PolicyMe, a digital-first insurance provider on a mission to deliver simple and affordable insurance for Canadian families, has raised C$18m in Series A funding.
New investors, RGAX, Securian Financial and SiriusPoint, joined existing investors, HCS Capital and Westdale Properties, in the raise.
A Tier 1 Canadian bank rounds out the $18m equity and debt financing which was raised in a series of tranches over the last year.
Founded in 2018, PolicyMe was founded by Andrew Ostro, Laura McKay and Jeff McKay, who experienced first hand the inefficiencies that existed across the traditional life insurance valuation chain through their years in the insurance and tech industries.
At inception, the company first tackled distribution with the initial launch of its coverage calculator and price comparison platform, and then launched a fully underwritten digital product in March of last year with Canadian Premier Life Insurance Company.
By eliminating inefficient underwriting and distribution costs, the digital-first product is priced 10 to 20% lower than most traditional offerings.
Furthermore, PolicyMe said that 84% of its customers purchased policies without having to complete a medical exam, with most customers being able to apply and secure their policy in 20 minutes or less.
PolicyMe said the funding will accelerate its development of a comprehensive suite of products that will be distributed via direct-to-consumer and B2B2C channels across large membership and employee groups.
The InsurTech will also be launching its embedded solution later this year with two of Canada’s leading FinTechs, ahead of several other launches earmarked for Q1 and Q2 2023.
Andrew Ostro, CEO of PolicyMe, said, “Our proprietary technology allows us to automate many aspects of the life insurance value chain while still staying close to the customer and personalizing their experience.
“As a result, we believe we have built the best term life insurance platform in Canada, and are excited to continue pushing the industry forward with our innovative products, strong partnerships, and new distribution channels.”
Last year, PolicyMe partnered with Canadian Premier Life Insurance Company to help Canadians buy life insurance digitally.
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