Insurtech Company Ladder Raises $100 Million Round
As the “insturtech” industry continues to grow, one digital term life insurance company just closed a “megadeal” investment. This week, Ladder announced that it had raised $100 million. The Series D was co-led by led by Thomvest Ventures and OMERS Growth Equity. It comes as the company reports that it quadrupled its revenue last year and expects to issue $30 billion in coverage by the end of 2021.
The investment also arrives as Ladder recently issued its first policies through Ladder Life Insurance Company in a move that it says makes them the first fully digital life insurance company in operation. Other polices purchased through the platform have been offered by Fidelity Security Life Insurance Company, Allianz Life Insurance Company of New York, and Allianz Life Insurance Company of North America according to their FAQ. These policies are available through Ladder’s site, which utilizes proprietary technology and is “powered by ever-compounding machine learning models.”
In a statement regarding the future aspirations of Ladder, co-founder and CEO Jamie Hale said, “I know first hand how life insurance can change a life. With our carrier in operation and this new round of funding, we are in the position to greatly accelerate innovation in service of families and communities. I am so excited to see our original vision continue to materialize.”
As for what investors saw in the startup, Thomvest Ventures managing director Don Butler explained, “The world is only becoming more digital, not less, and the life insurance industry to-date has been slow to modernize. We are excited to invest in Ladder’s vision to build the digital life insurance company of tomorrow, and their announcement today that they are the first in operation shows that they are outpacing the industry.”
Of course, Ladders isn’t the only insurtech startup to gain prominence in recent years. Perhaps the most notable example is Lemonade, which specializes in renters insurance but has since expanded into other verticals. After raising several rounds including a $300 million Series D, Lemonade went public last year. As for other term life insurance platforms, Bestow has been a popular insurtech option, leading them to close both a $50 million Series B and $70 million Series C in 2020.
With Ladder’s vertical integration plans in motion and $100 million in their coffers to help fuel them, the company is certainly now among the largest insurtech firms to watch. Sadly, it’s also worth noting that the pandemic may also be raising awareness for term life insurance in general. As demand flows in, the need for easy-to-use solutions like Ladders grows as well. Therefore, don’t be surprised if other insurtech investments pick up steam going forward.