The economy's abrupt and dramatic change seen as reason for insurtech platform's move
Less than three months after receiving capital worth $125 million, insurtech platform Policygenius, has laid off 25% of its workers.
Policygenius life insurance agent Jamisson Buck wrote on LinkedIn that the company had made the "very difficult decision to lay off 25% of its staff."
"I unfortunately was part of that layoff. I want to thank the entire team for the last 19 months. It's now time to search for the next opportunity," wrote Buck.
An estimated 170 employees have reportedly been affected.
Jennifer Fitzgerald, CEO and co-founder of Policygenius, told TechCrunch that, like many other businesses, the abrupt and severe shift in the market has "forced us to adapt our strategy."
"After careful consideration, we announced the difficult and necessary decision to reduce the size of our workforce. With these changes, we remain confident in the future of our company, our continued innovation, and the excellent service we continue to provide our customers every day," Fitzgerald was quoted as saying.
Policygenius stated its house and auto insurance business had expanded dramatically during its Series E investment round in March, with new written premiums increasing "more than 6x from 2019 to 2021."
In a previous statement, it said, "Policygenius continues to be the only tech-enabled brokerage and distribution platform to have successfully scaled and diversified across life and home and auto insurance."
"The company will use the new capital to continue to invest in the growth of its core businesses of life, disability, home, and auto insurance, as well as new no-exam life insurance offerings and Policygenius Pro."
As VC money disappears during the economic recession, digital businesses have laid off over 20,000 employees globally since April, including over 8,000 at edtech startups in India.
