QuoteWell, a tech-enabled commercial insurance wholesale brokerage that is at the forefront of innovating the distribution side of insurance, announced the launch of its brokerage operations to serve independent retail agents. QuoteWell helps agents who are often overlooked and given poor customer service due to low premiums associated with their accounts and provides best-in-class in-house brokers to efficiently find and place the risk.
In the lead-up to public launch, QuoteWell, founded in 2021, has secured over $15 million in Series A funding led by New Enterprise Associates, Inc. (NEA). Goldcrest and Floating Point also participated in the round. The new capital will be used towards expanding the company’s brokerage team and enhancing the infrastructure that underpins automation and operational efficiencies.
“We see a huge opportunity to better serve a segment of the insurance business that is often underserved by incumbents and developed what we call a hybrid insurtech that aims to provide the best service and results for our customers,” said Joey Bouchard, CEO and Founder, QuoteWell. “As a part ‘software startup focused on the insurance sector’ and part ‘wholesale broker,’ we combine industry best practices with a forward-looking, innovative lens to deliver the most impact.”
According to AM Best, the U.S. market alone is set to process over $100B in surplus line premiums in 2023, the segment of insurance that wholesale brokers specialize. Over the past decade, there has been heavy consolidation in the space, and while wholesalers serve various sizes of agents, from mom-and-pop shops to publicly traded companies, many are instructed to focus on accounts that bring in $25,000 in premiums or more. Additionally, insurance carriers often see risk in having their distribution heavily concentrated across a small number of wholesale brokers.
QuoteWell leverages a semi-automated approach to servicing its customers by combining human capital and technology. To date, the company has hired 12 licensed brokers to support submission flow and uses AI-backed models to assist in coverage recommendations from its panel of over 45 carrier partners. As a result, QuoteWell’s brokers can recommend coverage quickly and respond to agents in less than two hours.
“We are excited to partner with QuoteWell as they lead progressive change in a growing market of the insurance industry,” said Rick Yang, Partner and Head of Technology, NEA. “We believe Joey and the QuoteWell team have proven the value of and opportunity in marrying human relationships with automated systems, data and software for best-in-class outcomes. Innovation is critical and QuoteWell is driving efficiency and advancing processes and results for an important corner of an essential industry.”
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