How One80 Intermediaries succeeds by diversifying and innovating

How One80 Intermediaries succeeds by diversifying and innovating | Insurance Business America

Insurance News

How One80 Intermediaries succeeds by diversifying and innovating

Christopher Pesce describes the award-winning program administrator’s business strategy

Insurance News

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Insurance Business

One80 Intermediaries, founded in 2020, is a young company in the program administrators’ space. Nevertheless, it now operates more than 105 programs and has accumulated a little over $1.3 billion in premiums.

Among its recent achievements, One80 Intermediaries was recognized as one of Insurance Business America’s 5-Star Program Administrators and Carriers in 2023.

In this interview with Insurance Business, One80 Intermediaries’ national programs practice leader, Christopher Pesce, said a diverse product offering is one of the company’s strengths – it also brings forward diversity in its people, leadership, and business portfolio. Instead of simply generating revenue, the company is building “hyper niche businesses” in several areas.

“We have a great team of entrepreneurs that have come with these entities that we’ve acquired along the way,” he said. “But in terms of the portfolio itself, that diversity really helps us have consistent revenue streams […] that run countercyclical to each other. We’re not subject to the highs and lows of market swings.”

Regarding the program landscape in 2023, Pesce said One80 Intermediaries had seen growth and “interesting dynamics in the marketplace.” In CAT property insurance, the market presents opportunities for MGAs that have the capacity.

Pesce also observed an “entrepreneurial kind of innovation coming out in these MGAs [and] a lot more creativity in terms of product and technology.” Although he thinks insurtech is “a little overplayed”, he acknowledged the inventiveness of companies in this field.

In fact, his own company has partnered with insurtech firm VQuip to launch a pioneering rental insurance program for boaters – an entirely new product aimed at mitigating risks associated with boat rentals during holidays, for example. Specifically designed for the marine environment, the product is accessible through an online booking platform and has been “hugely successful,” said Pesce.

Looking ahead, One80 Intermediaries plans to sustain its organic growth. “We’re fortunate to have been experiencing double-digit revenue growth for the last several years [organically] without including M&As. So, we’re quite pleased with our programs,” he explained. “In terms of the future with M&A, we’re open for business, we’re certainly going to continue to be acquisitive. We’re going to be selective as we always have been, but looking at really quality acquisitions, organizations that have a long tenure and track record in the program space.”

Pesce also said he’s looking at how artificial intelligence can “frame” businesses and bring potentially significant rewards to early adaptors.