Yulife Secures $70M Funding at $346M Valuation
Reimagining Life Insurance: YuLife Secures $70 Million in Series B Funding
While often perceived as a somber necessity, the life insurance sector is undergoing a transformation. A London-based startup, YuLife, is challenging conventional perceptions by integrating gamification and a focus on wellness into the core of its offerings. This innovative approach has garnered significant attention, culminating in a substantial funding announcement.
A New Approach to Financial Protection
YuLife has successfully secured $70 million in a Series B funding round, marking one of the largest investments of its kind for an insurtech company in Europe. This capital injection will fuel the company’s expansion and further development of its unique life insurance model.
Investment Details and Company Valuation
Target Global spearheaded the funding round, with participation from Eurazeo, Latitude, and existing investors including Creandum, Notion Capital, Anthemis, MMC Ventures, and OurCrowd. YuLife’s CEO and founder, Sammy Rubin, confirmed the funding has resulted in a company valuation of $346 million (£250 million).
Strategic Use of Funds
The newly acquired funds will be strategically allocated to several key areas. These include continued business expansion, the development of additional products within the YuLife platform, and ongoing investment in the underlying technology that powers its services and policy management.
Incentivizing Health and Longevity
“Our insurance philosophy centers around empowering individuals to live healthier, longer lives,” Rubin explained. “By incentivizing positive health behaviors and potentially reducing claims, we create a mutually beneficial scenario.” He further highlighted the company’s ambition to modernize actuarial science, stating, “We are developing a new risk assessment model, moving beyond the outdated reliance on age and smoking status, which haven’t seen substantial updates in centuries.”
Current Market and Growth
Currently, YuLife operates exclusively in the U.K., offering its services directly to organizations for distribution to their employees. This business segment, encompassing income protection and critical illness cover, currently manages $15 billion in coverage and has experienced tenfold growth in the past year. This growth coincides with a period of heightened awareness surrounding life insurance, potentially influenced by recent global events.
Notable clients include Capital One, Co-op, Curve, Havas Media, Severn Trent and Sodexo.
Despite this impressive growth, YuLife’s $15 billion in coverage represents a small fraction of the overall life insurance market, which is estimated to be worth $2.2 trillion globally.
The Genesis of YuLife
The company’s origins stem from Rubin’s experiences at his previous venture, PruProtect (now Vitality Life), where he observed a common issue.
“Insurance benefits often remain unused, simply sitting idle,” he noted. YuLife was founded with the goal of overcoming this challenge by prioritizing user engagement.
Gamified Wellness Experience
The YuLife app, developed by a team with expertise in the gaming industry, features immersive environments – including forests, oceans, deserts, and mountains – collectively known as the “Yuniverse.” This framework also inspired the design of the company’s London headquarters.
Within these virtual worlds, users are encouraged to engage in healthy activities like walking, cycling, and meditation. They can track their progress and compare it with colleagues, fostering a sense of friendly competition. The app also offers a degree of personalization, tailoring experiences based on individual activity preferences.
Rewards and Partnerships
Users earn “YuCoins” for their healthy habits, which can be redeemed for discounts and vouchers from partners such as Amazon and Asos, as well as subscriptions to services like Calm, FitBit, and Garmin.
Beyond Financial Security
YuLife’s approach extends beyond simply providing financial peace of mind. It aims to promote a holistic lifestyle focused on well-being.
“Ultimately, our vision encompasses not just health, but a broader lifestyle approach,” Rubin stated.
A Unique Business Model
YuLife’s products operate on an affiliate model, creating a business incentive to promote partner offerings and track redemptions. However, participation in these affiliate programs is not mandatory for policyholders.
Disrupting the Insurance Landscape
YuLife’s innovative approach distinguishes it from other insurtech companies that primarily focus on streamlining the purchasing process. It is fundamentally rethinking the core purpose of life insurance. Other companies exploring similar concepts include DeadHappy, BIMA, Ethos (backed by Jay-Z), and Sproutt.
Industry Recognition
“YuLife is redefining life insurance, leveraging cutting-edge technologies to transform a traditionally conservative industry,” said Ben Kaminski, partner at Target Global. “In the wake of COVID-19, with health and well-being taking center stage, YuLife is pioneering a new era of insurance by incentivizing healthier lifestyles. The company is well-positioned to capitalize on its pandemic-driven growth and become a global leader in the life insurance sector. We are thrilled to partner with YuLife on this journey.”