An entrepreneur sheds light on less-discussed issues faced by new startups in the space, including digital customer acquisition, regulatory requirements, and the adverse selection problem.
The following is a guest post authored by Krishna Kaliannan (@kkal24), founder of Thrive Responsible Insurance. Views are his own.
A number of investors have written great posts detailing various “opportunity patterns” in the insurance industry.
While these act as great starting points, they don’t dive too deep into some of the more practical and operational issues one faces when starting a new company in the space.
I’m writing this from the point of view of an entrepreneur working in the industry to shed some light on lesser known insurance topics, which I think are very important for both entrepreneurs and investors to consider.
1. Managing General Agent/Underwriter Appointments
Getting an MGA appointment is harder than you probably think it is. Many carriers are trying to actively cut the number of agents they have, not expand that set. And few are actively looking to spend time gambling on a startup.
As a starting point, you could look through which carriers currently have the largest number of MGA appointments:
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