Insurtech News: Bestow partners with Lemonade; Oscar readies IPO

Here’s a quick rundown on a couple of notable developments from some high-profile insurtech disruptors.

Lemonade chooses Bestow as its life platform

Bestow is bringing its digital life insurance infrastructure to a leading P&C insurer.

Dallas-based Bestow, which bills itself as “the first full-stack life insurance company,” just announced a new partnership with Lemonade, the insurtech unicorn known for its homeowners, renters and pet insurance, which recently launched life insurance.

Powered by Bestow’s Protect API, Lemonade customers can apply for life insurance in as little as five minutes online — all within Lemonade’s website and apps, according to a Feb. 10 press release announcing the deal.

Customers are greeted by Lemonade’s AI chatbot Maya, who guides them through a conversational application. Through the Protect API, customers are underwritten in real-time and find out instantly if they’re approved. Bestow uses third-party data to determine eligibility and pricing in seconds, eliminating the need for a medical exam.

“Bestow has built life insurance infrastructure for the internet, partnering with world-class companies who provide access to vital financial products,” said Jonathan Abelmann, Co-founder and President of Bestow. “Lemonade is a visionary in using technology to transform insurance, and we couldn’t be more excited to partner with them on Lemonade Life, which is truly a one-of-a-kind experience.”

In 2020, Bestow entered into a definitive agreement to purchase Iowa-based nationally licensed life insurer Centurion Life, grew its customer base by 400%, and raised more than $100 million in funding. The carrier is accelerating growth across new product lines to further support advisor sales, carrier partnerships, and industry-first distribution partnerships like Lemonade Life.

Bestow partners benefit from various integration options that create on-brand and highly scalable life insurance offerings. Life insurance products on Bestow’s platform are competitively priced and 100% digital.

Lemonade, meanwhile, recently announced its intention to offer 3,300,000 shares of its common stock for sale in an underwritten public offering, resulting in net proceeds of up to $544.5 million.

Oscar readies for IPO

Speaking of IPOs, another notable insurtech, Oscar Health, Inc., recently announced that it has filed a registration statement with the SEC relating to the proposed initial public offering of its Class A common stock.

Oscar intends to list its Class A common stock on the New York Stock Exchange under the ticker symbol “OSCR.” The number of shares of Class A common stock to be offered and the price range for the proposed offering have not yet been determined. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

Founded in 2012 by Josh Kushner and Mario Schlosser, Oscar got its start as an individual-only insurance plan. The company now offers individual, small group and Medicare Advantage plans to roughly 529,000 Americans, according Oscar’s Jan. 31 tally, as reported by MobiHealthNews.

It’s active across 18 U.S. states, with the majority of its business being in Florida, Texas and California. It has raised approximately $1.6 billion in funding from big names such as Alphabet, Khosla Ventures and General Catalyst.

Oscar’s S-1 filing with the SEC revealed it logged $1.67 billion in revenue during 2020 and $1.04 billion 2019, but did so at a loss of about $407 million and $261 million, respectively, in those same years, contributing to the company’s accumulated deficit of about $1.43 billion as of the end of 2020.

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