MFX continues to focus on startups and disruption
If you haven’t noticed, Insurance is cool again. Although, “again” might be a bit gracious. Talking with Insurance professionals it is often asked how you wound up in Insurance like it’s some kind of inside communal joke. The old adage of no one grows up dreaming to be a claims adjuster seems to be an honest one, but that self-deprecating humor may soon turn boastful.
“There is something about playing on the road that is just the best part of college football”
In the entrepreneurial, venture capital, ‘what startup have you invested in lately’ world we are living in today, Insurance deals are skyrocketing. Sure we have a fancier name to call ourselves by, InsurTech, but the numbers don’t lie. According to a Willis Towers Watson and CB Insights report, InsurTech funding came close to $1 Billion in the second quarter of 2017 alone. That is a 150% larger than the same period a year ago and 248% higher from 2017’s first quarter according to the Insurance Journal. Contributing to such an increase is the sheer amount of transactions. Of the 64 transactions in quarter two, up from 38 in Q1, 34 were in property & casualty which was up from 23 P&C deals in Q1.
What’ interesting is who is investing in Insurance startups. It is both well-known VC firms like New Enterprise Associates, Accel and Bessemer as well long time established Insurance carriers themselves. From TechCrunch, the most active players in this category are AXA, MassMutual, American Family, Transamerica, XL Catlin and Munich Re.
This latter group’s forward thinking is especially worth commending. Rather than turtling up, they are embracing the disruption to ensure they do not get left behind. Which reminds me of a sports analogy brought to you by Lincoln Riley, Oklahoma first year head football coach and youngest head coach in the country. Leading up to the game, when asked about the struggle playing in Ohio State against the nation’s #2 Buckeyes in front of their raucous crowd he answered, “There is something about playing on the road that is just the best part of college football. I’ve always just enjoyed it more.” Now, that is a leader and someone who embraces disruption. Oklahoma went on to win 31-16 in an upset.
Embracing startups and disruption is something MFX has focused on and catered to since we went to market 15 years ago. The two fastest growing Commercial Property & Casualty startups of the last 15 years chose MFX to jumpstart and process their business. A third was acquired for $110M. A fourth is rapidly growing. I would love to discuss what has made MFX the go-to service provider for P&C startups and what makes us uniquely positioned to continue.
But for now, here are some bullets:
- Digital- Solutions that are InsurTech ready
- Turn Key- from quote to reinsurance, an all in one platform and service
- Flexible- the right technology for your line of business
- SAAS- infrastructure is taken care of in a secure cloud of your choosing. Ie. Private, Virtual Private, Hybrid or Public.
- Risk Sharing- MFX will share in the risk as Insurers get off the ground
- Pricing- creative and collaborative pricing structures that work with the Insurers operating model
- Global Delivery- Right sourcing is done to ensure optimal value
- Domain Expertise- MFX’s unmatched Property and Casualty business knowledge. I.e. Rent-a Insurance: Chief Digital Officer, Chief Claims Officer, Chief Information Security Officer.
So next time you’re at the bar and you see someone oozing swagger, chances are they’re an E&O transactional liability underwriter.