Nsure.com poised to disrupt $340 billion home and auto insurance market
LAKEWOOD, NJ, Feb. 20, 2020 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE — Reliance Global Group, Inc. (OTCQB: RELI) (“Reliance” or the “Company”), today announced that it has formed a strategic partnership with Nsure, Inc. (“Nsure.com”), America’s first licensed digital insurance agency®, and has consummated a $1 million direct investment representing the first in a series of planned investments, expected to total $20 million, at which time, Reliance Global Group would own 35% of Nsure.com with an option to acquire an additional 5%, bringing the total to 40% of Nsure.com. In connection with the strategic partnership, Nsure.com will provide back-end support for Reliance’s agency business, which is expected to drive significant efficiencies and cost reductions.
Nsure.com is a licensed online insurance agency that utilizes state of the art digital technology and represents over 30 top-rated insurance companies. Nsure.com’s mission is to empower insurance consumers by helping them choose the best carriers and policies. Nsure.com has a recurring revenue model that includes annual commissions on all policies, including renewals. Nsure.com currently operates within the state of Florida with plans to expand nationwide through the strategic partnership with RELI. Key benefits of the Nsure.com platform include:
- Simplified application process – Nsure.com uses artificial intelligence and other advanced technologies to mine multiple data sources and auto-fill complicated insurance applications, e.g. home characteristics: construction type, roof shape, roof covering, foundation type, flood zone, etc.
- Real-time connection with over 30 top-rated insurers allows consumers to transparently compare real, not estimated, quotes from multiple insurers side-by-side.
- Instant accurate coverage recommendations for home and auto insurance, providing consumers confidence they are not under or over-insured.
- In-house insurance buying/policy binding capabilities means no redirection to other websites and ability to finalize purchases on Nsure.com in as little as five minutes.
- Free and secure account enables 24/7 access to quotes, policies and other documents.
- When it’s time for a policy renewal, Nsure.com automatically informs customers about the best offers in the market before their policy expires.
Nsure.com has a team of licensed insurance agents available to answer any questions, and guide clients through the claims process. These agents are not salespeople, but rather licensed specialists trained to help customers with any insurance question.
Ezra Beyman, CEO of Reliance Global Group, stated, “We believe this strategic investment and partnership with Nsure.com will be a transformative event for the Company for two key reasons. First, we believe our equity investment into Nsure.com has the potential to drive massive value for our shareholders. Being on the front lines of the insurance agency business, we recognize that this is a market ripe for disruption like so many industries before, such as online shopping, online travel, etc. However, given the inherent regulatory hurdles, the insurance industry has been slow to adapt—until now. We conducted extensive due diligence into Nsure.com, and believe their technology addresses all the key hurdles necessary for consumer adoption. Nsure.com has developed proprietary technology that makes it quick and easy for consumers to compare and buy insurance online, enabling them to save time and money. The US personal home and auto insurance market is valued at approximately $340 billion in annual premiums and more than $34 billion in recurring annual insurance agency commissions. We estimate that a mere 10% of the market is now online. As this market migrates from offline to online, we believe Nsure.com will be at the forefront of the industry. Moreover, the current insurance purchasing processes is time consuming and lacks transparency. It is estimated that Americans overspend for their home and auto insurance by $30 billion annually. Most of the current online sites are simply lead generators, which result in false insurance quotes, constant spam and aggressive sales pitches. Consumers are looking for a partner website they can trust. For this reason, we look forward to working closely with Nsure.com to help foster their success and drive value for both consumers and our shareholders.
“The second key benefit of this transaction is that we will now be able to utilize Nsure.com’s proprietary backend processing technology to support our traditional agency business. Specifically, we can focus on growing revenues, by acquiring traditional ‘offline’ home and auto agencies, while Nsure.com can more cost effectively service the acquired policies. By implementing artificial intelligence, robotic process automation (RPA) and automatic shopping for best rates at renewals, we believe we can dramatically reduce costs, and allow our agents to focus on selling new policies, creating a digitally empowered and scalable insurance agency model. Through continued M&A of cash flow positive and accretive acquisition, we look forward to rapidly expanding our network nationwide. We believe the competitive advantages offered by aligning with Nsure.com will support our accelerated growth and drive massive value creation.”
“Our Florida customers love Nsure.com because of the exceptional ‘Amazon-like’ insurance shopping experience. This planned $20M financing from Reliance will be used to fuel Nsure.com’s nationwide expansion, with a goal to establish a strong presence in markets covering more than 80% of U.S. population by the end of 2021,” said Wojtek Gudaszewski, CEO of Nsure.com. “This investment partnership is also timely, as the insurance sector is undergoing rapid transformation. According to FT Partners report, in 2019 total financings within the insurance technology marketplace reached $4.4 billion, representing 76% growth over the same period last year. Companies like Hippo Insurance, Lemonade and Root have each surpassed $1 billion valuations. We look forward to deploying this capital towards accelerating product development, expanding our team, building partnerships with mortgage originators and acquiring new customers.”
Based in Florida, Nsure.com is the first all-digital licensed insurance agency that provides auto and home insurance via its secure website. Employing the most advanced data technology to track up-to-the-minute, real, not estimated, quotes from more than two dozen insurance carriers, Nsure.com enables customers to take complete control of the insurance buying process on their smartphones, tablets and computers. The company’s platform delivers a hassle-free experience, from a streamlined application process and instant quotes to no sales pitches and a simple renewal process that automatically updates quotes just prior to expiration so that customers can take advantage of the best rates and coverage possible.
About Reliance Global Group, Inc.
Reliance Global Group, Inc. (OTCQB: RELI) is moving forward with its goal to operate as a holding company for several companies in the real estate, insurance brokerage, and potentially other sectors. RELI’s focus continues to be to grow the Company by pursuing an aggressive growth strategy of acquisition opportunities, including both real estate and insurance agencies. Insurance agencies, as opposed to insurance carriers, bear no insurance risk. The Company is controlled by Reliance Global Holdings, LLC, a New York-based limited liability company, which is the owner and operator of numerous companies with core interests invested in real estate and insurance brokerage.
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and elsewhere. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
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