Branch Insurance shot up to a $1 billion valuation by galloping in the opposite direction of other tech unicorns, said co-founder and CEO Steve Lekas.
The digital home and auto insurer since inception has opted for steady growth by setting premiums high enough to cover claims costs, he said. But rates are still lower than many competitors by cutting distribution and marketing expenses – just enough for an underwriting surplus.
“It’s very hard as an insurance business to (both) grow and make money,” Lekas said. “That is not the normal venture way. The venture way is to grow at all costs. Our way was to grow at an adequate cost.”
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Story excerpt provided by Columbus Inno.
Written by Carrie Ghose.
Originally published June 10, 2022.