Insurtech Ladder raises another $10m for expansion
California-based insurtech startup Ladder as secured $10 million strategic investment from Allianz Life Ventures and Northwestern Mutual Future Ventures.
The investment extends Ladder's Series B funding to a total of $40 million and will be used to continue to fund growth, specifically hiring of engineers, marketers, and product-focused teams.
Founded in 2015, Ladder has designed a digital-first life insurance product and has raised a total of $54 million in funding from investors, including RRE Ventures, Canaan Partners, and Lightspeed Venture Partners.
The company aims “to close the $16 trillion coverage gap that exists in the US because of ‘stuck’ shoppers (LIMRA)” but is also focused on evolving the industry overall, including removing unnecessary complexity.
Ladder has expanded to 49 states and DC and is in the process of filing in the state of New York. To-date, the company has placed over $1 billion of coverage.
"We've been increasingly impressed with the innovations Ladder is bringing to the market," said Emily Reitan, vice president of strategy and business development for Allianz Life. "Life insurance is a critical component of any solid financial plan, and both Allianz Life and Ladder share the common goal of ensuring Americans have the proper protection in place to help meet their financial goals."
Many customers want to buy life insurance online, but won't wait (an average of) 8 weeks to get a decision and won't accept that they can't easily change their coverage whenever they need to, according to Ladder. The firm is using technology, design thinking, behavioural economics, and machine learning to make the process as seamless as possible for consumers.
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