Harel alternate investments manager Tomer Goldberg: We are convinced that Sproutt will be an important partner and player in the life insurance scene and look forward to seeing how it will provide personally tailored life insurance to customers who believe in a healthy lifestyle
The Israeli Sproutt insurtech startup, which offers digital life insurance to consumers in the USA, has
completed a 26 million dollar second round financing. The round was led by the Israeli MoreTech Ventures investment fund. Also participating were Harel Insurance, The Raptor Group, Falcon Edge Capital and the existing investors.
The company says that the capital raising comes following a year of accelerated growth for the company and for the insuretech market in general, during which there was increased demand for online purchasing of life insurance, at a time that the providers of physical services were closed as a result of the Corona epidemic, a trend which pushed consumers in the United States to adopt Sproutt’s digital service.
The money raised will be used by Sproutt to continue recruiting engineers and developing the company’s products, in order to expand the distribution channels to the general public in the USA, including the recently launched distribution platform via insurance agents and agencies.
Sproutt has developed a Quality of Life (QL) index based on adequacy tests of hundreds of thousands of customers, via which it determines how far the customer’s lifestyle reflects a healthy lifestyle, according habits of movement, eating, sleep, mental health and a balanced lifestyle in general. The higher the customer’s results and the healthier his lifestyle, so his risk is reduced and enables him to enjoy life insurance policies that reward a healthy lifestyle.
The unique index developed by the company is added for pricing purposes to the existing and well-known indexes of age, gender, weight, smoking and so on. In addition, the policy purchase process does not require a medical checkup, phone conversations or non-online meetings.
Harel alternate investments manager Tomer Goldberg: “Sproutt is at an important stage in its growth journey and we are pleased to be a part of it. We are convinced that Sproutt will be an important partner and player in the life insurance scene and look forward to seeing how it will provide personally tailored life insurance to as many customers as possible, particularly those who believe in a healthy lifestyle”.
According to Sproutt CEO Yoav Shoham and one of its founders: “Most people have at least one aspect of a lifestyle which is healthier than they are aware of. At Sproutt we are leveraging the index that we have developed in order to discover these healthy behaviors which everyone has and reward the insureds with better life insurance which reflects their lifestyle. The current round represents a vote of confidence in the company by the investors, who see how the insurance market is developing and believe in our vision of redefining what digital insurances can offer to those who prefer a healthy lifestyle”.
“The Corona epidemic has put a stop to the face-to-face sales process in the USA and has increased the need amongst 41 million Americans who need life insurance who were unable to purchase insurance because of the situation”, says Spoutt President Asaf Hankin, one of Sproutt’s founders. “Insurance agents started approaching us to receive access to our digital platform and we understood that we are able to fill the gap and assist a bigger segment of the public to receive personally tailored life insurances”.
MoreTech partner Sam Bernstein: “We see an opportunity to carry out a revolution in the way that life insurance is priced and in the way that is it is delivered to the customers via data analysis, real time issuing of insurance policies, cheaper insurance policies and long-term involvement with the users. Unlike home and car insurances, life insurance is a process which is long and slow, full of paperwork, during which big sections of the American public find themselves without insurance, with only partial insurance or paying expensive premiums. We are pleased to be supporting Sproutt and a company that is accelerating the insurance process with its unique products directly to consumers and agencies”.