The insurance technology sector has faced challenges in recent years. Early insurtech companies that emerged about 7 years ago with promises to disrupt the insurance industry have either been acquired or are struggling in the public markets today.
However, a new trend called “embedded insurance” has gained momentum in the last couple of years. This approach involves integrating insurance products into third-party companies’ customer journeys to enhance sales and retention. Instead of customers actively seeking coverage, insurance becomes an add-on at the point of purchase, such as during flight bookings. Investors are showing interest in this model, emphasizing the importance of solid economics and traction for startups in this space.
The Carevoice, an embedded insurance solution provider originally from Shanghai with a presence in 15 countries, recently secured $10 million in a Series B financing round led by U.K.-based Apis Insurtech Fund I. This brings the total capital raised by the company to around $20 million.
Despite a slowdown in venture investment, The Carevoice managed to achieve healthy cash flow and secure funding commitments for its Series B by mid-2022. The company doubled its revenues in 2023 and is on track to reach $10 million in revenues this year through recurring licensing payments and one-off implementation fees.
The Carevoice aims to expand its partnerships with insurers globally and invest in enhancing CareVoiceOS, an operating system developed for insurers, using the fresh funding. The company’s streamlined development process allows for quick implementation of innovative health tech solutions, setting it apart from traditional IT and consulting service providers.
With a team of approximately 40 employees, The Carevoice is focused on accelerating its growth and innovation in the embedded insurance space to provide cutting-edge solutions to insurers worldwide.
