Authentic Intro
Authentic Intro
The Authentic team is excited to share what we’ve been up to these past few months!
Bigger picture
Insurance took form in the 1700s through local communities pooling assets for a rainy day. At Authentic, we’re returning insurance to these roots. However, modern communities exist outside of geographic boundaries; our goal is to use technology to restore insurance to its first principles.
What is 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 the benefits to small business groups (and individuals… eventually!).
What is a captive?
A captive is a “user-owned” insurance company (similar to a mutual, reciprocal, etc.) In this framework, the profit belongs to the captive “owner,” instead of a third-party insurance company. Authentic administrates captives for our partners so they can monetize insurance in the optimal way. While Authentic is replacing your traditional insurance company, the economics actually go back to our partners.
Captives have historically been used by 1) large organizations to retain profit or 2) mispriced groups to pay lower prices. But why shouldn’t everyone benefit from this model?
What does this mean in practice?
To start, we’re partnering with SaaS companies and associations serving SMBs. With one line of code from Authentic, our partners can offer their own insurance product, hyper tailored towards community members. Authentic takes a fee to underwrite, handle claims, and manage capital markets & reinsurance for programs. Partners do not need to find capital or take on insurance risk.
Our initial partners…
Vertical SaaS companies provide holistic, end-to-end services in one platform. Partnering with Authentic will allow them to add insurance to their growing product suite. Authentic provides a better product (lower rates, better CX) and allows partners to monetize insurance with no integration cost.
Associations share an underlying profile and mission. Authentic can seamlessly create an insurance product tailored towards these homogenous members that is specific to their needs and gives financial upside.
Everybody wins with the Authentic model…
Partners: Monetize insurance (through commission & underwriting profit) and increase retention without dedicating resources.
Policyholders: Hyper tailored coverage, streamlined customer experience, lower prices over time.
Insurance stakeholders: Authentic leverages community as a “gating function.” Community eliminates misclassification and fraud, a massive problem in small business insurance today.
The D2C economics have been challenged in the SMB space while brokers don’t care to service small premium clients. Authentic’s affinity or “direct to group” approach is the solution.
The natural question is “why now?” In short, the evolution of fronting carriers, captive legislation, reinsurance appetite, and “insuretech 1.0” learnings have all created the opportunity for our community based insurance platform.
Our team
We’ve got an incredible team at Authentic (profiles below); reach out to any of us with questions or to learn more…
Cole (CEO): 5 years investing at Aquiline
Zeke (Head of Product): Early product manager at Next. Launched liability and workers comp product lines
Kyle (COO): Founder of Canary, insurance product development firm. 15 year actuary & insurance background
SK (Head of Engineering): Early Engineer at Amazon Braket, cloud platform for quantum computing
Madina (Product): Insurance consultant at Canary. Background in mathematical research
Will (Chief of Staff): Recent graduate from Princeton, background in financial services
Thanks for reading! We’ll have more exciting updates as we move closer to launch soon :)
Our website just launched, visit it here! Follow along on LinkedIn!