(Image source: Layr homepage.)
Layr (Atlanta), an InsurTech serving independent commercial insurance brokerages, has closed a $10 million round of financing led by Cota Capital (San Francisco). The K Fund, HSCM Ventures, Sandbox Industries, and Flyover Capital also participated in the round. The company says it will use the funds to expand go-to-market operations and bolster Layr’s platform functionality for brokers. Independent insurance brokerages use Layr’s cloud-based tools and services to increase broker profitability and customer satisfaction in small business insurance operations.
“One of every four dollars in the GDP goes through the insurance industry, yet it’s glacially slow to change. Many of the tools to distribute and service insurance products are outdated, using the same technology as when I entered the industry 20 years ago. Layr’s changing that for underwriters, brokers, and policyholders,” comments Phillip Naples, founder and CEO, Layr. “When brokers use Layr for their small business insurance management, their policyholders receive insurance services that are as easy and painless as their online banking. With Layr, broker partners handle more clients with ease and at higher margins, all while gaining valuable business intelligence. It’s time to bring small business insurance into the 21st century.”
Layr describes its platform as modernizing the complex, manual workflows of small business insurance for a digital, data-driven future. The company says that brokers using its platform can serve up to 6 times more small business clients, transporting brokerages’ small business units into high-margin territory. Layr adds that its platform also optimizes the insurance experience for small business owners who are traditionally stretched thin managing their business. When a brokerage works with Layr, their small business clients can access a white-labeled, secure online portal to shop for or renew coverage, file claims, easily generate necessary insurance documentation, and download or pay bills online at their convenience, 24×7, the vendor notes.
The Layr statement notes that, according to Census Bureau data, more than 5 million small businesses were created in 2022, a 40-plus percent increase from pre-pandemic levels. Because these businesses must be insured, they represent an attractive opportunity for brokers to grow top-line revenue. However, small business insurance policies are also inefficient and expensive to manage due to legacy systems and licensed staff requirements. Layr says it solves the problem of small business insurance at scale through combining industry know-how with technology that modernizes the policyholder experience, increasing efficiency and returning profits to brokers.
“Layr’s platform is built by veterans of the commercial insurance industry who understand the challenge that brokerages face to service small business customers,” comments Stewart Pond, principal, Cota Capital. “The small business insurance market is large and growing but inherently costly to manage. The challenge is compounded further by an undersupply of licensed account managers, acting as a bottleneck to longer-term growth of the brokerage. Layr aligns their incentives with the broker, by leveraging its platform to service customers at higher profit margins while ensuring a best-in-class experience. Insurance carriers recognize the value that brokers provide as a trusted advisor in their community as customers seek coverage. Layr is building the infrastructure to automate manual, time-intensive tasks and help brokers focus on areas where they can provide the highest value for customers. We believe that Layr has the team, the technology, and the vision to become a leader in small commercial insurance and a de facto solution for brokers as they scale their business.”
Streamlining Policyholder Ops while Providing Excellent CX
The Layr platform digitizes all paper-based data and eliminates 100 percent of manual invoices and checks, the vendor statement says. With Layr, brokers can offer their policyholders a friendly online hub with 24×7 account management, access to their insurance documents, a consolidated view of all their policies, online quotes and claims, and electronic payments. The online hub integrates with carriers, automates workflow, and provides brokers with a powerful analytics dashboard that surfaces important insights and trends, Layr says.
“Layr has turned our small business book from a cost center to a profit center,” comments Sean O’Hare, VP, Holmes Murphy. “The reality is that small commercial clients are active and having an on-demand resource for them to manage their insurance program is beneficial for them and us. With Layr, we get happier policy holders and a happier sales and service staff. It’s a win-win!”