With over $5 billion in life insurance coverage sold to date, the Canadian insurtech company will accelerate its release of new insurance product offerings, with its critical illness product slated for release in early Q4
– The funding will also be used to develop its B2B2C pillar; PolicyMe is set to announce several key partnerships with some of Canadaâ€™s leading fintechs and employee benefits providers, launching embedded solutions that will enable access for millions of Canadians
PolicyMe, the digital-first insurance provider on a mission to deliver simple and affordable insurance for Canadian families, today announces its raise of $18 million CAD in Series A financing. New investors, RGAX, Securian Financial (U.S. parent company of Canadian Premier Life Insurance Company) and SiriusPoint, join existing investors, HCS Capital and Westdale Properties, in the raise. A Tier 1 Canadian bank rounds out the $18 million equity and debt financing which was raised in a series of tranches over the last year.
The funding will accelerate PolicyMeâ€™s development of a comprehensive suite of products that will be distributed via direct-to-consumer and B2B2C channels across large membership and employee groups. PolicyMe will also be launching its embedded solution later this year with two of Canadaâ€™s leading fintechs, ahead of several other launches earmarked for Q1 and Q2 2023.
PolicyMe was founded in 2018 by Andrew Ostro, Laura McKay and Jeff McKay, who experienced firsthand the inefficiencies that existed across the traditional life insurance valuation chain through their years in the insurance and tech industries. At inception, the company first tackled distribution with the initial launch of its coverage calculator and price comparison platform, and then launched a fully underwritten digital product in March of last year with Canadian Premier Life Insurance Company. By eliminating inefficient underwriting and distribution costs, the digital-first product is priced 10 to 20 per cent lower than most traditional offerings. Furthermore, 84 per cent of PolicyMeâ€™s customers purchased policies without having to complete a medical exam, with most customers being able to apply and secure their policy in 20 minutes or less â€” a stark contrast to the traditional industry average of six weeks or more.
Since March 2021, PolicyMe has remained relentlessly focused on building a best-in-class digital experience for Canadian families, launching additional product and UX features that enable couples to purchase coverage together and receive free life insurance for their children.
â€œOur proprietary technology allows us to automate many aspects of the life insurance value chain while still staying close to the customer and personalizing their experience,â€ said Andrew Ostro, CEO of PolicyMe. â€œAs a result, we believe we have built the best term life insurance platform in Canada, and are excited to continue pushing the industry forward with our innovative products, strong partnerships, and new distribution channels.â€
PolicyMe has now sold over $5B in life insurance coverage and grew over 1,050 per cent from 2019 to 2021. With a track record of creating one of the fastest, most affordable term life insurance products in Canada, PolicyMe continues to push the envelope across both product and customer experience.
â€œWe arenâ€™t satisfied with just providing the best life insurance experience in Canada, our mission is to improve the lives of Canadians across the entire life and health product spectrum,â€ said Ostro. â€œWith the support of our partners and recent funding, our roadmap for the next 12 months includes the release of additional products that will drastically raise the bar for the insurance industry in Canada.â€
The company is set to release a new critical illness product which will cover over 40 different conditions, surpassing what other major Canadian insurers cover.
â€œPolicyMe continues to make huge strides in the industry, and has solidified its standing with one of the simplest and most affordable life insurance offerings in Canada,” said Luis Felipe San Martin, Managing Partner of HCS Capital. “Their ability to deliver a consumer-centric product with a seamless experience puts them in an ideal spot to expand their suite of offerings and distribution channels. Weâ€™re excited to be part of PolicyMe’s continued success.”
Since March 2020, the PolicyMe team has more than tripled its headcount to 47 and is fully remote with optional access to an office in downtown Toronto. As its product and partnerships roadmaps continue to scale rapidly, PolicyMe is actively recruiting engineering, product, advisor and growth talent.