Healthcare.com, a data-driven and AI-enabled insurtech platform, announced raising an oversubscribed $180 million financing round led by funds managed by Oaktree Capital Management, according to a press release.
The company says it will use the funding to accelerate its investment in data science, product development and engineering, with plans to hire several key roles as part of an ongoing hiring spree. Healthcare.com’s has already increased its workforce by 130% since January and now includes worldwide 370 employees.
The round included $130 million in Senior Non-Convertible Preferred and more than $50 million of Series C Preferred equity, and included participation from founders (Jeff Smedsrud, Jose Vargas, Howard Yeh) and existing investors Axis Capital, Second Alpha and Link Ventures.
Healthcare.com insurtech platform utilizes deep data and AI algorithms to match individuals with healthcare products, including its proprietary insurance plans and customizable insurance product bundles. The platform also offers multi-product purchase options within a single transaction, which it says has led to large growth in the past year.
The company says it has helped millions of people connect to healthcare products in the past year and has achieved a 97% increase in direct-to-consumer enrollments in 2021.
“We are thrilled to partner with premier investors who recognize that HealthCare.com is positioned for its next phase of explosive growth,” Healthcare.com CEO Don Loonam stated in the release.
“There is a crisis of cost, transparency and access stemming from complexity and a slow pace of change in healthcare and health insurance. The consumer is at the center of our offering, and our ultimate product is their end-to-end healthcare experience. We aim to create an iterative relationship with the consumer that will span decades, improving lifelong wellness,” Loonam said.
As part of the financing, Managing Director and Co-Head of North America for Oaktree’s Global Opportunities strategy Brian Laibow and Chief Strategy Officer for Axis Capital Linda Ventresca will be joining the company’s Board of Directors.
The announcement follows a growing adoption trend for AI, with machine learning and data-driven analytics increasingly finding their way into financial operating systems and adjacent markets like insurance.
A recent Research and Markets report found that AI platform revenues within insurance would grow by 23% to $3.4 billion between 2019 and 2024, with traditional insurance companies struggling to price policies correctly.
In other recent fintech news, Credible acquired online insurance marketplace Young Alfred in a push to offer consumers a “one stop shop” for lending and insurance. The US House Select Committee also held a roundtable with industry leaders to talk about the ways Congress can work to expand access to banking services to underserved communities.