HousingWire spoke with Ross Diedrich, co-founder and CEO of Covered Insurance, about emerging trends in insurtech, how Covered has supported servicers during the COVID-19 period and what the transition out of this environment might look like.
HousingWire: What are some of Covered’s biggest accomplishments since we last spoke in June 2019?
Ross Diedrich: Covered has gained significant market traction since our last conversation. We like to say we’ve moved from “startup” to “scale-up,” and it has been a fun, rewarding ride.
We now have “anchor” partners in real estate, mortgage origination, mortgage servicing and home services. Our partner leads, conversions to policy sales and revenue growth are on target. We’ve won multiple deals in a competitive environment.
Additionally, we secured a strategic investment from Radian Group, Inc., the leading mortgage insurance company, which provides Covered with industry sponsorship.
It’s worth mentioning that as a digital company we’ve successfully navigated the COVID-19 crisis with remote employee work and customer management while continuing to post record growth.
HW: How are digital agencies evolving and positioned to support the mortgage industry in this period of rapid change?
RD: As the COVID-19 pandemic accelerated digital mortgage adoption, Covered was well-positioned to bring home insurance into the eClosing process. Our lending partners are presenting their customers multiple quotes from Covered’s panel of 20+ insurance carriers directly within the workflow of their consumer portal.
The efficiencies are driving shorter cycle times and the seamless consumer experience appears to be increasing customer satisfaction scores and adoption rates. Covered has seen our quote requests producing record volumes, with 306% growth from March to May and 452% from February to May.
HW: How is Covered supporting servicers during this time of record numbers of mortgages in forbearance due to COVID-19?
RD: As the agency forbearance programs unfolded, we recognized the challenges facing servicers to manage surging customer inquiries but also the unique position they hold as a trusted adviser. Our goal was to support our mortgage partners by being a part of the solution for troubled borrowers.
With speed paramount and additional technology integrations not an option, we implemented a process to connect servicing customers to Covered licensed insurance advisers to review insurance policy options that could put money back into the borrower’s pocket.
Within minutes, we present multiple policy options, educate customers and provide a binding policy that saves our servicing customers $473/year on average. This active engagement raises the profile of the servicer and leaves their customer in a more advantageous financial position.
HW: What role do you…