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Fledgling Boston-based company called Openly is preparing to launch homeowners insurance coverage later this year, and unlike most tech startups plans to use independent agents rather than going direct to consumer.
In-depth interview with Ty Black, one of the two founders, is in this link:
https://agencychecklists.com/2018/03/06/mass-insurtech-openly-22256/
Some excerpts of interest:
• "We are about to launch a new insurer platform selling innovative, modern products through independent agents—starting with a homeowners product. We want to help agents shine in the areas where they add real value vs. direct carriers (coverage expertise and advice, choice, finding high-value customers) while improving significantly in the areas where they lag (modern speed and convenience, operational cost)."
• "Not all agents will weigh these equally, but we offer three basic advantages. First is comprehensive and innovative coverage, and I can talk more about that if we want. The second advantage is radically simplified and more intuitive processes and technology—from onboarding to quoting to binding to service. Agents will spend far, far less time asking underwriting and pricing questions, re-writing policies when closing dates change, etc. Third, our pricing will sometimes allow the agent to sell a customer luxury coverage at a rate that beats the direct competitors. And we are kidding ourselves if we say price never matters. Give us some at-bats, and you will see what we can do."
• "We are not yet ready to formally appoint agents. When we are ready, it will be sort of like normal carrier appointments, but with two significant differences. First, we believe that like most other insurance processes, the appointment process today is overly complicated, opaque, and slow. We will ask for some basic agency information in a convenient format, make a quick decision, and go from there. Think hours or days, not months. Second, onboarding and training will be more like using a new toaster and less like getting qualified to land a 747. Our coverages allow agents tons of flexibility, but the interface is so simple that a consumer probably could use it if we let them, and there is no proprietary jargon."
• "Maybe this is controversial, but if you are an agent and need to understand the inner workings of our pricing, we are not the right carrier for you. It is quite a black box under the hood. It starts with what is the current state of the art at the best direct carriers and then goes a step further. So it will not always be in line with other carriers’ pricing—especially not other independent agency carriers. This pricing might sometimes worry agents, but I would argue it is great news. It means our pricing will we broaden their overall sweet spot, rather than just duplicating what they already have. This is precisely why choice is such a valuable weapon for them, so take advantage of it. And to say it is complicated under the hood is not to say it is complicated for the agent or consumer. Quite the opposite. You get to a bindable quote quickly with just a few questions and can decide if we are competitive or not. You just cannot take it personally if we are not competitive in a particular case because you will drive yourself crazy trying to reverse-engineer the logic behind our pricing."
• "Openly will do most of the operations of an insurance carrier but will be backed behind the scenes by the risk capital of an established partner carrier. We are not yet ready to disclose the partner, except to say that they will have an A.M. Best A- rating or better."
Much more in the link. Don't know how it'll go, but after hearing about so many startups going direct to consumer, refreshing to hear of one that sees value in independent agents instead of middlemen.
In-depth interview with Ty Black, one of the two founders, is in this link:
https://agencychecklists.com/2018/03/06/mass-insurtech-openly-22256/
Some excerpts of interest:
• "We are about to launch a new insurer platform selling innovative, modern products through independent agents—starting with a homeowners product. We want to help agents shine in the areas where they add real value vs. direct carriers (coverage expertise and advice, choice, finding high-value customers) while improving significantly in the areas where they lag (modern speed and convenience, operational cost)."
• "Not all agents will weigh these equally, but we offer three basic advantages. First is comprehensive and innovative coverage, and I can talk more about that if we want. The second advantage is radically simplified and more intuitive processes and technology—from onboarding to quoting to binding to service. Agents will spend far, far less time asking underwriting and pricing questions, re-writing policies when closing dates change, etc. Third, our pricing will sometimes allow the agent to sell a customer luxury coverage at a rate that beats the direct competitors. And we are kidding ourselves if we say price never matters. Give us some at-bats, and you will see what we can do."
• "We are not yet ready to formally appoint agents. When we are ready, it will be sort of like normal carrier appointments, but with two significant differences. First, we believe that like most other insurance processes, the appointment process today is overly complicated, opaque, and slow. We will ask for some basic agency information in a convenient format, make a quick decision, and go from there. Think hours or days, not months. Second, onboarding and training will be more like using a new toaster and less like getting qualified to land a 747. Our coverages allow agents tons of flexibility, but the interface is so simple that a consumer probably could use it if we let them, and there is no proprietary jargon."
• "Maybe this is controversial, but if you are an agent and need to understand the inner workings of our pricing, we are not the right carrier for you. It is quite a black box under the hood. It starts with what is the current state of the art at the best direct carriers and then goes a step further. So it will not always be in line with other carriers’ pricing—especially not other independent agency carriers. This pricing might sometimes worry agents, but I would argue it is great news. It means our pricing will we broaden their overall sweet spot, rather than just duplicating what they already have. This is precisely why choice is such a valuable weapon for them, so take advantage of it. And to say it is complicated under the hood is not to say it is complicated for the agent or consumer. Quite the opposite. You get to a bindable quote quickly with just a few questions and can decide if we are competitive or not. You just cannot take it personally if we are not competitive in a particular case because you will drive yourself crazy trying to reverse-engineer the logic behind our pricing."
• "Openly will do most of the operations of an insurance carrier but will be backed behind the scenes by the risk capital of an established partner carrier. We are not yet ready to disclose the partner, except to say that they will have an A.M. Best A- rating or better."
Much more in the link. Don't know how it'll go, but after hearing about so many startups going direct to consumer, refreshing to hear of one that sees value in independent agents instead of middlemen.
