Over 5,000 agents have been appointed with Pathpoint since the company launched in late 2020. Overall gross written premium quadrupled from 2021 to 2022, and monthly active users tripled.
WASHINGTON (PRWEB) February 01, 2023
Pathpoint, the modern wholesaler where insurance agents can get bindable small commercial E&S quotes in just a few minutes, announced today that it has raised $12.5 million in funding from existing investors. Caffeinated Capital led the round to fuel continued expansion after Pathpoint posted record growth in 2022.
“This investment is about deeply investing in Pathpoint’s Go-to-Market function," said Raymond Tonsing, Founder and Managing Partner at Caffeinated Capital. "Data indicates that agents who can try Pathpoint even once love using it, but there’s still untapped opportunity in terms of getting in front of more agents and deepening relationships across the distribution base both in terms of existing partners and new ones. Further investment in GTM will build on growth to date and enable Pathpoint to become not only a category defining growing wholesaler, but a profitable one, within the next few years.”
Over 5,000 agents have been appointed with Pathpoint since the company launched in late 2020. Overall gross written premium quadrupled from 2021 to 2022, and monthly active users tripled. On average, an agent using Pathpoint receives a quote in seven minutes and is able to bind the quote within a day, while traditional wholesale experiences often take days to return quotes.
To further scale distribution, Pathpoint began working with some of the largest networks, aggregators, franchise operations, and digital platforms in the commercial insurance agency space. Pathpoint launched with 16 of the top 40 in 2022 and plans to use new funding to double this number in 2023. In addition to these partnerships, Pathpoint continues to expand supply and iterate on its product with independent agents, who continue to make up 40% of new users, in mind.
"Given the growth over the last 6 months, it became clear to us that we needed to invest more in sales and marketing infrastructure to better support our existing distribution and further expand it," said Alex Bargmann, Pathpoint's CEO. "The investment from Caffeinated Capital unlocks this while setting us up to build a profitable wholesale intermediary with national distribution. There is currently no other solution that gives agents such a fast, simple, and efficient E&S experience. Until now, we’ve been restricted in terms of the sheer number of agents we can get to, which is why we’ll target funding to Sales and Marketing while continuing to innovate on E&S process and broadening our small commercial E&S product and market offering."
Non-admitted coverage is typically procured through the use of wholesale brokers who access the E&S, or Excess and Surplus Lines, marketplace. E&S risks cannot be placed in the admitted markets due to a shortage of capacity or the complexity of the risk. As more and more business is conducted through the E&S market (which is expected to grow 25% from 2021 to 2022), agent access to a fast and transparent way to quote, bind, and service E&S products online becomes even more critical.
Pathpoint is the modern, digital wholesaler where insurance agents can get bindable small commercial E&S quotes in just a few minutes. We combine proprietary technology and first-class service to give retail insurance agents fast access to quotes from multiple, A-rated carriers in the Contractors, Vacants, Lessor’s Risk, Monoline Property, Restaurants, and Cyber verticals. Pathpoint is licensed in all 50 states and a coverholder at Lloyd’s of London. To learn more about Pathpoint, including open career opportunities, visit http://www.pathpoint.com