LifeRaft, which offers a digital platform for health insurance, has reportedly collected $3.5m in a seed funding round.
The investment was co-led by Costanoa Ventures and XYZ Capital, according to a report from Crunchbase.
With the capital, the company is looking to increase its product development efforts. This will include seeking new coverages to offer customers and finding new ways to improve insurance operations, including enrolment, policy generation, claims and more.
Alongside the close of the round, the company has launched its debut product.
LifeRaft’s CEO Ian Blumenfeld said it wants to be an insurance policy in your pocket when an unexpected hospitalisation happens. The InsurTech’s first product is a hospital supplement insurance policy that provides monthly premium options and a cash benefit when they are admitted to hospital for a covered reason.
Its policy lifecycle is entirely digital, from application through to claims.
InsurTech companies Kin Insurance and Bright Health both raised $500m funding rounds earlier in 2020. These two deals are among the ten largest FinTech funding rounds of the year.
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