New HO company in California, Bamboo

[Weedlebug]

So in CA we gave a new HO company in the market place, Bamboo. It's a new insuretech company, underwritten by XL Caitlin. The developers come from McGraw Group/Pacific Specialty. They outsource everything but their core operation.

What are your thoughts about these new insuretech companies like Lemonade or Hippo?

Lemonade and Hippo are direct companies, while Bamboo is offered by agents.

There's not much history on Bamboo, so I hesitate placing my insured with them until I see how they handle their claims.

Bamboo states their quoting platform is simple to use, with little underwriting required so the insured has no to little disruption in their lifes.

Let's talk...

 

[marindependent]

I welcome more carriers.

You can sell Hippo as an Agent.

 

[Markthebroker]

I vaguely remember hearing something about them a while back. I don't remember much, but it was nothing bad, lol.

Ca is going to be a very interesting place for homeowners insurance over the next decade or so. It will continue to be if we don't do something about our land management.

 

[Mike007]

I welcome more carriers.

You can sell Hippo as an Agent.

I just contacted Hippo if they have 1099 contracts. Their response:

This is a non-captive, 1099 commission-only based position and you generate your own leads. We provide E&O for self employ-employed qualifying individuals and there are no fees.

Very interesting. Does anyone know the commission payout is? Is there something similar like Hippo on the Auto insurance?

I will contact them soon and see if it's something I'm interested in promoting, considering I got rid of my P&C agency a while back.

 

[Mike007]

Can a business be sustained purely on covering a client's home/house and avoiding their cars? Cars are such a big part of people's lives. The urge to combine policies into one company for discount rates, for simplicity...wouldn't it cripple these companies long term?

When I ran my P&C agency, I have never had a client who had their cars and homeowners insurance in two different companies. They have always been placed in just one company.

 

[Markthebroker]

Can a business be sustained purely on covering a client's home/house and avoiding their cars? Cars are such a big part of people's lives. The urge to combine policies into one company for discount rates, for simplicity...wouldn't it cripple these companies long term?

When I ran my P&C agency, I have never had a client who had their cars and homeowners insurance in two different companies. They have always been placed in just one company.

1,275,900 homes in the U.S. according to the census. Yes, I think a business could sustain itself only insuring homes.

There are companies that only sell insoles, or only pizza, or only hats that do just fine. I "only" sell commercial insurance, and turn away personal insurance, health, and most life, and I do just fine. I'm making a lot more money now than when I sold commercial, AND personal, AND legal AND life.

 

[EugeneM]

XL Caitlin is legit. Pretty good sign if they are underwriting it.

 

[Mike007]

I "only" sell commercial insurance, and turn away personal insurance, health, and most life, and I do just fine. I'm making a lot more money now than when I sold commercial, AND personal, AND legal AND life.

But those product lines are different. Imagine if you sold commercial insurance to a business owner. You insured his building, liability, supplies, tools, etc but when he says, "what about the cars I use for my business?"...You say, "Well, I don't offer car insurance for business, you have to go get your cars insured elsewhere..."

So in your instance, it would be you insuring people's business but do not cover their cars they use for business. Is that a doable business?

Because this is what is going to happen to these business. After insuring the home, the customers will be..."What about my cars?". What would these company say? "Go elsewhere so that someone else can insure both the car and the home?"

As a Broker, the Broker can insured that car elsewhere but as a person or company that just sells homewners/renters insurance, what are they going to do?

 

[Markthebroker]

But those product lines are different. Imagine if you sold commercial insurance to a business owner. You insured his building, liability, supplies, tools, etc but when he says, "what about the cars I use for my business?"...You say, "Well, I don't offer car insurance for business, you have to go get your cars insured elsewhere..."

So in your instance, it would be you insuring people's business but do not cover their cars they use for business. Is that a doable business?

Because this is what is going to happen to these business. After insuring the home, the customers will be..."What about my cars?". What would these company say? "Go elsewhere so that someone else can insure both the car and the home?"

Yes I think it's doable.
Good idea? No
Most profitable? No.

Not ideal, but doable. There are some agents that only do w.c.

 

[Mike007]

Yes I think it's doable.
Good idea? No
Most profitable? No.

Not ideal, but doable. There are some agents that only do w.c.

I tested their website and I love it. I would not mind selling P&C insurance their way. I just don't know if it can sustain a business long term having the car insurance elsewhere...elsewhere as with my competitor.