Maffeo says Boost is looking to launch three de novo programs in next 12 months

By James Thaler

June 20 - (The Insurer) - Boost founder and CEO Alex Maffeo has said the MGA infrastructure platform plans to expand beyond its seven active offerings by launching three de novo programs in the next 12 months.

Speaking to The Insurer TV at this month’s Insurtech Insights USA conference, Maffeo detailed the role Boost plays in the MGA ecosystem and its plans for growth. “It doesn't matter if you have a really proven business or a lot of experience in the industry, and you come with an incredible track record, getting a brand-new program off the ground is really difficult,” he explained.

“Especially for fronting carriers and reinsurers to do direct … we get a lot of referrals from fronts, and we get a lot of referrals from our reinsurance partners as well," he added.

Maffeo said that Boost has no current need to raise additional funding after completing a recapitalisation last July with Connecticut-based private equity firm BHMS Investments, supported by strategic investors Markel, RenaissanceRe and Canopius.

“We have really good backing that really understands the industry and has been super valuable strategically to help us scale the company. So I think we're good for the time being, but you never know,” he said.

Maffeo said that the insurtech’s biggest competition comes from MGAs building infrastructure themselves, adding that the programs currently on Boost’s platform were “really flexible”.

“You can offer a (business owner's policy) product, for example, until you're blue in the face. But in order to create specialty coverage, you need a flexible carrier that has flexibility on the filing and the product that you're in the market offering,” Maffeo added.

Boost acts as an MGA, providing infrastructure to help programs either move carriers or get off the ground, offering services in the areas of compliance, capital and technology through what it describes as a “turnkey” solution.

The insurtech has been around since 2018 and aims to help new or existing programs to build both underwriting operations and technology systems. Maffeo said this would previously involve doubling overhead and go-to-market costs.

“We wanted to put together some of the core components that they would need to build and launch their companies far more cost-effectively than building everything themselves,” he continued, saying that Boost built a policy administrative system from scratch.

“We are licensed across all 50 jurisdictions, and we have five different active fronting carrier appointments. And then sitting behind those fronting carriers are a panel of a little over a dozen global reinsurers that provide dedicated risk capacity behind all Boost programs,” Maffeo said.

“So when you are an MGA, whether you are an insurtech in your garage or a large MGA or wholesaler at scale, you can come to Boost and really find everything that you need to build a specialty insurance program,” he said.