Pact ventures into the B2B space

Pact, the California-based car insurance MGA, is the latest D2C startup to venture into the B2B space. The company recently developed a new mobile app for Nations Insurance Company, a small California-based carrier (~$28M in premiums) offering “competitive non-standard rates.” According to a company source, this new B2B initiative is in addition to the D2C offering.

Founded in 2018, Pact is currently available in Ohio and Arizona with policies provided by State National. The startup, which is led by Paul Lee, Nelson Estrada and Julian Okuyiga, was a team of 15 in late 2018, and today it is a team of 12 according to LinkedIn*.

In August 2019, Pact introduced Pact Pause, a feature that allows policyholders to save money by adjusting their limits when they’re not driving. The feature removes or lowers to the lowest legal limit driving-related policy coverage while maintaining vehicle protection for non-driving incidents. Through the Pact app, policyholders can set a pause period for a minimum of two days and when the pause period is over, driving-related coverages are automatically reinstated.

https://youtu.be/KLmjRdT3mwc

Speaking of the Pact app, last week’s update ended a ~6-month period without updates.

*Update: According to Paul Lee, Pact’s CEO, the company employs 25 individuals.