Authentic raises $5m for captive in a box platform
Authentic, a turnkey insurance platform that allows vertical SaaS companies, franchises, and other groups to reap the benefits of captive insurance, announced the close of a $5.5 million seed round that will allow it to launch a captive in a box insurance platform.
The round was led by Slow Ventures with participation from Altai Ventures, MGV, Upper90, Clocktower, Commerce Ventures, Mischief Ventures, Core Innovation Capital, and prominent insurance executives.
Authentic said that according to the National Association of Insurance Commissioners, 90% of Fortune 500 Companies utilise captive insurance, which is a form of "self-insurance." With captive insurance, organisations create their own insurance companies instead of buying insurance from a broker or insurance carrier.
Authentic added that its captive in a box platform now makes it possible for any Vertical SaaS company, franchise, association, etc., to launch captive insurance programs for their members in a matter of weeks. Authentic's turnkey platform handles all of the logistics of setting up a captive insurance company, including legal - setting up a domicile, administration, etc; underwriting - filing rates with regulators, pricing, actuarial analysis, etc; reinsurance & capital - reinsuring, capitalising captives, etc and claims management, customer servicing, and more.
“Captive insurance provides many benefits to organizations and their members, but until now, setting one up was a very long and expensive process,” explained Cole Riccardi, chief executive and founder, Authentic. “Through Authentic's platform, anyone can create their own captive insurance program and realise the benefits within days.”
Authentic has launched with initial customers and already has a waitlist of customers launching throughout Q4 2023. Currently, Authentic is offering business owner's policy coverage and is targeting businesses in the food & beverage, salon & spa, retail, fitness, and professional services.