Jason Fromm

CEO @ Bay Road Insurance Partners. Building a retail insurance agency platform through acquisitions and tech enablement

[Jason Fromm @jason_frommm]

@zgordon323 @blueprintsmb22 Doing this now in insurance brokerage. Can confirm integrating operations (processes, systems, roles, comp, etc.) is 100x more difficult

[Curt Cignetti @CCignettiIU]

Correct, not even close.

#GOIU #IUFB

[Jason Fromm @jason_frommm]

@XavierHelgesen Aren’t you missing the key piece to what makes Berkshire, Berkshire…the insurance business which gives them the ability to invest premium float at very low or negative “borrowing” costs. Markel, Fairfax, White Mountains do this as well

[Jason Fromm @jason_frommm]

@BillyJura what did they do?

[Jason Fromm @jason_frommm]

Very late but here are some observations on the personal lines insurance market from Q2 results from carriers, brokers and lead gen providers:
👇👇

[Jason Fromm @jason_frommm]

Interesting times in the space! Any thoughts or feedback would be great!

[Jason Fromm @jason_frommm]

🪃Direct insurers (e.g. Geico, Progressive) are pulling back on performance-based marketing. Channels like paid search and lead gen are easy to flex up/down vs. TV or radio. They also drive a lower quality customer (think single vehicles, lower limits).

[Jason Fromm @jason_frommm]

🧑‍🏭Agent channel drove adoption of Snapshot, Progressive’s usage-based auto insurance. Snapshot saw a 40% increase through its agent channel vs. 10% for direct. This highlights a key benefit of working with an agent -- they're experts and find best coverage / price

[Jason Fromm @jason_frommm]

⛈️CAT losses are happening everywhere. Progressive reported CAT events in 44 states so far this year. Allstate had its highest CAT losses in 12 years. I’m no underwriting expert but relying on historical data to price risk isn’t going to cut it anymore.

[Jason Fromm @jason_frommm]

📈Carriers are continuing to push through rate increases, which will go into 2024. Allstate and Progressive increased rates by an average of 10% in 25+ states this year. They'll continue do so through year end.

[Jason Fromm @jason_frommm]

🚗Loss severity for auto policies continues to drag down underwriting performance. Allstate and Progressive both saw a 10%+ increase in loss costs from longer vehicle repair times and parts/labor costs.

[Jason Fromm @jason_frommm]

@bradleyflowers who are you going with now?

[Jason Fromm @jason_frommm]

@bradleyflowers how are you structuring so they keep 100% equity in their agency?

[Jason Fromm @jason_frommm]

I'm in NYC on Friday 8/18. Anyone around to catch up? DM me.

[Jason Fromm @jason_frommm]

@Michael__Ga Appreciate it...I'm not seeing PE on the sidelines, sure some of the highly levered players are slowing down but there are 20+ platforms looking for acquisitions (at least for retail agencies)

[Jason Fromm @jason_frommm]

I spent 7+ years at two venture capital backed insurtech / fintech companies leading P&C agencies. Acquiring an existing insurance services business is the right path forward for me.

Here are the four key insights that led me here:

[Jason Fromm @jason_frommm]

My time at VC-backed companies was a wild ride and I’m excited to take those learnings with me. Always happy to chat about this. Any feedback is appreciated!

[Jason Fromm @jason_frommm]

🧑‍🏭The hiring problem is solvable. Our industry has done a poor job creating environments where team members want to build a career. A culture of transparent comms, fair & easy to understand compensation, regular feedback and opportunities for career growth can be a superpower.