COLUMBUS, Ohio, Aug. 21, 2020 /PRNewswire/ -- Columbus-headquartered insurance startup, Branch, formerly operating as an MGA, has just launched the Branch Insurance Exchange in Ohio to further reduce the cost for its members. Branch boasts the quickest way to bundle home and auto insurance, requiring only a name and address to get a bindable price in seconds. Only weeks after its $24M Series A announcement, Branch continues to innovate its business model and create new ways for clients to save.
Branch is powered by community, and as the first reciprocal exchange launched in Ohio in 75 years, it further disintermediates the insurance value chain, creating even less expensive insurance for its members. The Branch Insurance Exchange is owned by its members and professionally managed by Branch for a low, fixed 5% fee. Clients agree to become a member of the Exchange when they purchase a policy with Branch. As the facilitator of the community's resources, Branch puts members' premiums aside to pay for the community's claims and expenses.
While other insurance companies are designed to answer primarily to shareholders, this reciprocal exchange was designed to answer only to its members, which keeps costs low and creates delightful client experiences from purchase to claim. Furthering its mission of making insurance less expensive, Branch will return unused funds to members through vesting dividends. These funds can then be withdrawn, accentuating that members are owners of the Branch Insurance Exchange and rewarded for loyalty as users.
"Branch is a community of people who pool their small resources so that an unfortunate member who suffers a loss isn't at risk of falling off their life's financial trajectory. Branch is privileged to be the facilitator of that community," shared Cofounder and CEO Steve Lekas. Branch plans to launch the Branch Insurance Exchange in the four remaining states where it operates and throughout the country as it continues its nationwide expansion.
About Branch Branch was founded in 2018 by insurance veteran Steve Lekas and tech entrepreneur Joe Emison. Branch taps into the power of community to make insurance accessible and affordable for everyone, utilizing innovative technology makes it easier than ever to save money by bundling Home and Auto Insurance in seconds. Branch Insurance has launched in five states (AZ, IL, MO, OH and TX) and is underwritten by General Security National Insurance Company (GSNIC) an AM Best A+ Financial Rated insurance company and is headquartered in Columbus, Ohio.