Insurtech Company Ethos Raises $100M In Latest Funding Round

Insurance firm Ethos has raised an additional $100 million on the heels of a $200 million Series D round two months ago, the company announced Wednesday (July 21). The new investment from SoftBank Vision Fund 2 brings the firm’s total funds raised to $400 million and pushes its valuation to $2.7 billion. Existing investors include Sequoia Capital, Accel, GV (formerly Google Ventures), General Catalyst and Jay-Z’s Roc Nation.

Based in San Francisco, the life insurance provider has offerings in 49 states and continues to grow at a rapid pace in its mission to provide greater access to life insurance for women and low- and middle-income families. Ethos anticipates issuing $20 billion of life insurance coverage this year. The company opened new offices in Austin, Texas and Singapore, and said it will double its staff by the end of this year.

“Everyone should have an opportunity to protect their families,” Ethos Co-Founder and CEO Peter Colis said in the funding announcement. “Our goal isn’t just to offer the best insurance customer experience ever created, but to offer it to everyone. Even at this early stage we’ve demonstrated that our technology can do this with life insurance. We’re excited to apply our technology and data platform in new ways to expand that safety net even further.”

As reported last month, banks and other financial institutions are successfully offering insurance as part of their normal workflows. Advanced technologies could align homeowner’s insurance with mortgage setup, for example. Insurtech providers are more readily offering life insurance through digital platforms, which allows the financial advisor and consumer the ability to review and discuss a broad suite of life insurance options.

Ethos cited a recent study by industry research firm LIMRA and nonprofit Life Happens that underlines the need for more education coupled with accessible insurance programs. According to the study, more than half (53 percent) said they are not sure what product they need or how much coverage is optimal.