Assured Allies, an insurtech company focused on retirement savings, announced today the closing of $42.5 million in Series B funding.
It’s a pretty significant Series B size given the challenging fundraising environment for insurtech companies noted by several of my colleagues in recent stories.
For example, Kyle Wiggers reported that investment into the sector fell in the fourth quarter of 2022 to its “lowest level since Q1 2020,” Anna Heim spoke with investors who are still hanging in there and Mary Ann Azevedo wrote about M&A exits, which insurtech led in 2021.
The round was co-led by FinTLV Ventures and existing investor Harel Insurance, which were joined by new and existing investors, including Lumir Ventures, Hamilton Lane, New Era Capital Partners, MS&AD Ventures, Core Innovation Capital, Poalim Equity, EquiTrust Life Insurance Co., Akilia Partners and Samsung Next. It brings the company’s total capital raise to $65 million.
The new funding follows a year where Assured Allies secured partnerships with several leading long-term care insurance carriers and saw 300% growth in the number of members using Assured Allies’ platform to, as co-founder and CEO Roee Nahir describes, “successfully age.”
He said as more Americans live longer and about 10,000 adults turn 65 every day, this means that more will need long-term care, an aspect of care that is well known as being a huge financial burden. Depending on the state you live in and the kind of care, the average cost for long-term care could start around $5,000 per month and go up from there.
Nahir and Afik Gal, a medical doctor, started Assured Allies in 2018 after their own experiences as caregivers to aging family members. The company uses technology like 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-at-home capabilities. It has been proven to reduce the cost of long-term insurance claims by roughly 20%, Nahir told TechCrunch. NeverStop, its second product, came 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 assets, but also have a lot of real hard problems, like depression and loneliness. While there are lots of companies out there with good solutions, few large insurance companies are addressing it, which is where Nahir feels Assured Allies stands out.
“I believe that part of the problem is that this population are the last adopters of new technologies and so the go-to market is challenging for these companies,” Nahir said. “In order to sell something to an 80-year-old user, you should have partnerships with 100-year-old companies. You need very strong staying power because people won’t trust you with a pension or a policy if they don’t know you.”
Nahir intends to deploy the new capital, which was secured this year, into further growth of Assured Allies’ products and expansion of the company’s carrier and partner network.
Assured Allies secures $42.5M Series B to help Americans ‘successfully age’ by Christine Hall originally published on TechCrunch
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Photo and Author: Christine Hall