Realigning Insurtech Insurance: A Comprehensive Coverage Review for Modern Operations

Some of the funnest work we’ve done over the past few months has been with insurtechs on their own insurance programs.

Say you’re running a
MGA and insurtech, like a Transportation co. we recently reviewed.

Early on, you do what a lot of startups do.

You buy coverage.

You satisfy the immediate broker partner and vendor requirements.

Box checked. You go grow your business.

That decision makes sense at the time.

Then a few years pass.

You have created more than $50M maybe even $100M in premium.

Your vendor contracts are getting more sophisticated.

Your platform is more mature.

Your business has real operating complexity.

You’re no longer the same company that bought the original program.

But your insurance is still structured like you are.

At first pass, the schedule can look fine.

D&O.

Cyber.

Tech E&O.

MGA E&O.

All the expected policies are there.

The issue may not be a missing policy.

It’s where the E&O risk sits.

Your technology E&O is with one carrier.

Your MGA E&O is with another.

This is a real problem for an insurtech MGA because the software and the operation are hard to separate once a claim starts moving.

A customer complaint may involve the platform, the underwriting workflow, the data, the rating logic, the producer process, or the delegated authority.

Sometimes it involves several of those at once.

If two E&O carriers are involved, each may have room to argue that the other policy should respond.

That leaves you in the middle at the exact moment you need the program to be clear.

The business you built deserves an insurance structure that reflects how it actually operates.

The E&O risk should sit with one carrier, on one coordinated form, with language that understands the connection between your technology and your MGA operations.

That is what good coverage review should do.

It should catch the places where your company has evolved faster than your insurance structure.

And for insurtechs, this can show up quickly.

P.S. If you want a quick review, let’s connect. If you’re not quite ready, sign up for our weekly Boardroom Briefs. Every other Wednesday we write about transformation stories just like this for the clients we specialize in: Insurers, MGAs, and Insurtechs.

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