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This is not really related to your post, but you mentioned MGAs, which reminded me of something - If you are getting into this business and are looking to writ
by SmellTheGlove 9y ago
This is not really related to your post, but you mentioned MGAs, which reminded me of something -
If you are getting into this business and are looking to write in most/all 50 states, one of the more cost-effective ways to acquire the licensing and company structure is to purchase a struggling/defunct carrier or MGA (depending on what your needs are). I didn't say cheap, but it's often cheaper than structuring and licensing yourself from nothing.
- asmithmd1 9y agoA NYC insurance startup is doing the slog of rolling out one state at a time: https://www.lemonade.com/lemonade_goes_nationwide https://www.lemonade.com/lemonade_goes_nationwide
- SmellTheGlove 9y agoLemonade probably should ramp up slowly until they have more experience data to look at (my opinion only of course), so it's probably not too disadvantageous. Plus, if you're going the route of getting licenses via acquisition, you need the money to make that investment. It can be cost effective to go that way, but not cheap, so if you're not trying to blow all of your cash at once and can benefit from a slow roll to 50 states, the traditional route will be fine.