Submission to ACORD Innovation Challenge 2018

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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.

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We designed for serving the market, not capturing it

One-click to shop for home insurance

Comparity simplifies home insurance for LendingQB lenders and their clients.

Comparity is LendingQB’s official partner for home insurance. We’re integrated with LendingQB’s loan origination software to make it easy for lenders to help their clients buy home insurance and keep track of necessary insurance documentation for their closings.

Send email to integrations@lendingqb.com to request the Comparity home insurance integration.

Announcing: Industry-First Integration Between Hazard Insurance and Loan Origination Software

FOR IMMEDIATE RELEASE

Contacts
Kevin Curry Angelo Jones
757-333-0712 678-781-7209
kevin.curry@comparityins.com angelo@williammills.com

Comparity, LendingQB Partner to Provide Industry-First Integration Between Hazard Insurance and Loan Origination Software

Virginia Beach, Va., Feb. 15, 2017 – Comparity, LLC, an insurance technology company whose mission is to simplify insurance shopping, has partnered with Costa Mesa, Calif.-based LendingQB to integrate its home insurance platform directly into LendingQB’s loan origination and loan processing software.

The industry-first integration imports mortgage loan application data directly into Comparity’s home insurance application. Home insurance applications require many of the same inputs as mortgage applications, and home insurance is required in order to close on typical home loans. The integration makes processing home insurance during the mortgage closing process more simple, transparent, and streamlined for both lenders and homebuyers.

“Everything in the mortgage industry is driving toward digital. It seems obvious for hazard insurance to be integrated but business and regulatory constraints have been obstacles,” said Scott Hunter, Managing Partner and Chief Executive Officer at Comparity. “We created a technical solution that enables homebuyers to shop privately with the most carriers using their mortgage application data. This integration also helps lenders track their clients’ hazard insurance requirement, validate estimates, and download evidence of insurance,” he added.

“To be competitive in today’s market, lenders need to remove as much waste from their workflow as possible,” said Tim Nguyen, President of LendingQB. “The partnership with Comparity eliminates hours of wasted time finalizing hazard insurance applications that can be leveraged through the existing data in the LOS.”

LendingQB’s LOS is completely web-based and designed to provide lenders a flexible, innovative workflow. Its open-architecture application protocol interface (API) enables lenders to select the tools, like Comparity, that best help their efficiency. Comparity’s technology and distribution platform is designed to fit specifically with the lender’s workflow and bridges the gap between a digital mortgage and hazard insurance.

About Comparity

Comparity is an insurance technology company whose mission is to simplify insurance shopping so everyone wins. Comparity connects buyers and sellers of personal insurance through an online, side-by-side comparison of multiple policy quotes from multiple companies using a single insurance application. Comparity reaches more insurance carriers than any other company, including carriers no other company can compare. Learn more at https://www.comparityins.com

About LendingQB

LendingQB is a provider of Lean Lending solutions. The Lean Lending solution consists of a 100 percent web browser-based, end-to-end loan residential mortgage origination system, best of breed integrations with key industry partners and ‘adoptimization’ services that result in faster cycle times and lower costs per loan. For more information, please call 888.285.3912 or visit www.lendingqb.com.

Better Together

Today we reached a milestone for our company and at the same time we contributed something useful to the world of home buying and home insurance. Today we launched our first API integration with a mortgage technology company and it was not only our first integration, it was the first integration of its kind between the home mortgage and home insurance industries.  It will help lenders, borrowers, and insurance carriers alike by streamlining home insurance into the increasingly digital mortgage business. It’s something that lenders have wanted for a long time but was never possible until we came along.

Technically, API integration is quite simple, almost trivial. For technology companies, API integration is expected. You’re not a tech company if you don’t API. But in the mortgage and insurance industries, API integrations are rare. Mortgage and insurance companies are not only decades behind with their technology but layers of regulations, consumer protections, and market forces made any business case for integration between mortgage and home insurance seem untenable.

That’s where we came in. The combination of our technology and business model makes it not only possible to integrate home mortgage with home insurance but profitable for us to do so, and in a way that adds value for everyone in the ecosystem. Lenders get a way to help their clients with hazard insurance that is compliant with lending rules and streamlines their closings. Homebuyers get a way to privately shop and compare the market without any effort. Insurance carriers and their agents get access to desirable customers without any up-front lead fees.

Today we reached a milestone for our company and did something useful for the 5M people who buy homes each year, their lenders, and their insurers. We won’t reach them all right away but we took the first step. That feels good.