Dayforward Raises New $25M to Make Life Insurance More Accessible Through Technology-Enabled Platform – AlleyWatch

Pre-pandemic, most life insurance searches were initiated online, but more than 90% of policies were secured through direct interactions with brokers. COVID has not only benefited the industry as consumers have become more mindful of their financial security, but it has also acted as a catalyst for digital transformation. Virtual functions for advisors and brokers, digital applications, electronic delivery of policies, and automated underwriting are all important priorities in great demand to keep up with today’s discerning consumers. day forward is a technology-enabled life insurance provider that enables Americans to access the financial security of life insurance through innovative product design and education. The company has automated the underwriting process, allowing customers to secure policies in a fraction of the time compared to the industry standard of three months for her. Founded in 2021, Dayforward just acquired industry veteran Commercial Travelers Life Insurance Company and plans to expand into disability, health and retirement, as well as nationwide expansion plans this year, to offer full-stack and full-service insurance. strengthens its capabilities as an insurance provider. While most insurtech startups are digitally optimized brokers for large insurers, Dayforward is uniquely positioned to build, create, sell and service policies.

alley watch Catch up with Dayforward’s CEO and Founder Aaron Shapiro To learn more about the business, the company’s strategic plans, and the latest funding round, the company’s total funding has now reached $45 million.

Who are your investors and how much did you raise?

Dayforward has raised $25 million in new funding. AXA Venture Partnerswith existing investors HSCM VenturesjuxtapositionWhen Munich Re Ventures.

What products or services does Dayforward offer?

Dayforward is a full-stack digital life insurance company that underwrites and issues its own policies. Our flagship solution is life insurance to protect your income. So, if the policyholder dies, the family will receive her twice a month payment, just like a salary, until the child becomes a financially independent adult. In this way, the standard of living of the family remains the same. Dayforward’s unique underwriting system allows people to apply in minutes. If approved, the policy can be purchased immediately at a great price.

What inspired you to launch Dayforward?

My own experience buying life insurance has taught me how difficult, tedious, and confusing the process can be. As cumbersome as it was, life insurance was very important to my family. I believe that everyone across America should have the opportunity to protect their families and have the right to do it in a better way. We don’t just make life insurance simple. It’s about making it better with policies that are personally tailored to each individual we encounter.

How is Day Forward different?

As a life insurance company, Dayforward is able to issue its own policies, allowing the company to innovate across underwriting, distribution and product development. Our end-to-end customer experience works with our proprietary technology and automated underwriting stack. Meanwhile, many other InsureTech startups are agents or brokers selling third-party products through vendor software. As a full-stack carrier, we are able to build a financial security juggernaut and truly modernize the way consumers think about and buy insurance products. , plans to expand into health, disability and retirement product lines.

What is Dayforward’s target market and size?

Our mission is to bring financial security to families across the country. We strive to continuously expand our market through product development and underwriting enhancements. Our latest funding round unlocked the ability to sell our products in most of the country and continued to expand throughout the rest of the year. We hope to become a fully inclusive company that provides safety.

what is your business model?

Our business model is the same as any other insurance company. We sell insurance policies and customers pay monthly premiums. Then, if someone dies, we pay the beneficiaries over time to ensure their families remain financially secure. There is a mathematical model that allows premiums collected to pay out claims while making a profit. We have a capital reserve, reinsurance from MunichRe and a team to ensure we follow all insurance regulations to make this all happen.

Our business model is the same as any other insurance company. We sell insurance policies and customers pay monthly premiums. Then, if someone dies, we pay the beneficiaries over time to ensure their families remain financially secure. There is a mathematical model that allows premiums collected to pay out claims while making a profit. We have a capital reserve, reinsurance from MunichRe and a team to ensure we follow all insurance regulations to make this all happen.

How are you preparing for a potential economic slowdown?

We are focused on providing families with great policies and strong customer service.

What was the fundraising process like?

Luckily, we were very supportive of our existing investors who agreed to continue funding the company. And our early success attracted interest from a new venture fund. We met with them and were drawn to his AXA Venture Partners, which has extensive experience in both insurance and technology companies, and the overall fundraising went well.

What was the biggest challenge you faced in raising capital?

The biggest challenge we had was that insurance is a specialized business. With more than $150 billion spent each year on life insurance premiums alone and decades without significant innovation, there are many opportunities. However, it is also highly regulated and requires a large amount of capital. Because when people buy insurance, they need to be confident that the insurer will provide service if the unthinkable happens. Therefore, it takes a certain kind of investor to understand the economics of insurance, the huge returns that come with insurance, but also the regulatory and capital constraints.

What factors in your business are driving investors to write you checks?

Dayforward is a once-in-a-generation opportunity to build a large insurance company. This is something that has not been done in his space for decades. With the acquisition of Commercial Travelers Life Insurance Company, we have an opportunity to do just that. We are the only digital life insurance company with a near-national footprint that can both create, service and sell policies like any other insurance company. That’s a big deal and very difficult to achieve. Investors believe we have the right foundation and the right team to make it happen. And we already have successful sales in a handful of states.

What milestones do you plan to achieve in the next six months?

We are pleased to expand our operations nationally, continue to launch unique solutions through our strategic partners, and focus on developing new insurance products. We plan to expand our living offerings and expand into health, disability and retirement product lines. to families across the country. We believe a smarter approach to financial security can make a big difference for families across America.

What advice can you give to New York companies that haven’t injected fresh capital into their banks?

It’s tempting to talk about new funding rounds, but it’s not the funding that counts. The key is to grow and build a profitable company. So my advice to businesses is to focus on the basics. Build your business on the basis that your customers love your product or service and pay for it profitably. Once you do that, everything else will follow. My last company, Huge, was completely self-funded without needing a penny and has grown to 1,500 employees worldwide.

It’s tempting to talk about new funding rounds, but it’s not the funding that counts. The key is to grow and build a profitable company. So my advice to businesses is to focus on the basics. Build your business on the basis that your customers love your product or service and pay for it profitably. Once you do that, everything else will follow. My last company, Huge, was completely self-funded without needing a penny and has grown to 1,500 employees worldwide.

Where do you see the company going now in the near future?

Dayforward grows into a comprehensive financial security solution for the modern home. Young people can start with term insurance, like the one offered today, and as they mature they can buy products for life changes such as college savings, disability, pensions and retirement.

Where is your favorite coffee shop or location in the city to hold a meeting?

I love Pattis Bakery on the Upper East Side. That said, many of my team live downtown, so we often have breakfast or lunch at Lafayette.

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