Dying is Easy, Living is Harder
GPW growth is easy if you underprice, with predictable results
Douglas Ver Mulm notes “Corgi is bad for all the great tech-forward and Insurtech MGAs/wholesalers/carriers out there”
Alexander Niehenke notes “If momentum investing and stupidity had a bastard child, it would be vibe investing”
Corgi’s job posting for Chief of Staff, Trucking Insurance, says:
“The $40B+ trucking insurance market is still being underwritten by people with paper files and 1990s rating engines. We're going to fix that.”
Well, Progressive has 50% market share in trucking and you can get a binding quote online here. Also check out Cover Whale, Nirvana, even GEICO
Also from the job posting:
“In year one, expect to help build a division from scratch to $1B in premium”
To be fair, if you underprice the product in a highly price sensitive, non-loyal, high churn segment, you can definitely grow fast!
The losses will likely be spectacular, and while RRGs enable high capital leverage, that leverage works against you when the losses are high, wiping out the surplus capital. And with no state backstop, it can easily end in tears.