The news: The US-based insurtech closed a $100 million Series D round at a valuation of about $900 million after revenues more than quadrupled over the past year, per TechCrunch.
How Ladder works: The insurtech offers flexible, fixed-term life insurance policies via carriers and is projected to issue $30 billion in coverage by year’s end.
What’s fueled its growth? Ladder has likely benefited from increased life insurance sales through digital channels in the US—and it has also prioritized targeting younger consumers.
What’s next for Ladder? The insurtech is pursuing licensing in more states to improve its margins and pass on the savings to its younger target market.
Full licensing to underwrite policies across the US will let Ladder take home the lion’s share of premiums rather than sharing the spoils with insurance carrier partners. This will not only increase Ladder’s margins but also lets it pass those savings on to policyholders in the form of cheaper policies, which are more attractive to younger demographics: More than 75% of younger consumers who purchased an individual life insurance policy in 2020 said they picked the insurer with the lowest price.
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