{"id":2572,"date":"2017-05-21T16:35:22","date_gmt":"2017-05-21T13:35:22","guid":{"rendered":"https:\/\/insly.com\/?p=2572\/"},"modified":"2021-10-26T21:19:37","modified_gmt":"2021-10-26T18:19:37","slug":"mga-startup-story-build-successful-insurance-start","status":"publish","type":"post","link":"https:\/\/insly.com\/en\/blog\/mga-startup-story-build-successful-insurance-start\/","title":{"rendered":"MGA Startup Story: How to Build a Successful Insurance Startup?"},"content":{"rendered":"
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What defines a successful MGA entrepreneur? John Holm<\/a>, Executive at MGA Investments at Asta Underwriting Management Ltd, says<\/a> that perhaps the most important factor often cited for the ideal MGA startup entrepreneur is someone who is good at both insurance underwriting and insurance distribution, as well as having a good grasp of the numbers. However, few are really good at all three, although often one person takes on the entire job alone.<\/p>\n

Whilst an Underwriter\u2019s skill makes them ideally placed to assess the profitability of the business they are shown, they are not trained as managers. Brokers, who are also often the main drivers of an MGA startup because of their excellent distribution and selling skills, frequently find that the qualities which make high-achieving brokers are not exactly the same as those of a good CEO.<\/p>\n

So, the challenge is to forge together the required mix of attributes, of those capable of making money in the insurance business with the vital managerial skill of running a successful enterprise.<\/p>\n

Story of an MGA Startup, Tapoly <\/strong><\/p>\n

We asked Janthana Kaenprakhamroy, CEO at Tapoly, to share her MGA startup story. She knows all about hard work and the importance of being tenacious and dedicating herself to her ambitions.<\/p>\n

Although she was born in Thailand and grew up in Sweden, she\u2019s a Londoner at heart. Her values are based on the best principles of both worlds, East and West \u2013 work hard, be responsible for oneself, and respect the society that you live in.<\/p>\n

When she came to London, she had a suitcase and \u00a3300 cash in her pocket, and had to take two jobs to get herself through university. Sixteen years later, she\u2019s created wealth for herself, had a successful career in finance, and is pursuing the dream of becoming an entrepreneur.<\/p>\n

Her MGA startup Tapoly offers on-demand insurance services for the sharing economy. The goal is to make sure that everyone in the sharing economy has access to comprehensive insurance solutions. Below, she will share some lessons she has learnt during the journey of establishing an MGA startup.<\/p>\n

What is it that defines a successful MGA entrepreneur? John Holm<\/a>, Executive at MGA Investments at Asta Underwriting Management Ltd, says<\/a> that perhaps the most important factors often cited for the ideal MGA startup entrepreneur are someone who is good at both insurance underwriting and insurance distribution as well as having a good grasp of the numbers, however few are really good at all three, although often one person does take on the entire job alone.<\/p>\n

Whilst an underwriter\u2019s skill makes them ideally placed to assess the profitability of the business they are shown, they are not trained as managers. Brokers, who are also often the main drivers of a MGA startup because of their excellent distribution and selling skills, often find that the qualities that make high achieving brokers are not exactly the same as those of a good CEO.<\/p>\n

So the challenge is to forge together the required mix of attributes, of those capable of making money in the insurance business with the vital managerial skill of running a successful enterprise.<\/p>\n

Story of an MGA startup Tapoly<\/h2>\n

We asked Janthana Kaenprakhamroy<\/a>, CEO at Tapoly<\/a>, to share her MGA startup story. She knows all about hard work and the importance of being tenacious and dedicating herself to her ambitions.<\/p>\n

Although she was born in Thailand and grew up in Sweden, she\u2019s a Londoner at heart. Her values are based on the best principles of both worlds, East and West \u2013 work hard, be responsible for oneself, and respect the society that you live in.<\/p>\n

When she came to London, she had a suitcase and \u00a3300 cash in her pocket, and had to take two jobs to get herself through university. Sixteen years later, she\u2019s created wealth for herself, had a successful career in finance, and is pursuing the dream of becoming an entrepreneur.<\/p>\n

Her MGA startup Tapoly offers on-demand insurance services for the sharing economy. The goal is to make sure that everyone in the sharing economy has access to comprehensive insurance solutions. Below, she will share some lessons she has learnt during the journey of establishing an MGA startup.<\/p>\n

Based on your experience, what are the main things investors evaluate when deciding whether to invest in an MGA startup?<\/h4>\n

Generally, investors care about the product and team when considering investing in a startup.<\/p>\n

Product<\/strong><\/p>\n

Product-related questions start with: is there a need for such a product? What are the potential customers currently doing to solve their issues? How does the product solve these? What is the route to market? How big are the margins? Is the total addressable market growing? What is the projected market size and growth? Is the IP defensible? Would a market-leading position be defensible?<\/p>\n

Team<\/strong><\/p>\n

Regarding the team, the 4 Cs are in question: is the team complete, committed, compatible, and complementary. Can the team deliver on promises, is there a skill or knowledge gap, and have they successfully worked together before?
\nMost angels and VCs prefer to keep in contact for a while before investing, so they could monitor the growth of KPIs and ensure that the concept has been proven.<\/p>\n

Ideal investors are those who can get involved and add value beyond simply capital. This can be through their network, sector knowledge, or their specific skill sets. They should also have a good reputation and ideally be respected by other investors who may want to join as the project progresses. However, the reality of most startups is that seed-stage businesses can\u2019t be too fussy about whom they get money from.<\/p>\n

When talking to investors, what are the main things an MGA startup must have in place in order to raise capital? <\/strong><\/p>\n

A new MGA startup would need to demonstrate the following:<\/p>\n