Authentic Insurance Raises $11M in Series A Round Led by FirstMark Capital

The company provides the infrastructure for franchisors, software companies or associations to roll out their own ‘captive’ insurance offering.

(Image source: Authentic Insurance web page.) 

Authentic Insurance (New York), a company provides the infrastructure for franchisors, software companies or associations to roll out their own “captive” insurance offering, has raised an $11M Series A round led by FirstMark Capital (New York) with participation from Slow Ventures, Altai Ventures, MGV, Upper90, and Commerce Ventures.

Adam Nelson, Partner, FirstMark Capital.

Providing the infrastructure for franchisors, software companies or associations to roll out their own insurance offering to their existing customers, Authentic describes the way it operates as being like a “co-op” or “collective” model, enabling member-owned programs allow for hyper-customized coverage and potential dividends when there are fewer claims, which can lead to cost savings as well. Authentic works with New York-based specialty program insurer Everspan Insurance Company as its fronting carrier.

“The way commercial insurance is bought and sold has largely remained unchanged since it first came into existence over 50 years ago,” comments Adam Nelson, Partner, FirstMark Capital. “Authentic is the first company to virtually eliminate the need for traditional carriers. With a platform approach that enables partners to roll out their own new insurance offerings, it’s been incredible to watch as millions of businesses instantly gain access to a better insurance model on day one.”

Authentic enables the establishment of a captive within hours, and customizable for small business customers’ needs, according to Cole Riccardi, CEO, Authentic. It creates a net new product that Authentic’s partners can sell to their existing customers, for example, a technology company that provides software to 60,000 small businesses. The company can then sell commercial insurance to their customers and get dividends and cost savings. Among Authentic’s existing customers are Mindbody, Restaurant365, theCut, and PushPress.

Cole Riccardi, CEO, Authentic Insurance.

Better Options for SMBs at a Better Rate

“It’s the first win-win insurance model for both small businesses, and the companies serving them today,” comments Riccardi. “Small businesses get better options at a better rate, while our partners can easily add new product lines and revenue streams with Authentic’s infrastructure.”

Riccardi explains that Authentic handles all the logistics of setting up a captive insurance offering: underwriting, filing rates with regulators, pricing, actuarial analysis, reinsuring, capitalizing captives, setting up a domicile, administration, claims management, and customer servicing. “We’ve built our platform to adapt and tailor insurance coverage in real time to increase addressability and competitive pricing,” he says.

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at AnthODonnell@IIReporter.com or (503) 936-2803.

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