In 2021, Philip Krim stepped down as CEO of Casper, marking the beginning of a new chapter in his career. Since then, he has devoted most of his time to investing and incubating companies through Montauk Ventures. One of the latest additions to his portfolio is Ranger, an innovative insurance company aiming to revolutionize the industry by empowering agents rather than replacing them.
A Shift from Consumer-Centric Platforms
Most modern insurance platforms have focused on streamlining the process for end-users. Lemonade and Hippo have made it easy and affordable for customers to onboard new insurance policies, while startups like Goodcover aim to increase transparency by paying dividends on unused premiums. However, none of these companies have prioritized helping agents in the industry with smarter tools.
A New Approach: Elevating Insurance Agents
Ranger takes a different approach. Rather than investing heavily in marketing efforts, the company focuses on providing agents with the necessary tools to respond quickly to customers, generate better leads, and maximize cross-selling opportunities. This strategy is centered around personalizing client services and centering agents in the process.
The Founders’ Vision
Alongside Philip Krim, Ranger was co-founded by Greg Garrison and Gabriel Flateman. With 15 years of experience in the insurance industry at AIG, Garrison realized that insurance agents are often neglected at legacy companies. By providing better tooling and incentive models, agents can take on a more significant role in selling policies rather than relying solely on marketing efforts.
A Gap in the Market
Garrison points out that many families unknowingly underinsure their homes by around $100,000. High-touch agents with the time to devote due to automated administrative tasks can help these end-users feel confident about policy choices. By targeting middle-income to affluent families buying a home, Ranger aims to provide a more personalized and predictive approach to insurance.
The Market Opportunity
According to Garrison and Krim, the $500 billion market is divided into two segments: the ultra-wealthy with extensive support from their agents, and the vast majority who purchase policies without adequate guidance. The strategy with Ranger is to cater to the middle-income families buying a home with a more personalized approach.
A Different Value Proposition
Garrison highlights that the messaging in the market has predominantly been focused on commoditizing insurance products, prioritizing affordability and speed over personalization and service. "We’re coming in with a different value proposition," he emphasizes. "The challenge will be getting our message out there and getting people focused on things other than what the market has been telling them for the last 20 years."
Ranger’s Launch and Growth
Ranger is set to launch in the fall, offering home insurance, auto insurance, and a home warranty policy. The startup will operate in Arizona, Indiana, and Ohio, with a focus on partnering with carriers rather than carrying its own risk.
Funding and Future Plans
The company has secured $5.25 million in seed funding led by Lerer Hippeau Ventures, with participation from Alex Rodriguez, Firstminute Capital, Slow Ventures, Global Founders Capital, Raven1 Ventures, and Montauk Ventures.
Conclusion
Ranger’s approach to insurance is a refreshing departure from the traditional focus on commoditizing products. By prioritizing agents and personalization, the company has the potential to revolutionize the industry. With its innovative strategy and strong funding, Ranger is poised for success in a crowded market.
