Swiftly’s small business platform launches with Accelerant E&S BOP policy

The Swiftly marketplace technology platform has launched with an E&S businessowners’ policy on Accelerant paper written by Texas-based MGU Volta Underwriters Services, in a move the insurtech says can unlock the potential of so- called “flow business” without disintermediating brokers, The Insurer can reveal.

This publication reported in January that Swiftly had been set up by a group of seasoned executives led by former Weston Insurance CEO Michael Lyons.

The insurtech is an insurance ecosystem that can offer full MGA-in-a-box services or a series of modular technologies.

Swiftly has operations in Bermuda and the US with a focus on providing end-to-end technologies to drive down insurance costs and improve customer experience with rapid turnaround on the full process from submission to quote to bind.

The marketplace technology platform launched this week with an E&S BOP policy. The carrier for the policy is A- rated Accelerant Specialty Insurance Co via Accelerant Underwriting Managers, partnered with Volta Underwriters Services.

An additional A rated E&S carrier partner is anticipated to be added to the platform by year end.

The Accelerant policy is available in 17 states to start with, with three more states expected to be added by the end of the year. It has property coverage up to $1mn, liability coverage of $1mn occurrence and $2mn aggregate, and $200,000 of time element coverage.

The policy is geared toward small businesses with up to $10mn in annual revenue and up to one claim in the last five years, including start-ups with no operating history.

There are 95 eligible occupancy/NAICS to begin with, including Main Street, professionals, retail, restaurants, clubs/associations and artisans/contractors.

The Swiftly cloud-based insurance marketplace technology platform allows insurance underwriters – including MGAs, MGUs, coverholders and carriers – to on-board producers.

The platform enables complete license verification, OFAC and other KYC background checking in four seconds or less, and allows underwriters to accept, evaluate, price and quote submissions in as little as three minutes.

The marketplace technology platform has fully integrated secure and auditable chain of custody, including e-signature and merchant services, with real-time policy issuance and real-time affirmation.

Swiftly said that over 98 percent of non-habitational commercial insurance accounts are small business accounts. But the insurtech noted that if the average surplus lines broker touches each account for just one hour in a year they’ll likely lose money.

The insurtech said that small business is a good insurance market opportunity but is derisively referred to as “flow business” by brokers because of the low margins.

“The market’s answer thus far has largely been to shovel money into insurtech platforms that disintermediate producers. But not every small business owner is a millennial that prefers to purchase business insurance on their smartphone with zero professional advice or guidance,” said Swiftly co-founder and CEO Lyons.

Under the Swiftly platform brokers can see an average of three bindable quotes, and can switch limit or deductible options and re-price in real-time.

“Swiftly built a marketplace technology platform faster yet more robust than those of almost all direct sellers. But unlike direct seller platforms, brokers are supported by Swiftly, not cut out,” said Dmitry Mnushkin, Swiftly co-founder and CTO.