A.I.-driven life insurance company Sproutt is launching with $12 million in Series A funding.
"Sproutt is a new kind of life insurance company," Yoav Shaham, co-founder and CEO of Sproutt, told Cheddar in an exclusive interview. "The traditional industry, which started as taking mutual care of one another, has actually evolved into an industry that is staying behind."
Shaham points out that traditional insurance companies punish people for bad habits like smoking and high BMI, while Sproutt rewards healthy customers. He also noted that attributes like exercise, eating healthy, and owning a pet lower the risk of early death.
"This is our promise," Shahan said. "To be able to reward people for having a healthy lifestyle."
Sproutt is backed by Guardian Life, one of the largest insurance companies in the U.S. The service will use its proprietary technology to set prices for life insurance policies for top insurers to underwrite.
State of Mind Ventures and Moneta Capital also participated in this financing round.
Shahan says the process of pairing a customer with the right life insurance through Sproutt's Quality of Life Index can be completed in a single day.