At PolicyMe, we’re on a mission to deliver simple, transparent and affordable insurance for Canadian families, which is why we’re thrilled to announce our raise of $18 million (CAD) in Series A financing.
A Tier 1 Canadian bank rounds out the $18 million equity and debt financing which was raised in a series of tranches over the last year.
Our successful Series A funding of $18 million recognizes PolicyMe’s unique approach to insurance and keen understanding of the insurance market, and will allow us to continue elevating the insurance industry by protecting Canadians and their loved ones.
“We aren’t satisfied with just providing the best life insurance experience in Canada, our mission is to improve the lives of Canadians across the entire life and health product spectrum. With the support of our partners and recent funding, our roadmap for the next 12 months includes the release of additional products that will drastically raise the bar for the insurance industry in Canada.” – Andrew Ostro, CEO of PolicyMe
With this raise, PolicyMe will be able to expand our product offerings and continue to improve the insurance experience, so that Canadians and their loved ones will be more protected than ever.
This new, comprehensive suite of products will be distributed via direct-to-consumer and B2B2C channels across large membership and employee groups, reaching even more Canadians and their loved ones.
We will also be launching our embedded solution later this year with two of Canada’s leading fintechs, ahead of several other launches earmarked for Q1 and Q2 2023.
This funding will allow us to continue challenging the insurance industry by reaching more Canadians with varying insurance needs. In this effort, PolicyMe is set to release a new critical illness product which will cover over 40 different conditions, surpassing what other major Canadian insurers cover.
“PolicyMe continues to make huge strides in the industry, and has solidified its standing with one of the simplest and most affordable life insurance offerings in Canada. Their ability to deliver a consumer-centric product with a seamless experience puts them in an ideal spot to expand their suite of offerings and distribution channels. We’re excited to be part of PolicyMe's continued success." - Luis Felipe San Martin, Managing Partner of HCS Capital
In 2018, PolicyMe founders Andrew Ostro, Laura McKay, and Jeff McKay identified a flaw in the insurance industry: buying insurance was confusing, expensive, and time consuming—but it didn’t have to be. With their combined experience in the insurance and tech industries, they sought to fix this.
At inception, PolicyMe began as an insurance broker, launching a coverage calculator and price comparison platform. Then, in March 2021, PolicyMe launched a fully underwritten digital life insurance product in partnership with Canadian Premier Life Insurance Company. But that was just the beginning.
By eliminating inefficient underwriting and distribution costs, PolicyMe’s product is priced 10 to 20 per cent lower than most traditional offerings, passing the savings on to Canadian families.
And that’s not all: 84 per cent of PolicyMe’s customers purchased policies without having to complete a medical exam, with most customers being able to apply and secure their policy in 20 minutes or less—a stark contrast to the traditional industry average of six weeks or more.
It wasn’t only the product that needed an update, however—the experience of buying insurance also needed an overhaul.
Since March 2021, PolicyMe has been relentlessly focused on building a best-in-class digital experience for Canadian families.
Leverging tech to improve the process of purchasing insurance, PolicyMe launched additional product and UX features that allows couples to purchase coverage together at a discount and receive free life insurance for their children, giving Canadian families even more protection, free of charge.
“Our proprietary technology allows us to automate many aspects of the life insurance value chain while still staying close to the customer and personalizing their experience. As a result, we believe we have built the best term life insurance platform in Canada, and are excited to continue pushing the industry forward with our innovative products, strong partnerships, and new distribution channels.” - Andrew Ostro, CEO of PolicyMe
As of September 2022, PolicyMe has sold over $5B in life insurance coverage and grew over 1,050 per cent from 2019 to 2021. Since March 2020, the PolicyMe team has more than tripled its headcount to 47 and is fully remote with the option to work out of its office in downtown Toronto.
With a track record of creating one of the fastest, most affordable term life insurance products in Canada, we are continuing to push the envelope across both product and customer experience.
With this round of funding, PolicyMe remains dedicated to innovating the insurance industry and providing an exception experience for our customers. We hope you’ll join us as we take yet another leap forward in our mission of protecting Canadians and their loved ones.