Making The Leap: Insurtech To Insurer

As we have previously written, many insurtech companies, and their investors, eventually face the choice of whether to remain an insurance producer (i.e., an insurance agency, brokerage or managing general agent), licensed to sell, negotiate and possibly underwrite insurance, or become a fully licensed insurance company. By becoming a "full-stack" insurance company, the insurtech company can exercise greater control over its business while capturing more of the value chain. In that prior article, we highlighted the significant, though navigable, regulatory issues facing insurtech companies, and their investors, should they decide to make the transition from being a licensed insurance producer to a fully licensed insurance company.