Decisions you make when founding and/or investing in an
insurtech venture can dictate your regulatory obligations, tax
liability, operational structure and, ultimately, profitability.
Here are five seemingly simple questions to ask when launching an
insurtech venture:
1. What will your venture be?
Determining how you want to operate and what insurtech product
you'll offer is one of your first key strategic decisions. Are
you a producer? A captive? A managing general agent? A consultant?
Your selection will dictate how you operate and the specific
responsibilities and legal obligations applicable to you and your
operations.
2. Where will you operate?
Whether you operate domestically or internationally, each state
or country will require compliance with a distinct set of
regulations and procurement of specific licenses. You need to be
aware of the regulatory tripwires, how best to avoid them, and the
fines and sanctions that often come with regulatory violations.
