Acorns enters insurance
Acorns , the fintech startup helping people save and invest, has entered the insurance space. Up until recently Acorns’ insurance activity was limited to its Found Money feature, which allowed users to shop or get quotes from select partners in exchange for cash incentives. For example, Acorns users who choose to get a home, auto or renters quote from Liberty Mutual would get $5 invested into their Acorns Invest account by the insurer.
Now however, the startup that counted 4.5 million users a year ago when it raised $105 million, is taking insurance more seriously. Acorns established an insurance agency – Acorns Insurance Services, LLC – which is licensed in 40 states, along with introducing Acorns Protect, its insurance offering which is visible via the app’s main page.
Users who click on the new insurance feature are presented with a short insurance questionnaire:
After answering the questions, users are presented with five insurance products: Home, renters, auto, life, and pet. For each product Acorns features its “trusted partners” and users get $5 invested into their account if they choose to receive an insurance quote.
According to its site, Acorns may receive lead generation fees for each consumer it directs to an insurance company’s website, and it may also receive premium commissions for placing and servicing insurance policies on behalf of insurance companies.