The information: US-based Insurtech Sure secured a $100 million Series C funding spherical, giving it a $550 million valuation, per TechCrunch.
More on Sure:
- The insurtech launched as a software program as a service platform in 2016 to present monetary establishments and fintechs with digital insurance coverage infrastructure.
- Its service modernizes and digitizes the whole insurance coverage worth chain so purchasers can supply prospects a digital expertise with out paperwork or human interactions.
- Using Sure’s API lets purchasers carry new insurance coverage merchandise to market faster and cheaper. Its purchasers embrace Chubb, Revolut, Betterment, and Farmers Insurance.
- Without disclosing arduous income figures, Sure reported it has been worthwhile since 2019 and has grown its annual recurring revenues by threefold yearly.
What’s subsequent: With the recent funding, Sure plans to develop in Europe, Latin America, and Asia, the place it needs to open new places of work. It may even improve its answer to additional streamline the method of embedding insurance coverage and plans to triple its engineering workforce as a end result.
Why this may succeed: Insurance merchandise supply fintechs a terrific extra income stream on their highway maps to profitability, and incumbent insurers are feeling the warmth from modern insurtechs—two components that may assist increase Sure’s consumer base.
- The US market worth of embedded insurance coverage is predicted to develop from $5 billion in 2020 to $70.7 billion in 2025, per Lightyear Capital.
- Adding insurance coverage companies to their product suites helps fintechs diversify their income streams and earn predictable month-to-month charges.
- And as fintech giants like neobank Revolut and robo-advisor Betterment—which Sure already counts amongst its purchasers—transfer into product traces like insurance coverage, different fintechs will observe go well with to stay aggressive and supply customers a one-stop store for managing their funds.
- Meanwhile, insurance coverage incumbents are being threatened by insurtechs like Lemonade, which ended 2020 with greater than 1 million prospects, compounding incumbents’ want for extra modern insurance coverage merchandise—particularly as buyer satisfaction stagnates. Sure may help them rapidly launch options like digital claims administration to stay aggressive.