Other participants in the financing round include The K Fund, HSCM Ventures, Sandbox Industries, and Flyover Capital.
Layr plans to use the funds to advance its go-to-market operations and enhance the platform functionality tailored for brokers.
The company specialises in serving independent commercial insurance brokerages, offering cloud-based tools and services. These tools aim to boost broker profitability and enhance customer satisfaction in the realm of small business insurance operations.
Simplifying insurance processes for brokers
According to executives, Layr simplifies the intricate, manual processes of small business insurance. Brokers using the platform can effectively handle up to six times more small business clients, elevating brokerages’ small business units into high-margin realms. Layr also says that its platform optimises the insurance experience for small business owners who typically face challenges managing their enterprises.
The Census Bureau data indicates a significant surge in small business creation in 2022, with over 5 million new businesses—a 40-plus percent increase from pre-pandemic levels. Recognising the potential for brokers to grow top-line revenue, Layr addresses the inefficiencies and costs associated with managing small business insurance policies due to legacy systems and licensed staff requirements.
The company’s solution combines industry expertise with technology, modernising the policyholder experience and enhancing operational efficiency.
Phillip Naples, founder and CEO of Layr (main picture), explained: “One of every four dollars in the GDP goes through the insurance industry, yet it’s glacially slow to change. Many of the tools to distribute and service insurance products are outdated, using the same technology as when I entered the industry 20 years ago. Layr’s changing that for underwriters, brokers, and policyholders.”
He continued: “When brokers use Layr for their small business insurance management, their policyholders receive insurance services that are as easy and painless as their online banking. With Layr, broker partners handle more clients with ease and at higher margins, all while gaining valuable business intelligence. It’s time to bring small business insurance into the 21st century.”
Stewart Pond, principal, Cota Capital, also commented, saying: “Layr’s platform is built by veterans of the commercial insurance industry who understand the challenge that brokerages face to service small business customers.
“The small business insurance market is large and growing but inherently costly to manage. The challenge is compounded further by an undersupply of licensed account managers, acting as a bottleneck to longer-term growth of the brokerage. Layr aligns their incentives with the broker, by leveraging its platform to service customers at higher profit margins while ensuring a best-in-class experience.
“Insurance carriers recognise the value that brokers provide as a trusted advisor in their community as customers seek coverage. Layr is building the infrastructure to automate manual, time-intensive tasks and help brokers focus on areas where they can provide the highest value for customers.”
Pond concluded: “We believe that Layr has the team, the technology, and the vision to become a leader in small commercial insurance and a de facto solution for brokers as they scale their business.”
Cutting the manual paper trail in insurance processes
The Layr platform digitises all paper-based data and eliminates 100 percent of manual invoices and checks, the vendor statement said Sean O’Hare, VP, Holmes Murphy.
“Layr has turned our small business book from a cost center to a profit centre. The reality is that small commercial clients are active and having an on-demand resource for them to manage their insurance program is beneficial for them and us.”
Author: Joanna England
