The insurance technology sector, known as insurtech, is witnessing a transformative shift with the emergence of \”embedded health,\” a concept that integrates health functionalities into service platforms, particularly those run by insurers. This development comes as an evolution from \”embedded insurance,\” where insurance products are offered as add-ons during consumer transactions, enhancing sales and customer retention.

Embedded health has garnered significant interest among investors and industry stakeholders, driven by the growing demand for personalized health and wellness services. One of the frontrunners in this burgeoning field is The Carevoice, a Shanghai-based company that has recently secured $10 million in Series B financing, primarily led by the U.K.-based Apis Insurtech Fund I. This investment boosts The Carevoice\’s total capital to approximately $20 million, marking a significant milestone in a period where venture capital investment has shown a downturn.

Founded a decade ago, The Carevoice has expanded its operations across 15 countries, positioning itself as a pivotal player in the embedded health category. Despite the overall slowdown in funding for digital health startups in 2023, The Carevoice managed to achieve a healthy cash flow and double its revenues. The company is on track to reach $10 million in revenues this year, benefiting from a mix of recurring licensing payments and one-time implementation fees.

The embedded health model stands in contrast to traditional distribution strategies, responding to the increasing consumer demand for integrated health services. This trend reflects a broader shift towards more holistic approaches to health and wellness, encompassing physical, mental, and cognitive aspects. For insurers and service providers, embedded health offers an opportunity to deepen customer engagement and offer value-added services that go beyond traditional insurance products.

Sebastien Gaudin, co-founder and CEO of The Carevoice, highlighted the company\’s resilience and adaptability in navigating the challenging investment landscape. Despite initial setbacks in their Series B funding due to market fluctuations and investor caution, The Carevoice successfully adjusted its fundraising strategy and continued its growth trajectory. Gaudin emphasized the efficiency and cost-effectiveness of The Carevoice\’s solutions compared to traditional IT and consulting services, noting the ability to deploy health tech solutions rapidly.

The company\’s flagship offering, CareVoiceOS, an operating system built for insurers, exemplifies the potential of embedded health to revolutionize the industry. By enabling functionalities like illness detection through face scanning and access to health checkup centers, The Carevoice is paving the way for a new era of personalized health care solutions.