Dallas-based digital life insurance provider Bestow will acquire Centurion Life Insurance Company, an Iowa-based insurer with licensing in 47 states and the District of Columbia. Terms of the deal were not disclosed.

Why should we care?
As the Wall Street Journal reported, Bestow is part of a group of insurtechs that have become life insurance carriers themselves, instead of selling traditional insurers’ policies. These companies are betting on technology to better assess risk and in turn, grow profit margins. Through the Centurion acquisition, Bestow will become a nationally licensed carrier, as Centurion’s parent Wells Fargo scales back on insurance operations. Building on more than 800% year-over-year sales growth, the acquisition of Centurion will allow Bestow to make advances in product design, pricing, underwriting, and distribution. “We’ve known since the start that becoming a carrier would be a necessary part of our growth strategy. We’re thrilled to build on our momentum with this acquisition to enable more customers to get the life insurance they need,” Bestow CEO Melbourne O’Banion said in a statement.