Comment by reticulates
12 hours ago
Risklytics are taking the boring, sensible approach of being a broker, modernizing the application process to broaden the type of clients that can be underwritten.
Corgi are taking the batshit insane approach of insuring clients directly through an esoteric insurance structure that dodges regulation.
Choosing Corgi over a typical broker is playing with fire.
https://reticulating.substack.com/p/ycombinators-corgi-insur...
I'm finding Corgi so far to be really difficult to understand. The sales reps (agents?) you work with don't seem to understand common insurance industry terms, like me asking "is that actual cash value or replacement cost?" when e.g. stating a value for replacing our computers.
I also have open questions on what paying out a claim is actually like, or what it will be like if they have to mount a defence if I were to actually get sued. Since no Corgi customers have been sued yet (as far as I can tell), the answer is "We have no idea".
I'm not trying to be anti-Corgi, but I'm having a hard time understanding how exactly their business model is going to work long term.
Yep, being insured by Corgi is a huge risk. The reason why Corgi is especially terrible is that the inexperienced “growth” “interns” aren’t just selling low quality insurance they don’t understand that isn’t fit for purpose, that’s bad but whatever, the problem is that every new client adds more risk to pre-existing clients! Every Corgi client is, unknowingly, taking on more and more risk every day. The insurance is, basically, decaying, and entirely reliant on Corgi being able to raise money to bail it out when things implode.
The business model of spending hundreds of millions on marketing insurance with cafes is silly but maybe it’ll work, gotta swing for the fences, but selling insurance that could implode at a moment’s notice is grossly irresponsible. And when it implodes, it’s going to hurt thousands of YC startups.
Risklytics will be much more expensive than Corgi but it’ll be actual reliable insurance. Anyone going with Corgi is out of their damn mind.
My biggest question is how I would open a claim. I can’t find a hotline number to call to open a claim (or to give to someone else who thinks they have a claim against me).