It's been an exciting year assisting a number of insurtech startups with the development of their business plans and helping them clearly identify their target markets. While many of the insurtech firms are challenging the traditional insurance distribution models through new and existing technologies, some have been surprised to learn that they were effectively a Managing General Agent (MGA). If your insurtech firm is delivering any services such as underwriting, pricing, issuing policies and/or settling claims, you are a MGA and require regulatory approval. If a knowledge of regulatory requirements or issues is not included in your insurtech plan, the plan is incomplete and execution is problematic.
If your insurtech business plan is challenging traditional insurance distribution models through new and existing technologies, we strongly recommend that you work with a legal team with insurance regulatory experience during the initial business plan creation to ensure that you have covered all facets of regulatory requirements.