Digital life insurance company Ladder raised 100 million dollars in a new round of funding, led by Thomvest Ventures and OMERS Growth Equity. Ladder raised money for the last time with a funding of 37.5 million dollars in February 2020.
The company provides insurance contracts – between 100,000 and 8 million dollars – to people between the ages of 20 and 60. Users can register via their phone and adjust coverage packages depending on whether they will have a family or intend to move on to a new stage in their lives.
Similarly, they can reduce life insurance if they repay a home loan or their children grow up. The company is also on track to issue 30 billion dollars worth of coverage by the end of 2021, having seen its revenue grow 4.5 times in 2020.
Ladder plans to use the new funds to expand its engineering team and develop the codebase and digital interaction with its customers, as well as focusing on expanding the business to target new partners.
According to Thomvest CEO Don Butler, the investment in Ladder brought an obvious return on profit, given the company’s growth, customer satisfaction and other factors. Ladder transforms security digitally, boosting consumer expectations, providing more features to the app.
Completing and buying a policy in 5 to 6 minutes instead of the 6 to 8 weeks that usually lasts when you have the xome and go with an insurer is characterized by a significant practicality, compared to the industry standard nowadays.
Given that Ladder’s customers tend to be younger, with an average age of 37, and the majority are people who buy life insurance for the first time, this model responds accordingly to the needs and means of the new generation.
Now almost 2/3 of its customers apply for life insurance through their mobile phone, while part of the growth that the company has experienced in recent times may be due to the general change of mentality during the pandemic.