Matic is paving the way for the future of the insurtech industry
Matic, a digital insurance agency with a key tech advantage, has been growing rapidly if quietly over the past few years.
Now with its latest funding round, Matic is in good shape to grab its own headlines alongside the region’s other rising insurtech firms.
Stay up to date with the region’s dynamic business scene. Subscribe to Columbus CEO’s weekly newsletter.
Matic’s secret sauce is that it’s the only insurance marketplace embedded within the interface of customers’ financial institutions.
Founder and CEO Ben Madick dreamed up Matic while building a compliance risk management company serving banks and lenders.
Madick says he kept seeing one- to two-day home loan closing delays because of the slow process of manually gathering information on the homes and buyers for insurance purposes.
“Insurance is all about underwriting good data,” Madick says. “I kept asking why, when we have access to all this great data in our own databases, this should be automatic, so that’s where the name Matic comes from.”
In 2017, Matic launched as an insurance agency embedded within the customer interface of lenders.
If your lender is working with Matic, you can get a custom quote within a couple of minutes rather than having to gather a nest of paperwork. And the company automatically reshops for customers annually, saving them an average of $614 a year, Madick says.
“Most people know that if you have a claim, your price will go up,” he says. “But what they don’t know is if other customers have claims, your price will go up, too.”
Matic now offers Progressive, Allstate, Nationwide, Travelers, and more than 30 other carriers, and is carrier agnostic.
The company is adding partners such as mortgage servicers in 2018 and real estate agents in 2019.
Growth has been rapid. Currently, about 20 percent of all U.S. households mortgaged through a bank or other lender are connected to Matic.
The company has also begun to “upfunnel” in its partnerships with banks, adding the ability for customers with checking or savings accounts to find insurance quotes when banking, not just during a refinance.
Matic also began providing instant quotes through auto loan lenders.
Madick says the company recently signed a top-five global bank as a partner, although details will not be public until first quarter of 2021.
In October, Matic closed on a $24 million Series B round led by IA Capital; investors include Clocktower Technology Ventures and Nationwide Ventures. The company plans to add some 50 to 80 employees to its current 160 employees in 2021.
Cynthia Bent Findlay is a freelance writer
585 S. Front St. Suite 300
Business: Digital insurance agency
Founder and CEO: Ben Madick
Revenue: Would not disclose
Investment to date: $32 million