(Image source: Sproutt.)
Sproutt, a New York-based life insurance distribution startup focusing on the wellness of the applicant and policyholder, has announced a $26m Series B round led by MoreTech Ventures (Tel Aviv) with investment from Harel Group (Ramat Gan, Israel), The Raptor Group (Boston), and Falcon Edge Capital (New York), alongside existing investors. The announcement says the funds will be used to further bring Sproutt’s health-incentivizing instant-issue life insurance policies direct to customers and agents. The funds will also be used to roll out a new predictive life insurance product, developed from hundreds of thousands of data points gathered from Sproutt’s customer base, according to the announcement.
Sproutt characterizes its consumer proposition as departing from the standard of the traditional life insurance industry which primarily penalizes individuals for negative elements of their lifestyles. Sproutt says its policies also take into account the positive elements of each individuals’ lifestyle. The company’s Quality of Life Index (QLI) assesses behaviors that reflect healthy living—movement, sleep, emotional health, nutrition, and overall lifestyle balance—to personalize the policy for each customer based on their individual QL score. The higher the customer’s QL score, the lower their risk. This allows customers with high QL scores to get personalized life insurance policies that reward them for the healthy behaviors in their lifestyle following a simple 15 minute digital process.
“Most people have at least one aspect of their lifestyle that is healthier than they think—whether it be how they sleep, how much they move, or what they eat,” comments Yoav Shaham, CEO & Co-Founder, Sproutt. “At Sproutt, we are leveraging the QLI we’ve developed to discover the hidden healthy behaviors that exist in each person and reward them with the best possible life insurance to reflect their lifestyle. This investment is a huge vote of confidence in Sproutt from investors that see how the market is changing and believe in our vision to redefine what life insurance can do for those who prioritize healthy living.”
Tailored Life Insurance Products
As a complement to its direct-to-consumer sales model, the company recently launched a dedicated Agent Platform, enabling U.S.-licensed insurance sellers to offer Sproutt’s life insurance policies. “The pandemic threw a wrench into the process of face-to-face sales for insurance sellers, widening the ‘needs gap’ of 41 million Americans needing but lacking life insurance,” comments Assaf Henkin, President & Co-Founder, Sproutt. “When brokers started approaching us requesting access to our tailored life-insurance policies, we knew we could fill this gap and help a large segment of the population gain access to quality policies.”
“We see a huge opportunity to revolutionize the way life insurance is priced and delivered to customers through data analytics, real-time policy issuance, cheaper coverage and long-term user engagement,” comments Sam Bernstein, Partner, MoreTech Ventures. “Unlike auto and home, life insurance is a largely paper driven and slow-moving process in which large parts of society find themselves uninsured, underinsured, or paying expensive premiums. We are excited to be supporting Sproutt as it accelerates its unique offering directly to consumers and agencies.”
“Sproutt has achieved strong product/market fit and great momentum by addressing the flaws in the way traditional life insurance has been designed and sold historically,” says Peter Monaco, Managing Director, Raptor Group. “By using their Quality of Life Index Platform to reward healthy behaviors in individuals, Sproutt is able to offer a more personalized product offering to customers. Raptor Group prides itself on supporting companies with disruptive visions that deliver improved value to consumers and we look forward to helping accelerate Sproutt’s mission to do just that.”
“Sproutt is at an exciting stage of their growth journey, and we are thrilled to be a part of it,” comments Tomer Goldberg, Managing Director, Harel Technolgy investments, Harel Insurance and Finance Group. “We are confident that Sproutt will be an important partner and player in the evolution of the life insurance landscape, and eagerly anticipate seeing how they can bring wellness-centric life insurance to as many customers as possible.”