London Insurtech YuLife secures US$70mn in funding
London-based InsurTech YuLife has raised US$70mn in a Series B funding round as part of its initiative to “reinvent life insurance” and encourage people to live “healthier lifestyles”. The round of funding was led by the investment firm Target Global, and new investors Eurazeo and Latitude. Other participants included the company’s existing investors Creandum, Notion Capital, Anthemis, MMC Ventures, and OurCrowd.
YuLife says it plans to use the capital to develop new products, expand its reach into the UK market and expand to new global regions with a focus on Europe and North America. With this funding round, YuLife is now valued at US$346mn.
Why did YuLife raise the funding?
Explaining the reasons behind raising the funding, Ben Kaminski, Partner, Target Global, said: “With health and wellbeing increasingly thrust into the limelight in the wake of Covid-19, YuLife is fundamentally changing insurance by incentivising people to lead healthier lifestyles. YuLife is ideally positioned to build on its tenfold growth during the pandemic and lead the way in helping its clients respond to the challenges posed by an ever-changing working environment”.
In addition to all the features that traditional life insurance offers, YuLife also adds critical illness, income protection, virtual GP services, and employment assistance such as counselling and coaching to their policy. Sammy Rubin, Chief Executive Officer of YuLife, discusses more about what the company hopes to accomplish with the funding. “YuLife is harnessing the latest trends in data science, gamification, and AI to turn this model on its head and introduce a type of life insurance that inspires life”, he said. YuLife says it is doing this by offering rewards and discounts for completing daily wellness activities, ranging from walking and cycling to mindfulness and meditation.
Reinventing life insurance
Talking about the reinventing life insurance, Rubin added: “We are tapping into tech and introducing data analysts into our core team, in order to bring about the first major change in the way life insurance is envisioned since higher premiums were first introduced for smokers in the 1960s.
“By providing employers with a way to tangibly demonstrate care for their employees, YuLife’s group life insurance has a positive knock-on effect for businesses – boosting retention, reducing burnout, and increasing productivity while ensuring that employees are happier, healthier, and more engaged in the workplace”, Rubin said.
Currently, at 94 employees, YuLife now hopes to expand its employee numbers with the help of its funding round.
CB Insights: US Insurtechs Are Competing In A Global Market
In the first half of the year, insurtech companies around the world have raised US$7.4bn, nearly doubling their funding in Q2. According to Digital Insurance, insurtechs have raised US$4.8bn in Q2—an 89% increase in funding from Q1. But US firms are no longer the sole beneficiaries.
What Are the Stats?
Out of the 15 Q2 mega-rounds—those that top US$100mn—only eight included American firms. Pretty good, you might say. That’s over half! But US companies only made up 38% of the deals, which marks a 10% drop from Q1 and a 12% drop from 2020. Technically, therefore, US insurtechs are less influential than they’ve been in the past. But who says this is a bad development?
Despite my American citizenship, I’d argue that a more globally diverse insurance market is only for the best. Many of the world’s citizens who could most benefit from improved insurance services live outside of the States—and deserve local, tech-savvy services.
Why Does This Matter?
You’re always going to see the typical insurtech contenders from Western countries. For instance:
- German-based wefox: US$650mn Series C
- UK-based Bought By Many: US$350mn Series D
- US-based Collective Health: US$280mn Series F
But it’s critical that we address risk across the world. American insurtechs might be some of the most technologically skilled firms in the industry, but it’s not their first goal to address floods in Southeast Asia, crop destruction in China, and COVID complications in South Africa. That’s why we should celebrate that the recent Q2 round included insurtechs from 35 different countries.
According to CB Insights’ Q2 2021 Quarterly InsurTech Briefing, this was the first time that they’d observed insurtech activity in Botswana, Mali, Romania, Saudi Arabia, and Turkey. And ‘from a product, service, distribution, and underlying risk perspective, we—as a society and as an industry—are moving at an unprecedented speed’, says Dr. Andrew Johnston, Global Head of Willis Re InsurTech.
Just ask CB Insights. InsurTech value propositions have resonated with the world.