PayPal Ventures Helps InsurTech Olé Life Raise $13 Million

Latin American InsurTech Olé Life has raised $13 million with the help of PayPal Ventures.

The Series B funding, announced Thursday (Jan. 16), will allow Olé to boost its growth across Latin America by establishing local operations in key markets and introducing new products beyond life insurance.

“As the first fully digital life insurance product in Latin America, this funding is a testament to the incredible progress we’ve made in building a platform that resonates with our customers,” Michael Carricarte, Olé Life’s founder and CEO, said in a news release.

“With the support of PayPal Ventures, we are poised to expand our reach beyond USD-denominated term life policies and introduce groundbreaking offerings, such as whole-family protection plans that address the region’s unique needs. This investment is a pivotal step toward transforming how financial protection is delivered, empowering millions of families to secure their futures.”

Olé Life, the release said, has more than $2 billion in total insured value and 4,000-plus distribution partners, positioning it to address the rising demand for insurance in the region.

PYMNTS wrote recently about the challenges facing the insurance sector in implementing real-time payouts. Despite the potential benefits for insurers and customers, such as reduced delays and improved satisfaction, the industry has been slower to embrace real-time payouts because of high costs and transparency issues.

At least, that’s the case for smaller insurers. Larger companies have been more ready to adopt real-time payments. Research by PYMNTS Intelligence finds that 69% of large insurers see real-time payment capabilities as very or extremely important to their business, compared to just 33% of smaller insurance companies that hold that view.

“Larger insurers have the resources to overcome the initial barriers of cost and integration, allowing them to implement real-time payment solutions more effectively,” PYMNTS wrote.

Most of the real-time payment adoption in the insurance sector comes from business-to-business (B2B) transactions, with small insurers employing these systems for operations with partners instead of direct claimant payouts.

“For larger insurers, however, real-time payments offer a competitive edge by improving cash flow management and strengthening relationships with partners,” the report said. “The ability to offer faster payouts is viewed as crucial to maintaining a competitive advantage.”