Automatic Distribution and Digital Mortgage Integration for Home Insurance
Our company operates a system for buying and selling home insurance that is: automated, complies with RESPA regulations, tightly integrates with digital home mortgage processing, and accommodates new and existing business-to-business (mortgage-to-insurance) networks. We believe our system represents more than an innovation for any one company. It is an innovation for a large sector of our economy in the United States. If digital insurance is the “final mile” of digital mortgage then distribution is the final mile of digital insurance. The key is recognizing that distribution is a business model, not a technology. As we will explain, existing B2B networks require that distribution technology support seemingly arbitrary, many-to-many connections among mortgage companies and insurance companies of all shapes and sizes. Thanks to mortgage and insurance industry data standards, our technology and our company are built for that purpose.
Our approach has additional advantages such as synchronized notifications of insurance status during the loan closing process, automatic uploads of insurance documents into loan origination systems (digital closing packages), and comparative market analysis for everyone involved in the process: buyers, lenders, and insurers. Our approach also serves the consumer regulatory environment by giving buyers the opportunity easily consider multiple options at once through a single, streamlined process. Ultimately, the unique advantage of our flexible distribution methodology over similar models is that it is inclusive of new and existing B2B networks while remaining compliant with RESPA regulations pertaining to business referrals.
Home Buyers like our system because they can shop the market in one place using their mortgage application and transact home insurance as a seamless part of the mortgage closing process.
Insurance Carriers like our system because they understand that automation is the most efficient way to match valid insurance applications with risk algorithms. (More like a matchmaking site, less like pachinko machine.)
Insurance Agents like our system because it allows them to focus more on serving their customers. Little or no time spent collecting data translates to more time explaining differences in policies and helping the customer reach a smart decision.
Loan Officers and Loan Processors, especially, like our system because it truly closes the digital home insurance gap in the end-to-end digital mortgage. No one has to spend time on the phone or emailing to get evidence of insurance when everyone is receiving updates and evidence of insurance is automatically added to the digital closing package.
Integration + Distribution is Key
Today there are a small number of innovative companies specializing in digital home insurance integration with mortgage. We are different and we think that difference is important.
We all recognize that the expectation for end-to-end digital mortgage is high and it can’t happen without digital insurance. So it makes obvious sense that we should enable digital connections between mortgage companies and insurance companies. Stopping there is stopping well short of closing the digital gap. To truly connect digital mortgage to digital insurance requires solving for digital integration and digital distribution.
Any approach based on many-to-one or many-to-few B2B connections fails to accommodate the varied multitude of mortgage-to-insurance networks that exist today and that will continue to exist well into the future. These networks will continue to exists for reasons having nothing to do with technology. Too many lenders won’t use an insurtech if it limits their access to the insurance agencies and agents they know. Companies that ignore this important factor can only succeed through market capture, rather than by serving the market. Instead, through automation, we distribute valid insurance applications to any number of agencies and carriers according to the local B2B environment and everyone wins.
Today, customer access is artificially constrained by lack both a of technology and by conventional business practices in the mortgage and home insurance industries. By solving only for integration, there is a tendency to encode those constraints and disincentivize consumers from shopping their options. By solving also for distribution, we create an environment that works for everyone today and remains flexible for the future.
COMPARITY is the total solution
Our system can connect any mortgage lender to any insurance agency or carrier . That means quick and instant quoting plus closing process synchronization for every loan without having to choose only one or a few providers insurance providers.
Our system uses industry standard APIs to perform an automated blind auction. Insurance carriers and/or their agents receive a standard application and respond with a quote without knowing any other companies or quotes. We start by sending standard borrower attributes to the most number of carriers and agencies at once. Carriers and agencies (via comparative raters) return quotes, which are presented in a side-by-side, “apples-to-apples” comparison of available options. Our technology integrates with loan origination systems, loan point of sales systems, insurance agency management systems, and insurance carrier APIs using industry data standards.