Why is establishing a licensed insurance carrier so capital intensive for a startup?
Replied byEmily Yuan
Co-founder & COO at Corgi
Niche: Finance
Revenue: Approx. $3.3 Million/month
Location: San Francisco, California, United States
Started: 2024
You need to collateralize the carrier before you can begin writing policies. Regulators require you to place enough money in the carriers to prove that you can cover any potential insurance claims. We had to raise substantial capital before securing regulatory approval or generating revenue.
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