HSCM & Anthemis invest in life insurance fintech Inclined
HSCM Ventures, the insurtech-focused division of Hudson Structured Capital Management’s reinsurance-linked investment operation, has led a $15 million Series A round for life insurance fintech Inclined Technologies, with investor Anthemis also participating in the round.
It wants to do this by leveraging its technology to help life insurance consumers significantly increase the value of their life insurance policies.
The $15 million Series A funding round secured by Inclined Technologies was led by HSCM Ventures, with participation from Anthemis Group and several other new and existing investors.
Inclined said that approximately $150 billion is currently borrowed against whole life insurance policies today in ways that are inefficient.
This drives a suboptimal composition of the cash value and the final death benefit of these policies, the startup believes, so Inclined wants to provide quick and efficient access to equity policyholders’ built-in whole life insurance.
Inclined’s technology platform addresses two inherent market problems, the “front-end” problem of acquiring and structuring raw data from whole-life carriers, and the “back-end” problem of effectively managing security in a way that can deliver large-scale assets to our financial institution partners,” the startup explained.
“Inclined is a mission-driven company that provides solutions to help policyholders access their savings more efficiently and cost-effectively,” said Inclined CEO and co-founder Joshua Wyss. “We are excited to partner with HSCM Ventures and the rest of our investors to tackle the $1 trillion lifetime cash access opportunity. With this capital, we will continue to improve the way people access the equity they have built up in whole life policies, while serving as a trusted technology partner for life insurance companies and financial institutions across the U.S. This is a market that has yet to benefit from modern technology.”
Vikas Singhal, Partner at HSCM Ventures, will take a seat on the Inclined Board of Directors and also commented, “We strongly believe in the Inclined mission and are excited to partner with the team. Inclined engages carriers, policyholders and lenders in a very aligned and coordinated way, and we see policy loan refinancing as just the beginning of what can be unlocked through these integrated relationships.”
Inclined aims to partner with whole life advisors to provide policyholders with access to a secure revolving line of credit with certainty of the cash value of whole life insurance, all within a fully automated experience.
Inclined Line of Credit (iLOC) is flexible, meaning it can be drawn or repaid flexibly at the convenience of the policyholders.
This means that value can be realized by policyholders, while at the same time whole life insurance becomes a financial instrument that is potentially more suitable for today’s lifestyle.
