Authentic Raises $5.5 Million Seed Round to Launch "Captive in a Box" Insurance Platform
Authentic's Turnkey Captive Insurance Platform Allows Any Vertical SaaS, Franchise Group, Associations, and Other Organizations to Launch Captive Insurance Programs
According to the NAIC, 90% of Fortune 500 Companies utilize captive insurance, which is a form of "self-insurance." With captive insurance, organizations create their own insurance companies instead of buying insurance from a broker or insurance carrier.
Captive insurance provides many benefits, including creating an additional revenue stream for parent companies, tailored insurance coverage, lower insurance premiums, and more. For the last 50 years, only large corporations have mainly utilized captive insurance companies due to the cost and complexity of setting one up.
Authentic's "Captive in a Box" platform now makes it possible for any Vertical SaaS company, franchise, association, etc., to launch captive insurance programs for their members in a matter of weeks. Authentic's turnkey platform handles all of the logistics of setting up a captive insurance company, including:
- Legal: Setting up a Domicile, Administration, etc.
- Underwriting: Filing Rates with Regulators, Pricing, Actuarial Analysis, etc.
- Reinsurance & Capital: Reinsuring, Capitalizing Captives, etc.
- Claims Management, Customer Servicing, and more.
"Captive insurance provides many benefits to organizations and their members, but until now, setting one up was a very long and expensive process," explained
Before Authentic, there were two ways Vertical Saas companies, franchises, etc., could monetize insurance. First, they could sell their leads to insurers and receive a one-time lead fee. The second option was to partner with an insurance broker or carrier and get a commission on each policy sold.
Authentic not only allows its partners to get a commission on every policy sold, but they also keep the majority of underwriting profit. Partnering with Authentic requires no engineering or insurance resources. All that is required from Authentic's partners is to insert a line of code into their platform to start selling insurance.
"Over the last few years, we've seen a lot of software startups becoming FinTech companies by embedding payments and lending products to monetize their customer base," explained
Authentic, based out of
"Authentic's 'captive in a box' allows them to sidestep the current distribution problems of adverse risk selection that the insurance industry has struggled to overcome," explained
Authentic has launched with initial customers and already has a waitlist of customers launching throughout Q4 2023. Currently, Authentic is offering Business Owner's Policy (BOP) coverage and is targeting businesses in the food & beverage, salon & spa, retail, fitness, and professional services.
For more information about Authentic, visit: https://www.authenticinsurance.com
or contact
About 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 benefits to small business groups.
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SOURCE Authentic
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