Insurtech Ethos launches with $11.5m in financing

New life insurer Ethos has started operating in the US with $11.5 million in financing led by Sequoia Capital.

Other participating investors include Stanford University, Arrive, a subsidiary of Roc Nation, Robert Downey Jr.’s Downey Ventures, Kevin Durant’s Durant Company, Will Smith’s Smith Family Circle, and a credit facility from Silicon Valley Bank.

Ethos uses technology and predictive analytics to modernize the life insurance process and align products with what families want and need during critical times in their lives, the company claims. The insurer is licensed in 49 states and has already processed thousands of applicants for life insurance coverage, according to the firm. Ethos is co-founded by Peter Colis and Lingke Wang, who together previously co-founded Ovid Life, a life insurance marketplace.

The $11.5 million investment will be used to accelerate the company's growth and enhance product development. Sequoia Partner Roelof Botha will join the board of directors.

“Ten million new individual life policies are sold annually in the US, and Peter and Lingke have identified the opportunity to modernize their delivery and packaging for the next generation,” said Roelof Botha, partner at Sequoia.

Ethos claims that the process for getting a life insurance policy through the company is fast, easy and inexpensive. Most people can apply and qualify for a policy after a ten-minute application versus the ten weeks it takes through a more traditional process, according to a company statement. The firm also offers non-commissioned licensed agents to give customers guidance. More than 99 percent of Ethos customers have required no medical exam or blood test to get a policy, the company said.

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