Health IQ Raises $55 Million in Series D Funding to Expand Its Health-Incentivized Life Insurance Model

VCBeat (WeChat Official Account: vcbeat) learned from foreign media reports that U.S. life insurance company Health IQ Insurance Services (Health IQ) announced today that it had secured $55 million in Series D financing. The round was led by Greenspring Associates, Aquiline Technology Growth, and Hanwha Asset Management, with participation from investors including Andreessen Horowitz.

Previously, Health IQ completed its seed round, Series B, and Series C financing in December 2014, December 2016, and November 2017, respectively, raising a total of $139.5 million. The Series B round alone raised $41.42 million.

Health IQ was founded with the mission of enhancing health awareness. The founders sought to incentivize customers to adopt healthy lifestyles by offering financial rewards. By providing lower insurance premiums to fitness enthusiasts, well-managed diabetic patients, and other individuals who maintain healthy lifestyles, Health IQ helps customers achieve improved physical health.

Since the sale of its first policy in 2016, Health IQ has leveraged relevant technologies and data to assess customers’ healthy lifestyles, offering corresponding discounts on life insurance premiums based on these assessments. Over the past three years, the proportion of cost savings for insured customers has risen from 4% to 41%. Life insurance companies partnering with Health IQ report an average premium saving of $4,289 per policyholder, with savings reaching up to $6,279 for 30-year cash-value life insurance products. Meanwhile, Health IQ has further expanded its business offerings by introducing new products such as specially rated life insurance and disability insurance for individuals with diabetes.

Health IQ has been growing rapidly in the insurance industry. Its CEO, Munjal Shah, stated, “Our competitive insurance premiums have attracted a large number of consumers. The company’s current revenue has reached $21 billion, increasing by $2 billion every few weeks. Since our last funding round, our revenue scale has doubled, growing from $7 billion to $21 billion.”

Max Chee of Aquiline Technology Growth stated, “We believe the future trend in the insurance industry is ‘precision insurance.’ Health IQ’s competitive advantage in leveraging technology and data to provide accurate pricing for customers has drawn our attention. Unlike traditional insurance companies, market research has revealed that the innovative insurance services offered by Health IQ deliver surprisingly fair prices to consumers. Aquiline is pleased to support Health IQ and leverage our insurance industry expertise to help the company further its innovative development and provide unique products for health-conscious individuals.”

Greenspring Associates is a venture capital firm founded in 2000. The company engages in long-term partnerships with enterprises through an integrated business platform, making investments across multiple stages, industries, and geographies. It manages approximately $8.8 billion in capital. With its investments in financial and insurance technology companies such as Bright Health, MoneyLion, Branch International, and YieldStreet, the firm has extensive experience in the insurance sector.

Aquiline Technology Growth, headquartered in New York, is a venture capital firm under Aquiline Capital Partners. It primarily invests in early-stage and growth-stage technology companies that bring innovation to the financial and insurance industries, leveraging extensive investment experience.

Hanwha Asset Management is a global asset management firm with $80 billion in assets under management. The company makes growth-stage investments worldwide and has invested in several prominent startups, including Zymergen, N26, Raisin, Yanolja, and Grab.

Andreessen Horowitz, based in Silicon Valley, California, is a venture capital firm focused on investing across all stages of company development. Its investment areas include social media, internet infrastructure, cloud computing, mobile internet, consumer internet, data storage, e-commerce, biotechnology, and the interdisciplinary fields of computer science and life sciences. a16z manages $10 billion in assets, including a $650 million Bio Fund, a $350 million Crypto Fund, and a Cultural Leadership Fund.

(Compiled by Tang Lulu)