Marketing/Revenue Metrics for Insurtech Companies
To understand marketing and revenue metrics with a focus on the insurtech companies of: Bestow Life, Haven Life, LadderLife, Lemonade, Sofi, DeadHappy and Fabric to only expand to other large insurers if the data is not available in order to inform a powerpoint presentation to show the general metrics for this industry.
Marketing and Revenue metrics to include for each insurtech company are:
Paid media Spend: advertising spend, per year for companies
Total leads: Number of leads a company can bring in with this media spend
Cost per lead: for specific companies (not CPL insurance in general)
Conversions YoY: how many customers can they convert
Organic growth of companies: how many policies are brought in organically
Cost per policy: How much does it cost in paid marketing to go through the process of being targeted and then get them to sign up)
Revenue of companies (preferably insurtech startups)
Our initial research on marketing/revenue metrics for insurtech companies with a focus on Bestow Life revealed insights. Here are the key pieces of information we found:
Marketing/Revenue Metrics for Insurtech Companies:
- A scan of information that is pubicly available did not provide any financial data on the annual advertising spend of Bestow. However, the Bestow marketing team has shared publicly that their approach is to minimize advertising spend and outsmart their competitors instead by getting in front of the right people with the message that matters most to them.
- Regarding leads and conversions, Bestow's approach and platform is not designed to focus on capturing leads. As one industry expert explained of their online process, Bestow is confident enough in their product that they can offer a quote without needing to capture lead information that also means not receiving any annoying calls and e-mails about buying when all that was desired was a quote. Instead, Bestow maximizes customer referrals that they make to their friends and families.
- Although there was no information that is publicly available on how many policies are brought in organically by Bestow, they have recently hired a talented and dynamic group of executives that will enable them to increase their customer base, scale further, and introduce a broader set of unique and attractive products to the market.
- There is no information that is publicy available about how much it costs in paid marketing to go through the Bestow process. However, the general cost of their policies is a 10-20 year term life insurance plan that starts at $8 dollars a month for up to $1 million dollars in coverage, and a 2 year life insurance plan that starts at $3 dollars a month for up to $500,000 dollars in coverage.
- Bestow's estimated annual revenue is currently $15 million dollars a year, and they have raised over $40 million dollars from venture firms such as Valar Ventures, NEA, 8VC, Core and Morpheus.
Proposed next steps:
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We recommend additional research to now focus on the 6 insurtech companies of: Haven Life, LadderLife, Lemonade, Sofi, DeadHappy and Fabric. For each company, we will provide marketing and revenue metrics as publicly available to focus on 7 key data points: Paid media Spend: (advertising spend, per year for companies); Total leads: (number of leads a company can bring in with this media spend); Cost per lead: (for specific company and not CPL insurance in general); Conversions YoY: (how many customers can they convert);Organic growth of company: (how many policies are brought in organically); Cost per policy: (how much does it cost in paid marketing to go through the process of being targeted and then get them to sign up); and Revenue of company (preferably for insurtech startups) that is available without a calculation.
We also recommend additional research to attempt to gather any data that may be publicly available from a larger life insurer than Bestow Life in the key revenue and marketing metric areas that were not available for Bestow Life of: annual advertising spend, total leads, cost per lead, conversion YOY, number of policies brought in organically, and cost per policy for paid marketing.