Layr’s white label branded platform for brokers and agents comes with a few noteworthy twists, according to founder and CEO Phillip Naples (pictured).
“The platform that we offer is really addressing the entire spectrum of the insurance journey for the businessowner and the broker. Most other platforms out there are addressing a single pixel, if you will, of the supply chain or issue,” Naples explained. “We’ve got the whole thing from quote until claims.”
Layr is an Atlanta-based start-up whose platform uses artificial intelligence (AI) and machine learning to help brokerages and agencies efficiently manage their small commercial books of business. It was developed over three years and has a white label component that lets brokers and agencies customize the look of the platform to suit their business identity.
Layr announced on March 22 that it had raised a $10 million Series A funding round from investors including HSCM Ventures, Sandbox industries and Hannover Digital Investments, with participation from The Graham Agency, Broker Tech Ventures and others.
The funding amounts to a validation of the work Layr and its employees have done so far and will gear up for in the months ahead, according to Naples.
“I’m really grateful for the opportunity because now we actually have the runway to prove out what we believe will happen,” Naples said.
Layr launched six years ago and currently employs approximately 50 people. In addition to its new financing, it previously raised a $5 million seed round and, before that, an early cash infusion of about $500,000. The money will be used, in part, to double Layr’s current staffing and expand its market reach with insurance agents and brokers. More technology advances are also planned.
Naples describes the company’s core technology as a white label platform that’s branded to insurance broker and agency partners, something that can digitize their operations overnight. The goal is to enable its customers to sell property/casualty insurance to small businessowners at a scale that is highly profitable for them. Programming isn’t necessary, and agents/broker customers don’t need engineers at the ready.
“It does not require that [customers] write a single line of code or integrate with any APIs, so we literally can spin them up overnight,” Naples said. “It’s zero code for them.”
The platform helps guide businessowners in determining what types of coverage they need and why, and then it can accurately predict which insurer will accept cover at a given price or premium, Naples said. Having this is particularly important for small business customers, he noted.
“The process of advising a small business owner is basically cost prohibitive for an insurance agency or broker because there’s not enough commission dollars in there,” Naples said. “Our technology can fill that void and help guide that customer.”
Also, agency/broker customers get a state-of-the-art digital experience, and agents/brokers can attest that they have digital technology that customers are increasingly looking for.
Layr designed what is intended to be an easy process for brokers and agencies to sign up for the platform and weave it into their business.
The company requires a few basic things from broker/agency partners once they sign up, including basic data from agency management systems, and insurance licenses that verify regulatory approval to do business in given regions or states. Another required element: logos and color schemes to customize the platform individually for clients.
The end result morphs the cloud-based platform for individual clients so it has the look of their corporate identities, with their businessowner customers having no idea in the end that Layr exists.
“And then all the welcome emails go out to each and every one of their clients, [telling them that] that they can go retrieve their accounts and start engaging with their insurance,” Naples said.
With all the basic data and corporate identity elements in hand, the platform can be ready to roll within 30 minutes, though it gives partners/clients a 30-day to 60-day implementation window because pulling data out of AMS systems can be complex. Some clients end up needing the full time as a result, Naples said.
In terms of payment, the company relies on a usage-based system, with Layr charging a “micro percent” each month to the broker based on however much premium is on the platform. Additionally, clients have an option to purchase a premium finance solution at renewal or when they buy new cover. If they want to be more flexible in how they pay, then the insurance carriers offered by Layr will facilitate that through the platform, which gives the company some additional revenue directly from the insurance,” Naples said.
So far, Layr has more than 30 broker partners on the platform, breaking down to roughly 4,500 individual insureds, Naples added.
In the end, Naples said he hopes to build Layr into something that helps small businesses who must have the same insurance as global or national companies but struggle to find the same support.
“My ultimate goal is to build Layr up to the point where we’re enabling all of the distributors of insurance – agents and brokers – to be able to go profitably support these small businessowners,” Naples said.
