Ethos (company)

Ethos is a San Francisco, CA-based technology company that sells life insurance online.[3] Founded in 2016, the company uses technology, data science and predictive analysis to simplify the buying process.[3]

Ethos
TypePrivate company
IndustryInsurtech
Founded2016
FoundersPeter Colis,
Lingke Wang
Headquarters
San Francisco, CA
,
United States
Area served
United States
Key people
Peter Colis (CEO),
Linkge Wang (President and CTO)[1]
ProductsLife insurance
Number of employees
200 (July 2021)[2]
Websiteethoslife.com

History

Ethos was founded in 2016 by Peter Colis and Lingke Wang, two entrepreneurs who were roommates while earning MBAs at Stanford Graduate School of Business.[4] The two previously founded Ovid Life, a company that operated a secondary marketplace where owners of life insurance policies could cash out their policies by selling them to others.[5] The goal of Ethos was to simplify the process of buying life insurance.[3] Colis became CEO, and Wang became President and CTO.[1]

In June 2018, Ethos raised $11.5 million in a Series A funding round, led by investment firm Sequoia Capital, with additional participation from musician Jay-Z's entertainment company Roc Nation's venture capital arm Arrive, Robert Downey Jr.’s Downey Ventures, basketball star Kevin Durant’s Durant Co. and actor Will Smith’s Smith Family Circle.[6] In October, the company announced a $35 million Series B funding round, led by investment firm Accel Partners, along with GV formerly (Google Ventures), return investors Sequoia Capital and Arrive, and Stanford University.[5][3]

In August 2019, the company raised $60 million in a Series C round, led by GV, Sequoia, Goldman Sachs and Accel.[4]

In May 2021, a $200 million Series D investment valued the company at $2 billion.[7] At the time of the funding, the company announced it was expecting to sell $20 billion in life insurance coverage in 2021, but that it was not yet profitable.[7] In July, Softbank invested $100 million from its Vision Fund 2, valuing Ethos at $2.7 billion.[2] In October 2021, Money named Ethos as best for underwriting, noting the simpler application process.[8]

Products

Ethos uses artificial intelligence, machine learning technology, data science and predictive analysis to simplify the buying of whole or term life insurance.[3][9]

The company offers faster approval for life insurance by accessing data such as motor vehicle and prescription drug records, rather than requiring a medical exam, blood test, agent meetings and longer processing times.[3] Customers complete an online application and answer questions to retrieve quotes.[9]

The company offers three types of underwriting: simplified issue and fully underwritten, used for term life policies, and guaranteed issue, used for whole life policies.[8]

Ethos is not a provider of life insurance itself, but instead operates as an "insuretech", integrating third-party insurance carriers, providing access to underwriting, customer service, and improved onboarding and customization.[7] The company contracts with insurers like Legal and General America, AAA Life, Trustage and Americas Life Insurance Group to offer policies to customers.[2]

As of July 2021, it was licensed to operate in 49 states, excluding New York.[2]

Operations

Ethos is headquartered in San Francisco, CA.[3] In July 2021, the company reported 200 employees.[2]

References
  1. "Real estate move, hiring ahead in Austin after Ethos snags fresh $100M". Austin Business Journal. July 21, 2021. Retrieved October 13, 2021.
  2. "Insurtech Ethos Valued at $2.7 Billion After SoftBank Investment". Barron's. July 21, 2021. Retrieved October 13, 2021.
  3. "S.F. startup backed by Kevin Durant raises $35 million, seeks larger HQ". San Francisco Business Times. October 30, 2018. Retrieved October 14, 2021.
  4. "Ethos wants to make signing up for life insurance a pain-free process. Here's the pitch deck that convinced Alphabet's GV investing arm that it's worth $500 million". Business Insider. September 24, 2019. Retrieved October 13, 2021.
  5. "The Jay-Z-backed life insurance startup, Ethos, has raised $35 million". TechCrunch. October 30, 2018. Retrieved October 14, 2021.
  6. "Robert Downey Jr., Jay Z, Durant Back Life Insurance Startup". Bloomberg. June 14, 2018. Retrieved October 14, 2021.
  7. "Ethos picks up $100M at a $2.7B+ valuation for a big data platform to improve life insurance accessibility". TechCrunch. July 21, 2021. Retrieved October 14, 2021.
  8. "12 Best Life Insurance Companies of October 2021". Money. October 7, 2021. Retrieved October 14, 2021.
  9. "Helping Provide Peace of Mind: Ethos Reimagines Life Insurance". Yahoo. August 12, 2021. Retrieved October 13, 2021.
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