexpected $1,000 bill. Yet the average working American has a $1,644 health insurance deductible and a $4,000 annual out-of-pocket max (Source: KFF Employer Health Benefits Survey 2020). So the harsh reality is that an unexpected health issue will almost certainly lead to financial distress for people who have health insurance. It's no wonder 33% of Americans delayed healthcare in 2020 over concerns about cost.
Speaking about the investment and Brella’s expansion strategy, Brewer Lane Ventures Founder and Managing Partner, John Kim, said health insurance is a significant financial burden for American workers, even when they have employer-sponsored insurance. He explained that Brella's combination of technology and insurance plan innovation uniquely positions it to meet this need with broad distribution through employers, brokers, and strategic partnerships.
Brella’s founder and CEO, Veer Gidwaney, explained, “Even with great health insurance, health issues can be expensive. At Brella, we’re on a mission to build a world where health hardships don’t create financial burdens. We’ve reinvented supplemental health insurance with a redesigned plan that is a better compliment to your health insurance than the traditional accident and critical illness policies.”
Gidwaney said the company had made “significant progress” in bringing its modern supplemental health insurance product to market. The new financing will fuel nationwide expansion and alliances with leading benefits brokerage firms and strategic partners.
“This is yet another important milestone in our journey towards building our vision of a world where health hardships don’t create financial burdens,” he added.
With the investment round, the company has so far raised $22m. The latest funds will be used to continue the development of Brella’s health solution.
Akur8’s US$30mn Series B to fuel US and APAC expansion
Still a relatively new company in the sector, Akur8’s progress since it was founded in 2018 has been characterised by cutting-edge tech, strategic growth, and a highly personable approach that clearly demonstrates the youthful innovation of insurtech itself.
The company strives to embody four key values:
- Challenging a status quo that doesn’t benefit customers
- “Disrupt the known, organise the unknown”
- Provide artificial intelligence (AI) tech with a distinctly human edge
- Create solutions that will endure the test of time
At the heart of Akur8’s business is its Transparent AI solution. Capable of empowering actuaries and pricing teams through better, faster decision making, the insurtech touts it as “the only solution that automates rate modeling while keeping full transparency and control.”
Transforming insurance pricing
In just two years, Akur8 has acquired over 30 customers in 10 countries - including high-profile insurers like Munich Re, Tokio Marine Kiln, AXA, and Generali - and established additional offices in London and New York. Now, the company is keen to develop its business in the US’ verdant insurance market and build its presence in APAC.
“The BlackFin team is thrilled to see Akur8 continue to spread its wings and deploy its next generation pricing platform across insurance carriers worldwide,” said Julien Creuzé, Partner. “We have built a great relationship with the Akur8 management team and it’s a pleasure to welcome new investors and continue this journey with them.”
Guillaume Beraud-Sudreau, Co-Founder and Chief Actuary at Akur8, added, “We are humbled by the trust that our clients and investors have placed in Akur8. Building the future of insurance pricing powered by Transparent AI has been our goal since the first day of R&D. Now this vision has become reality and we can’t wait to accelerate our growth to become the global reference in insurance pricing.”
Cover image source: Akur8