Ethos, a startup that claims to process life insurance applications in minutes, has raised $35 million in venture funding.
CNBC, citing the company, reported the round of financing was led by Accel and included participation by Google's venture capital arm. CNBC reported that with the latest capital raise, the total funding for Ethos stands at $46 million and the startup is now valued at greater than $100 million.
With the funding, Accel partner Nate Niparko gets a seat on the board while Google Ventures General Partners Tyson Clark will act as an advisor to the board. Sequoia Capital and Arrive, the venture fund of Roc Nation, the entertainment company owned by rapper Jay Z, also participated in the round of fundraising.
"The insurance sector is a $1 trillion industry that is still largely dependent on pen and paper, pushy salespeople, doctor office visits, and legacy systems, which is why we believe there is a tremendous opportunity to simplify the process through technology — and that's exactly what Ethos has built," Accel's Niparko told CNBC in an email. He pointed to other investments the VC has made in insurance tech startups including The Zebra, a car marketplace, noted the report. "We believe that Ethos is the first player in the life insurance space that's truly poised to make a difference in how Americans purchase and interact with their insurance provider."
Ethos uses data analytics to forecast the life expectancy of a person and boasts cutting the time to apply for life insurance from 10 weeks to 10 minutes. What's more, CNBC reported it pays out insurance claims within a week. The startup also said 99 percent of its customers don't need to undergo a medical exam or blood test in order to get a life insurance policy. Ethos provides term life insurance that runs between 10 and 30 years, with the company going after those in the prime of their life and wouldn't necessarily think about the need for life insurance. It is partnered with Assuirty Life Insurance Company and Munich Re, noted the report.