Layr, an insurance tech company, closed a $10 million round of financing led by Cota Capital. The K Fund, HSCM Ventures, Sandbox Industries, and Flyover Capitalalso participated in the round.
The company will use the funds from the investment round “to expand go-to-market operations and bolster Layr’s platform functionality for brokers. Independent insurance brokerages use Layr’s cloud-based tools and services to increase broker profitability and customer satisfaction in small business insurance operations.”
Phillip Naples, founder and CEO of Layr, said:
“One of every four dollars in the GDP goes through the insurance industry, yet it’s glacially slow to change. Many of the tools to distribute and service insurance products are outdated, using the same technology as when I entered the industry 20 years ago. Layr’s changing that for underwriters, brokers, and policyholders. When brokers use Layr for their small business insurance management, their policyholders receive insurance services that are as easy and painless as their online banking. With Layr, broker partners handle more clients with ease and at higher margins, all while gaining valuable business intelligence. It’s time to bring small business insurance into the 21st century.”
Layr’s platform modernizes the complex, manual workflows of small business insurance “for a digital, data-driven future.”
With Layr, brokers can serve up to 6 times more small business clients, “transporting brokerages’ small business units into high-margin territory.”
Layr’s platform also optimizes “the insurance experience for small business owners who are traditionally stretched thin managing their business.”
When a brokerage works with Layr, their small business clients can “access a white-labeled, secure online portal to shop for or renew coverage, file claims, easily generate necessary insurance documentation, and download or pay bills online at their convenience, 24×7.”
According to Census Bureau data, more than 5 million small businesses “were created in 2022, a 40-plus percent increase from pre-pandemic levels.”
Because these businesses must be insured, they represent an alluring opportunity for brokers to grow top-line revenue.
However, small business insurance policies “are also inefficient and expensive to manage due to legacy systems and licensed staff requirements.”
Layr claims that it “solves the problem of small business insurance at scale through combining industry know-how with technology that modernizes the policyholder experience, increasing efficiency and returning profits to brokers.”