YuLife has made a name for itself in the UK home market for its new way of arranging life insurance: yes, sell a policy that provides financial security to your people in the event of your death; But do it by focusing on improving the policyholder’s current life with the opportunity for wellness and encouraging its use with gamification – a model that not only benefits policyholders more, increases engagement on the platform and provides a complementary income for YuLife. , Which offers deals on wellness services.
The idea has started – it is now used by more than 500 businesses, including Co-op, Del Monte, Jaguar Land Rover, Santander and CapitalOn, which provide their employees with plans, one in three of whom are involved in the app every day. On that heel, the company is now announcing that it has raised $ 120 million to expand the concept. Today, YuLife Group covers life insurance, critical illness protection and income protection, but it is now rapidly expanding into new segments such as dental and health, as well as financial services (pension is an example of a segment that has a strong relationship with life insurance)), As well as new markets like the United States
The fund, a Series C, brings a new strategic investor to the board, Japan’s Die-Ichi Life Insurance Company, which is leading the round, along with previous investors Crandom, LocalGlobe, Target Global, Latitude, Anthemis, Our Crowd, Idea, MCO, and MMC.
CEO and co-founder Sammy Rubin told us that this latest fundraiser is worth $ 800 million. In the context of some of those statistics, when Eulife raised money more recently than before – a Series B worth $ 70 million in 2021 was worth $ 346 million.
This is a decent jump considering the current climate. Many tech companies find it difficult to extend the round, and while they do, the valuation must go down (and in many cases down-round). And insuretech isn’t exactly exempt: at the height of the Covid-19 epidemic, insurance technology financing was 50% lower than a year ago, and Q2 is taking a slower turn, according to research from Dilroom.
Part of the reason for YuLife’s push is that the company itself has continued to grow through the recession.
Rubin tells me that its customers – who only sell it directly to a B2B model organization that provides life insurance to their employees as part of a broader benefit program – have grown 4X in the last year (not like the previous year, which was 10X, but still growing). Revenue has increased fivefold, and coverage is now a total of $ 50 billion, vs. $ 15 billion a year ago. He said about 50% of its customers are new to the platform, and by doing so it is expanding the scope of those who consider it a suitable benefit for their employees.
“These are companies that have never had life insurance before,” Rubin said, adding that they are “attracted not only by the whole life insurance facility, but also by the overall platform around it.”
That overall platform is an interesting twist to the initial concept of what life insurance can be.
The app has been created by gaming industry veterans and is designed around the concept of various natural environments such as forests and mountains, which YuLife collectively calls its “Universe”.
In each of these environments, users are encouraged to walk, cycle, meditate and do other activities to get around their environment in a healthier way, as well as be able to compare their progress with other peers. Like a lot of gaming nowadays, there is a degree of personalization in everyone’s experience: one person seems to create different subsequent situations after leaning towards one activity over another.
In addition, users are offered discounts on third-party products to further engage with the game in YuLife, which may include subscriptions to the Meditation app Calm, FitBit and Garmin devices, and more. When users make their way through their world, they receive rewards in some form called YuCoins. YuCoins can be used to redeem vouchers from a choice of Amazon and Asos instead.
Group Life Insurance, Rubin said, accounts for more than 80% of the company’s flagship products and revenue. Its other products – currently critical illness, income protection and dentistry – account for the other 20%. He added that its income is responsible for selling insurance policies. “Our insurance policies include overall and wellness components,” he said.
Wellness itself is a huge opportunity – worth প্রায় 1.5 trillion in 2021, according to McKinsey estimates – and when you see a strong link between a life insurance product and indeed a health insurance product, To see what creates the concept for. Rubin noted that one of the advantages of dental products at the moment is a free electric toothbrush for each new user (although users still have to pay for a head replacement).
In terms of how YuLife could grow, Rubin added that it has “no plans” to become a D2C product, but to continue selling through the company. This sets it apart from the broader wave of insuretech, which has greatly disrupted the current market by improving the accessibility of insurance power in the first place.
AIG, Met Life and Zurich Hall are ULife’s current underwriters in the UK, and Rubin said the company is currently in talks with underwriters and other partners for its US launch. Die-Chi Life has activities in the U.S. market – among other activities it owns Protective Life – but Rubin says the strategic component of this investment is not its goal, but a long-term plan to expand to Japan.
“Die-Ichi Life is committed to supporting companies that have a proven track record of improving people’s lives, and YuLife does just that, bringing real value to financial products to increase people’s well-being,” said Toshiaki Sumino, director and Dye. -Managing Officer of Ichi Life Holdings Inc. “YuLife has so much potential to build on its achievements so far, and we’re thrilled to be able to invest and help YuLife move to the next level and scale its global operations. YuLife shares our principles of harnessing the latest technology trends to make a real difference in the lives of those who use financial products. ”