Dayforward, a digital life insurance company founded in 2021, is changing the way customers interact with life insurance with its digital capabilities, and is bridging the insurance gap in the industry by simplifying and streamlining the process.
Aaron Shapiro, founder and CEO of Dayforward, saw the opportunity for a digital revolution in the life insurance industry. Previously the founder and CEO of Huge, a digital transformation consultancy that was acquired by Interpublic Group, Shapiro wanted to continue his work of transforming businesses on a larger scale. After personally experiencing the difficult and often tedious process of buying a life insurance policy, Shapiro realized that the industry lacked digital innovation, especially in distribution and underwriting.
“We really thought holistically about the whole life insurance business and how to rethink it from the ground up from a much more modern perspective… And so we took the step to become an insurance company, which is pretty unique,” says Shapiro. “We are actually a company that issues policies and takes the risk, unlike most insurance companies who are often brokers or agents and then actually resell third party products.”
In addition to being able to grow digitally, Shapiro shares that he is also passionate about social issues related to life insurance. JAG Institute reports that in 2020, one in 17 children under the age of 18 will lose a parent in the United States. According to LIMRA, 129 million Americans do not have life insurance at all.
“Most families do not have sufficient financial support. So it has a very, very big material impact on their finances. money,” Shapiro explains. “Often there is an adverse effect such as a death in the family, a terrible medical problem that occurs, bankruptcy and all such catastrophic events. And if you look specifically at life insurance, only about half of all families have life insurance. . So we felt like this was a really big issue that needed to be addressed if we could just bring a level of simplicity and just smarter and simpler lighting.”
To solve life insurance challenges, the Dayforward team has created a complete technology stack that includes capabilities for all insurance processes, from AI-based underwriting to policy administration. Insurtech is also committed to making life insurance more affordable for families by simplifying coverage options, eliminating confusion and streamlining the process.
Shapiro explains that people looking to purchase life insurance are often confused about coverage options and overwhelmed or frustrated by the lengthy process. Dayforward will transfer the income of the deceased insured to the children of his family as part of the policy.
“[Life insurance] “It’s a very complex product, so we decided we had to make it much, much easier…” says Shapiro. “Therefore, when you buy our policy, you do not have to decide which policy to buy … And then you can be sure that, no matter what happens, your income will continue, and your family level will remain the same until all your children become adults who can support themselves. So we came up with a much simpler version of life insurance that we’ve seen, and it’s really resonated with families.”
Insurtech also makes underwriting easy — a process that typically takes four to six weeks to get a life insurance policy due to physical health checks takes just a few minutes via Dayforward.
“We have automated the entire process with a custom underwriting system we have developed that allows most people to be fully insured within 15 minutes. Thus, from the moment you enter our website, you fill out an application, we automatically issue an underwriting and then you leave with a fully completed policy, ”explains Shapiro.
Insurtech recently announced the acquisition of Commercial Travelers Life Insurance Company, which has expanded Dayforward’s coverage across much of the US and licensed more products. Its latest $25 million funding round, led by AXA Venture Partners, raised insurtech’s total capital to $45 million, which will be used to advance the company’s goals of expanding its reach and expanding its products and solutions.
“With this acquisition, we were able to sell not only life insurance, but also annuities, disability insurance and even health insurance if we wanted to,” explains Shapiro. “While our primary focus is on our current product that we sell, as we grow we are committed to having a complete suite of financial security solutions for families where we believe there is an opportunity to provide the same level of simplicity and just smarter coverage.” that we are. insure life.