How Socotra enabled CoverTree to unlock a niche market, achieve 90% straight through processing and 30% lower total cost of ownership while supporting significant growth
Founded in 2020 in Detroit, Michigan, Covertree is a venture capital-backed InsurTech MGA focused solely on the manufactured housing market.
CoverTree found the right technology to bring their vision to market in Socotra, one that enabled them to leverage Artificial Intelligence (AI) and data-based pricing to create a straight-through process for underwriting and claims in their online distribution channel and improve the customer experience by making applications and claims fast and easy, while also reducing costs that they could pass along to customers in the form of better prices.
In six months, CoverTree entered the market, offering manufactured home customers the ability to purchase a policy online in less than three minutes and save up to 40% in premiums, in five states.
- CoverTree managed a quick 6-month implementation with Socotra, allowing for market entry in less than one year.
- CoverTree set up 90% of applications for straight-through processing – enabling policy purchase in less than three minutes – through Socotra.
- Socotra’s pay-as-you-go pricing plan lowered TCO and saved CoverTree $750k to $1M in savings for maintenance and upgrades costs (every four years).
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