Insurance start-up, Branch Insurance, formerly operating as an MGA, has launched the Branch Insurance Exchange in Ohio to further reduce the cost for its members.
According to Branch, the startup boasts the quickest way to bundle home and auto insurance, requiring only a name and address to get a price quote in seconds.
Only weeks after its $24 million Series A announcement, Branch continues to innovate its business model and create new ways for clients to save.
The Branch Insurance Exchange is owned by its members and professionally managed by Branch for a fixed 5% fee. Clients agree to become a member of the Exchange when they purchase a policy with Branch.
As the facilitator of the community’s resources, Branch puts members’ premiums aside to pay for the community’s claims and expenses.
While other insurers are designed to answer primarily to shareholders, this reciprocal exchange was designed to answer only to its members, which keeps costs low and creates “delightful client experiences from purchase to claim.”
Furthering its mission of making insurance cheaper, Branch will return unused funds to members through vesting dividends. These funds can then be withdrawn, accentuating that members are owners of the Branch Insurance Exchange and rewarded for loyalty as users.
Co-founder and Chief Executive Officer (CEO), Steve Lekas, commented: “Branch is a community of people who pool their small resources so that an unfortunate member who suffers a loss isn’t at risk of falling off their life’s financial trajectory. Branch is privileged to be the facilitator of that community.”
Branch plans to launch the Branch Insurance Exchange in the four remaining states where it operates and throughout the country as it continues its nationwide expansion.
