Protecting Lives. Rewarding Living — Leading YuLife’s $70m Series B Funding Round
Big news! We are very happy to announce that Target Global has led the $70m Series B in YuLife supported by new investors Eurazeo and Latitude as well as existing investors Creandum, Notion Capital, Anthemis, MMC Ventures, and OurCrowd. Congratulations to Sammy, Sam, and the whole YuLife team! This round is not only one of Europe’s largest InsurTech funding rounds in life insurance but also a clear sign of the increasing maturity of the European InsurTech ecosystem. The funding round will allow the company to develop new products, expand its UK market penetration, and broaden its reach into new global markets.
This article will look at why life insurance is ripe for transformation, why we are leading this $70m round, and explain Yulife’s compelling vision to transform life insurance for good.
Our world is changing — so should life insurance
The $2.2 trillion global life insurance industry is ripe for transformation. For too long, life insurance has focused solely on paying out a lump sum upon death, leading to low industry trust and little perceived value for users. This has led to some sobering statistics: In the UK, for example, 66% of professionals are not sufficiently insured, and high complexity means 8 out of 10 people claim they do not understand UK insurance policies.
But it doesn’t have to be this way. Other trends should, in theory, support a rise in insurance uptake. For example, consumers are increasingly invested in their personal and professional well-being: 56% of adults feel their wellbeing was affected because of Covid-19, while 38% of adults report high levels of anxiety. In addition, there is a growing desire for financial security, with 55% reporting a decline in financial wellbeing in the past six months. The pandemic also had a direct detrimental effect on our health, for example, a 38% reduction in average daily steps. Even small lifestyle changes can have significant ripple effects on human health, with 80% of chronic diseases potentially eliminable through lifestyle changes and basic everyday actions such as taking more steps.
We believe that all of these elements — the old-school industry approach, the rising importance of mental health, and the strong impact of healthy lifestyles on chronic diseases — have created a perfect storm for YuLife and their mission to change insurance for good.
Welcome to YuLife — Welcome to the future of life insurance.
YuLife transforms traditional group life insurance into a suite of wellbeing and insurance products, a paradigm shift towards an insurance model that simultaneously supports members, insurers, and employers. Members improve their wellbeing while insurers gain from an approach that de-risks individuals through healthy activities, while employers are empowered with a product that lets them truly demonstrate care for their employees. YuLife’s life insurance includes everything you’d find in a traditional group life insurance policy, while also adding critical illness cover, income protection, virtual GP services, and employment assistance such as counseling and coaching. Active YuLife members are directly rewarded for making proactive lifestyle changes, with the knock-on effect of preventing physical and mental illness. At the same time, members receive financial security thanks to essential insurance services.
YuLife’s product combines merges insurance with gamification, community building elements
Uniquely, YuLife also lets employers reward healthy living by offering employees discounts and vouchers from leading brands including Amazon, ASOS, and Avios. These benefits can be purchased with YuCoin, YuLife’s virtual currency, earned by completing everyday wellness activities such as walking, cycling, meditation, and mindfulness. By incentivising healthy living, YuLife provides employers with a way to simultaneously boost retention rates, improve employees’ standard of living, and safeguard their loved one's financial future.
So what can we learn from YuLife?
Ever since our first meeting, it was clear that YuLife’s “product-first” approach would shake up the traditional insurance industry. Yulife’s app has a highly gamified feel, making it almost the Candy Crush of life insurance. This strong gamification is unique in the insurance industry, but also in the broader digital health space, and has led to engagement and retention levels significantly above the market average. Although many companies are moving towards a product-first approach in their business strategy, most fail to show clear impact for all stakeholders involved. What sets YuLife apart is the clear-headedness to create value for all stakeholders in the ecosystem while particularly rewarding end customers, combined with the discipline to make it all a reality. The results speak for themselves: 85% of YuLife’s end customers feel more positive at work, 87% feel more energised and happy, while 67% live healthier lifestyles. This all goes to show that YuLife’s app drives lasting healthy habits as well as providing actionable HR insights for businesses. As a result of the YuLife app’s unparalleled user engagement, almost 1 million wellness quests have been completed through the app to date.
As further testament to the strong product-market fit, YuLife has grown >10x during the COVID-19 pandemic working with globally leading businesses, such as Sodexo, what3words, and Curve. We believe that YuLife is redefining life insurance, by using the most innovative technologies to transform a largely traditional industry. With health and wellbeing increasingly thrust into the limelight in the wake of Covid-19, YuLife is fundamentally changing insurance by incentivizing people to lead healthier lifestyles and helping its clients respond to the challenges posed by an ever-changing working environment. We are very proud to partner with YuLife on its journey of becoming a global leader in life insurance.
Target Global is an international investment firm headquartered in Berlin, with €1.5bn+ in capital commitments and co-investments. With offices in London, Tel Aviv, and Barcelona, we connect the key European startup ecosystems and leverage the unique DNA of each of our target geographies, across our global network. Building on our experienced team with substantial operational and investment experience, we help exceptional entrepreneurs to build market leaders. Target Global invests across multiple stages, investing in fast-growing tech companies, targeting trillion € markets. Our partners have been investing for more than 15 years in the digital technology space, backing some of the key European success stories. The Target Global portfolio includes companies such as Auto1, Delivery Hero, Docplanner, Rapyd, TravelPerk, wefox, and Zego.