Health IQ is a rapidly growing Mountain View, California-based life insurance company that has announced it has raised $55 million in Series D funding led by Greenspring Associates, Aquiline Technology Growth, and Hanwha Asset Management. And the additional financing also came from existing investors such as Andreessen Horowitz and several others.
What does Health IQ do? The company is on a mission to improve the world‚Äôs health by rewarding runners, cyclists, weightlifters, well-managed diabetics, etc. for living a healthy lifestyle by offering lower rates. Health IQ does this through the use of science and data to measure the impact of healthy lifecycles.
‚ÄúConsumers are responding well to our lower rates. Our company has reached $21 billion in client coverage and is adding an additional $2 billion every few weeks. Since our last funding announcement in 2017 our coverage amount has tripled. Health IQ has grown from seven billion to 21 billion in coverage,‚ÄĚ said Health IQ CEO Munjal Shah in a statement.
The company‚Äôs three founders including Shah, COO Vishal Parikh, and COO Gaurav Suri have all been touched by a personal health challenge and overcame them by adopting healthier lifestyles. So they wanted to inspire and encourage others to embrace a healthy lifestyle through financial rewards.
Ever since Health IQ started selling policies in 2016, the company was able to use its science and proprietary data to increase the discounts that consumers get when buying life insurance.
‚ÄúAt Greenspring, we‚Äôre always looking for market leaders and companies that demonstrate momentum. That‚Äôs why we‚Äôre investing in Health IQ, one of the nation‚Äôs fastest-growing new life insurance companies. We‚Äôre excited to be part of Health IQ‚Äôs growth going forward,‚ÄĚ added Jim Lim of Greenspring Associates.
In the past three years, the company‚Äôs savings for clients increased from 4% up to 41%. And now the average life insurance client that works with Health IQ will save $4,289 with rate savings and up to $6,279 through underwriting savings over the course of a 30-year policy.
And the company further innovated by offering new products such as special rate life insurance for well-managed diabetics, special rate disability insurance, and other products.
‚ÄúWhat drew us to Health IQ was its data advantage. This is an insurance company that is using science and data to more accurately price insurance for its clients. We believe the next generation of insurance will be this form of accurate pricing. We call this new trend ‚ÄėPrecision Insurance,‚Äô‚ÄĚ explained Max Chee of Aquiline Technology Growth (ATG). ‚ÄúAs focused insurance technology investors, we see Health IQ as highly differentiated from other Insurtech companies. In canvassing the market, we found Health IQ‚Äôs innovation in bringing fair prices to consumers highly compelling. Aquiline is excited to support Health IQ and utilize our insurance industry expertise to help the company further innovate and expand as they continue their mission to offer unique products to health-conscious individuals.‚ÄĚ
Including this round of funding, Health IQ has raised a total of $139.5 million. Some of the company‚Äôs other investors are Charles River Ventures, First Round Capital, Greylock Partners, Menlo Ventures, Ribbit Capital, Felicis Ventures, and Foundation Capital.