Authentic, a turnkey insurance platform that specialises in captive insurance, announced the close of a $5.5M seed round.
The InsurTech is set to utilise the capital raised to launch its “Captive in a Box” platform, designed to support vertical SaaS companies, franchises, and other groups to reap the benefits of captive insurance.
The round was led by Slow Ventures with participation from Altai Ventures, MGV, Upper90, Clocktower, Commerce Ventures, Mischief Ventures, Core Innovation Capital, and prominent insurance executives.
Cole Riccardi, CEO & founder of Authentic, said: “Captive insurance provides many benefits to organisations and their members, but until now, setting one up was a very long and expensive process.
“Through Authentic’s platform, anyone can create their own captive insurance program and realise the benefits within days.”
Authentic’s “Captive in a Box” platform now makes it possible for any vertical SaaS company, franchise, association, etc., to launch captive insurance programmes for their members in a matter of weeks, handling all of the logistical challenges associated with implementing the solution.
The New York-based firm not only allows its partners to get a commission on every policy sold, but they also keep the majority of underwriting profit.
Marc Schroder, founder of MGV, said: “Over the last few years, we’ve seen a lot of software startups becoming FinTech companies by embedding payments and lending products to monetise their customer base.
“Insurance is the next embedded product, but what makes Authentic a win-win is that software companies, roll-ups, etc., can create a new revenue stream while its members get hyper-tailored insurance policies at a fair price.”
Authentic has launched with initial customers and already has a waitlist of customers launching throughout Q4 2023. Currently, the InsurTech is offering Business Owner’s Policy (BOP) coverage and is targeting businesses in the food & beverage, salon & spa, retail, fitness, and professional services.
Sam Lessin, Managing Partner, Slow Ventures, said: “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.
“Authentic’s partners stand to benefit from sharing data to better assess and price risk, as they are the ones that reap the rewards from more successful programmes.”
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