Authentic enables any vertical SaaS, franchise group, association and other organizations to start their own insurance company!
NEW YORK, Sept. 20, 2023 /PRNewswire/ — Authentic, the “captive in a box” insurance platform announces the close of a $5.5m seed financing. The round was led by Slow Ventures with participation from MGV, Altai, Clocktower, Commerce Ventures, Mischief Ventures, Core Innovation Capital, and Upper90 in addition to a number of insurance executives. Authentic makes it possible for any SaaS company, association, franchisor, or roll-up to monetize insurance with no integration work.
Insurance distribution is evolving. The concept of “embedded” insurance has recently gained attention – giving insurance companies access to customers through unique channels outside of direct search and traditional brokers – both incredibly costly.
Typically, to “embed” or cross-sell insurance, a VSV (“Vertical Software Vendor”) or other channel would set up a referral program or create an agency. However, the dollar impact here is low compared to embedding other financial products such as payments. By starting a captive insurance company, partners can capture underwriting profit – a much more meaningful dollar impact than lead fees or commission splits.
Setting up a captive is really hard. Authentic compresses all of the insurance complexity associated with captive insurance and delivers a turnkey platform for distribution partners. These partners (vertical SaaS, franchises, roll-ups, etc.) provide the audience, Authentic provides the insurance.
“We’ve created a structure where Authentic and distribution partners are 100% aligned. As a result, we can “co-underwrite” risk and generate more insurance profit overall. We’ve done the heavy lift of building an end to end modern insurance stack, taking away cost and complexity. Partners can get up and running without any insurance or engineering resources.” – Cole
Sam Lessin, lead investor from Slow Ventures, explains, “Authentic’s ‘captive in a box’ allows them to sidestep the current distribution problems of adverse selection that the insurance industry has struggled to overcome. Their partners stand to benefit from sharing data to better underwrite, as they are the ones that benefit from more successful programs.”
“Authentic has the perfect blend of insurance and technology expertise. The captive platform will alter how businesses purchase and manage insurance. They’re redefining and drawing new boundaries around insurance and risk pools. Now, any company can become an insurance company and the benefits can be reaped by everyone in the value chain,” said Marc Schroder, Cofounder of MGV.
Authentic is launching with initial distribution partners in May. Do you have access to small businesses? Start your own turnkey captive insurance company with Authentic!
Authentic enables SaaS platforms, associations, and other communities to create their own captive insurance programs. Captives bring financial and coverage benefits that large enterprises have leveraged for the past ~50 years. Authentic’s tech-enabled platform compresses the complexity of captive insurance and delivers the benefits to small business groups.