miami startup asteya launches to provide ‘income insurance’
Asteya Launches with $10 Million Seed Funding
Asteya, a new disability insurance startup based in Miami, has officially launched. The company focuses on providing financial protection for small business owners and those participating in the gig economy, securing $10 million in seed funding.
Former Bumble Executive at the Helm
Co-founder and CEO Alex Williamson, previously Bumble’s chief brand officer, characterizes Asteya as an “income insurance” provider. This launch follows closely after Bumble’s recent IPO, demonstrating a trend of former executives leveraging their resources to establish new ventures.
Williamson’s personal experience with medical leave at Bumble underscored the need for accessible disability insurance. She stated that without Bumble’s generous leave policy, she would have required such coverage herself.
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Addressing a Gap in Coverage
Currently, approximately 51% of U.S. employers extend disability insurance benefits to their employees. This leaves nearly half of the workforce vulnerable to financial hardship if they become unable to work.
Asteya specifically targets the growing segment of small business owners, freelancers, and gig workers who often lack access to traditional employer-sponsored benefits.
The company’s initial product offers up to $500,000 in coverage with monthly premiums starting at $6.
The Importance of Financial Security During Illness
Facing illness or injury is challenging enough without the added stress of financial worries. Concerns about covering essential expenses like rent can hinder recovery.
“Maintaining financial stability is crucial for focusing on getting well,” Williamson explained to TechCrunch.
Disability Insurance vs. Federal Disability
Individuals without disability insurance may attempt to apply for federal disability benefits. However, a key difference exists in the timing of payments.
Disability insurance provides immediate financial support, while federal disability benefits require a lengthy approval process that can take several months. Many initial applications are denied, often necessitating legal assistance for successful approval. Even then, payments typically range from a few hundred to a couple thousand dollars monthly and begin six months after approval.
Streamlined Application Process
Asteya boasts a quick and easy application and approval process, completed in minutes. The company aims to inject a more human-centered approach into the often-complex insurance industry.
Gender-Neutral Pricing
Historically, women have often been subjected to higher premiums for disability insurance compared to men, potentially making them a more costly hire for businesses. Following the lead of states like New York and Massachusetts, which outlawed this practice in 2019, Asteya’s initial offering features gender-neutral pricing.
Backed by Industry Leaders
Asteya operates with both a managing general agent (MGA) and broker’s license. Through its MGA license, policies are underwritten by established insurance companies, Munich Re and Lloyd’s of London. This arrangement ensures coverage stability even if the startup were to face challenges.
Investor Support
Williamson’s network and the team’s connections facilitated pre-launch funding. Whitney Wolfe Herd, founder and CEO of Bumble, is among the angel investors.
Additional investors include I2BF Ventures, Capital Factory, Cap Meridian Ventures, Northstar.vc, Atrum, and Geeta Sankappanavar.
Future Expansion
The company plans to expand its product line to include coverage for longer-term disabilities and individuals with pre-existing conditions.