Columbus, Ohio-headquartered personal lines insurance startup Branch has launched the Branch Insurance Exchange that it says will reduce the cost for its members.
Branch formerly operated as a managing general agency,
Branch bundles homes and auto insurance, requiring only a name and address to get a bindable price in seconds.
Branch says its reciprocal exchange is the first launched in Ohio in 75 years. The Branch Insurance Exchange is owned by its members and managed by Branch for a fixed 5% fee. Clients agree to become a member of the Exchange when they purchase a policy with Branch.
Branch plans to return unused funds to members through vesting dividends.
Branch was founded in 2018 by former Allstate and Esurance executive Steve Lekas and tech entrepreneur Joe Emison. Branch Insurance has launched in five states (Arizona, Illinois, Missouri, Ohio and Texas) and is underwritten by General Security National Insurance Co.
A few weeks ago, Branch nailed down $24 million in new financing.
Lekas described the reciprocal approach as “an esoteric model,” though he noted there are some well known reciprocal exchanges including PURE, Farmers and Erie Insurance.
Source: Branch
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