Workers’ Compensation Insurtech Pie Insurance Starts Selling in 4 States

March 6, 2018

  • March 6, 2018 at 1:48 pm
    NY Broker says:
    Like or Dislike:
    Thumb up 3
    Thumb down 0

    I may have to keep an eye on this one. I worked with the Shovals when they started The Guard and the carrier was rated NR-3. They have a unique business model, sticking to one type of insurance and expanding slowly. I wish them well in this new venture.

    • March 16, 2018 at 4:13 pm
      County Line says:
      Like or Dislike:
      Thumb up 0
      Thumb down 0

      Well wishes may be in order, assuming you don’t serve the WC market segment this online program is targeting. If you serve the same market they are pursuing, be careful what you wish for.

  • March 6, 2018 at 2:16 pm
    agent2 says:
    Like or Dislike:
    Thumb up 2
    Thumb down 0

    I agree some of this comp insurance is very pricey but what are they going to do, use their own rates?

    • March 6, 2018 at 6:22 pm
      County Line says:
      Like or Dislike:
      Thumb up 8
      Thumb down 1

      As we’ve seen similar fresh faces do in the past, it is almost predictable they will breeze into town with carriers offering below-market pricing just to capture market share. Once the losses roll in the carriers will naturally raise pricing or close & non-renew all policies they wrote. Of course this won’t happen before their unsustainable pricing lures away a lot of business from established carriers. If this newcomer makes the splash they want to make, I expect this to disrupt the rationally-priced market for two or three years. Fasten your seat belts for the turbulence.

  • March 6, 2018 at 6:04 pm
    Lou says:
    Like or Dislike:
    Thumb up 4
    Thumb down 0

    Selling WC online. Tricky, for good results it’s always best to eyes on a business. That’s what good agents do best. Many clients will take advantage when they can. Rates will be low and losses high.

  • March 7, 2018 at 9:44 am
    WC Veteren says:
    Like or Dislike:
    Thumb up 2
    Thumb down 0

    This is not exactly new. Many companies have tried this and many more are doing this. So far, it is easy to book premium, sometimes at super cheap prices and other times at high prices. Established companies such as AIG, Reliance, Safeco, Liberty, QBE, etc., plus others much smaller. None, so far have been successful (of course all the recent ones say they are) because with WC allowing the fox to pick the hens to keep has never been successful. Some day they will, but the big nut they have to crack is to get a machine to actually underwrite. Anything so far has only made it easy to select against and therefore oops.

    • March 13, 2018 at 5:13 pm
      Agent says:
      Like or Dislike:
      Thumb up 2
      Thumb down 0

      WC is not Personal Auto. What if an online applicant misrepresents what their operation is and does for a lower rate? Audit time? This outfit probably doesn’t know what an audit is.

  • March 16, 2018 at 4:09 pm
    County Line says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Agent is spot-on. The anonymity in online coverage invites misclassification and misrepresentation of the risk, which audits will retroactively discover. It’ll be a nice, smooth first year for the program raking in the sales commissions, but expect a spectacular fireworks show when the audit results start posting.



Add a Comment

Your email address will not be published. Required fields are marked *

*