Assured Allies, an insuretech company focused on retirement savings, today announced the closing of $42.5 million in Series B funding.
This is a very important Series B size given the challenging fundraising environment for insurtech companies mentioned by several of my colleagues in recent stories.
For example, Kyle Vigers reported that investment in the sector fell in the fourth quarter of 2022 to “the lowest level since the first quarter of 2020”, Anna Heim spoke with investors who are still hanging in there and Mary Ann Azevedo writes about the M&A exits affecting Incertec. Headed into 2021.
All told, the Assured affiliates join insurtech companies from around the world that recently managed to garner some decent funding including Equisoft, Naked Insurance, Turco and Acko.
The round was co-led by FinTLV Ventures and existing investor Harel Insurance, with new and existing investors including Lumir Ventures, Hamilton Lane, New Era Capital Partners, MS&AD Ventures, Core Innovation Capital, Polim Equity, Equitrust Life Insurance Company were involved. ., Aquila Partners and Samsung Next. This brings the company’s total capital raised to $65 million.
The new funding comes after a year where AssuredAllies secured partnerships with several leading long-term care insurance carriers and saw a 300% increase in the number of members using the AssuredAllies platform, according to co-founder and CEO Roi Nahir. Explains, “Age Successfully.”
He said that as more Americans live longer and about 10,000 adults turn 65 every day, that means more people will need long-term care, an aspect of care known to be a big financial burden. goes. Depending on the state you live in and the type of care you get, the average cost of long-term care can start around $5,000 a month and go up from there.
Nahir and Afiq Gal, a medical doctor, started Assured Companion in 2018 after their own experiences as caregivers to aging family members. The company uses technology such as machine learning and predictive analytics, along with science-of-aging and essential human support, to offer retirement products and programs.
Its first product, launched in 2020, was AgeAssured, which partners with long-term care insurers to reduce disability and support easier aging home capabilities. Nahir told TechCrunch that it has been proven to reduce the cost of long-term insurance claims by about 20%. Neverstop, its second product, arrives in 2022 and uses artificial intelligence and science to create and underwrite retirement products.
Nahir explained that there is an “aging economy paradox” where older Americans have accumulated $80 trillion in wealth, but they also have real hard problems like depression and loneliness. While there are a lot of companies out there that have good solutions, few large insurance companies are addressing this, which is where Nahir feels Assured Allies stands out.
“I believe part of the problem is that this population is the last population to adopt new technologies and therefore it is challenging for these companies to go to market,” Nahir said. “To sell something to an 80-year-old user, you must partner with 100-year-old companies. You need a lot of staying power because people won’t trust you with a pension or a policy if they don’t know you.
Nahir intends to utilize the new capital, which was secured this year, in further development of Assured Companion products and expansion of the company’s carrier and partner network.