Israeli insurtech startup Sayata, which offers a solution for insurance brokers and carriers to grow their business insurance portfolios, has added $35 million to its Series A fundraise. When added to the $17 million that it brought in last summer this brings the company’s total raised to $52 million.
The raise comes in spite of a recent drop in the value of insurtech companies. Hippo Holdings Inc., is an Israeli insurtech Firm in the field of home insurance. Its stock has plummeted from a high of more than $14 a share to only a little over $2. But it has only been trading since last year. Lemonade is another Israeli insurtech firm to be in trouble, seeing an even greater drop in its stock’s value.
Lemonade stock has plummeted from an all time high of almost $164 to just under $30. The insurtech company’s market cap has plummeted from a high of almost $9 billion to just $1.85 billion as of start of trading Tuesday.
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A reason for the losses may be that insurtech firms may not be a safe bet if insurance companies start to have trouble paying off on all sorts of health policies, life insurance policies and policies that cover business losses.
Sayata launched its insurtech in 2016 to insurance brokers and carriers that focus on small-to-medium businesses.
The Sayata platform streamlines the quote-bind-issue process allowing insurance professionals to seamlessly place more insurance policies in a fraction of the time. Sayata provides an end-to-end insurtech technological solution along with educational tools, giving our partners the ability to grow their book quickly and efficiently. To date, over 1,000 users across 75 brokerages and carriers partner with Sayata to grow their SMB book.
Asaf Lifshitz, co-founder and CEO of Sayata, told Tech Crunch how Sayata’s tech helps companies. “Securing business insurance takes a big chunk of a broker’s day. Hours are spent gathering quotes, helping the client make sense of them, processing applications and a lot of back and forth with insurance providers to finalize coverage.”
This is where insurtech comes in. It automates much of the tedious day to day work involved in the insurance industry.