Sure integrated insurtech lifts mega-tower as fintechs are forced to diversify
The news: Insurtech based in the United States Sure got a $ 100 Million Series C Financing Round, giving it a Valuation of $ 550 million, by TechCrunch.
Learn more about Of course:
- Insurtech was launched as a software-as-a-service platform in 2016 to provide financial institutions and fintechs with a digital insurance infrastructure.
- Its service modernizes and digitizes the entire insurance value chain so that clients can provide customers with a digital experience without paperwork or human interactions.
- Using Sure’s API enables customers to bring new insurance products to market faster and at lower cost. Its clients include Chubb, Revolution, Improvement, and Farmers Assurance.
- Without disclosing specific revenue figures, Sure said it has been profitable since 2019 and has tripled its annual recurring revenue each year.
And after: With the new funding, Sure plans to expand into Europe, Latin America and Asia, where it wants to open new offices. It will also improve its solution to further streamline the insurance integration process and plans to triple the number of engineers Therefore.
Why this might be successful: Insurance products offer fintechs a great source of additional revenue over their roadmaps to profitability, and incumbent insurers are feeling the heat of innovative insurtechs, two factors that will help grow Sure’s customer base.
- The US market value of integrated insurance is expected to rise from $ 5 billion in 2020 at $ 70.7 billion in 2025, through Capital of Lightning.
- Adding insurance services to their product suites helps fintechs to diversify their sources of income and collect predictable monthly fees.
- And as fintech giants like neobank Revolut and robo-advisor Betterment, which Sure already has among its clients, move into product lines like insurance, other fintechs will follow suit to stay competitive. and provide users with a one-stop-shop to manage their finances.
- Meanwhile, legacy insurers are threatened by insurtechs like Lemonade, who ended 2020 with more … than 1 million customers, worsening the need of incumbent operators for more innovative insurance products, in particular with regard to customer satisfaction stagnates. Sure can help them quickly launch solutions like digital claims management to stay competitive.