Scout InsurTech Interview with PAVO

PAVO Insurance Solutions, a leading premium finance marketplace, aims to integrate insurance financing with cutting-edge technology platforms. Michael Fiedel sat with CEO and Founder, Katie Wexler, to learn more about how PAVO is impacting the industry.

What is PAVO’s client focus?

"We work with a variety of clients in the insurance industry, from retail brokers and wholesalers to managing general agents (MGAs), program platforms, broker admin systems and carriers. Our Pavo comparative rater for finance companies is a tool that helps these clients make informed decisions about their insurance needs. We also help payment and premium finance companies by connecting them with insurance professionals from various sectors."

What does your product do?

“As the industry's pioneering premium finance marketplace and management system, we revolutionized broker-enhancing technology. Our breakthrough finance-comparative rater delivers multiple financing quotes at the point of sale, accelerating the process, minimizing errors and elevating the insurance purchasing experience for brokers and insureds alike.

The Pavo portal seamlessly handles the entire finance lifecycle: from applications and quotes to comparisons, endorsements and the purchase process. It encompasses in-app signature, electronic down payment processing and monthly installment processing, ensuring a streamlined and efficient experience.

Furthermore, our distinctive cancellation prevention technology empowers agents with real-time updates on loan status, late payments and pending cancellations related to their clients' insurance policies. This proactive approach helps prevent cancellations, safeguarding the continuity of coverage while providing valuable insights to agents for proactive customer engagement.”

How much capital have you raised?

"Our top priorities are fostering growth and developing innovative insurance finance products; therefore, we prefer to maintain confidentiality regarding funding. The milestone for success of a company should be product and sales not fundraising."

Was the company born from within or outside the industry?

“The executive leadership team is a hybrid, composed of diverse backgrounds. Each member possesses considerable experience in both the Managing General Agent (MGA) sector and other industries outside of insurance, contributing to the development of our product offerings and capabilities. We recognize the significance of enhancing the broker experience, streamlining outdated processes and pioneering cutting-edge technology within the industry. Being on the ground with firsthand knowledge of the challenges faced by brokers and understanding their needs significantly shaped the idea and vision for Pavo."

What growth metrics have you accomplished over the last 12 months?

“On the product side, we built a cutting-edge premium finance and payment management system that streamlines workflows, reduces cancellations and improves the customer experience for insureds and brokers. In the realm of business development, we have forged exciting partnerships, cultivated a substantial pipeline and acquired new clients across the broker, MGA and platform segments.”

Within your domain, what is the current challenge that the industry is facing?

“Insurance is pretty antiquated. We're at the start of a digital-technology revolution. In the premium finance and payment segment, there has been a lack of investment, and this has lagged behind the rest of insurance. For example, there are long implementation cycles for platforms. This poses a challenge for these platforms to incorporate financing options into their systems. Pavo addresses this issue by developing a straightforward API integration. This solution enables platforms to seamlessly integrate financing options into their systems, either as a native or embedded at the point of checkout.

Brokers face significant challenges when it comes to obtaining financing quotes from multiple sites and managing a portfolio across several finance companies. This process is cumbersome, resulting in increased workload, duplicate data entry and prolonged sales cycles. Furthermore, it can lead to errors in payment processing, causing cancellations, reinstatements and frustration among insureds. Pavo has effectively addressed this cluster of problems, offering a comprehensive solution that streamlines the financing process for brokers.

The cost of insurance is on the rise and some SME (Small and Medium Enterprise) businesses have struggled to obtain affordable insurance coverage; however, we are now witnessing a growing number of larger businesses that want to finance to improve cash flow. By providing brokers and their clients with a wider range of financing options, Pavo helps improve bind ratios, reduce cancellations and streamline the payment and closing process.”

How does PAVO take a unique approach to providing value?

“Our organization empowers insurance brokers, MGAs and programs to seamlessly integrate financing options into their offerings. We provide a significantly enhanced process that minimizes errors and streamlines the financing experience. This process is characterized by increased speed and simplicity, with accessibility serving as a key differentiator. We have implemented a comprehensive one-stop-shop model that addresses the unique value chain requirements of specialty insurance. Our commitment to efficiency is evident in our utilization of digital data injection, which reduces manual data entry and eliminates duplicate work for brokers and their staff.

Furthermore, our robust API integration and embedded connections enhance connectivity and facilitate seamless data transfer. It’s important to note that our innovative platform is patent pending, underscoring our commitment to delivering cutting-edge solutions. Additionally, our platform provides real-time side-by-side rate comparisons, ensuring that our clients consistently secure the most favorable financing options without encountering any complications.”

What inspired the team to start this company?

"Our organization is dedicated to addressing complex problems and alleviating pain points. We acknowledge that this particular segment presents a significant challenge, with limited options available. Our primary objective is to enhance and optimize a process that has been largely overlooked."

Can you share any goals for the next 12 months?

“In the coming year, we're fully dedicated to enhancing our product offerings. The innovative ideas shared by our clients have been instrumental in our success thus far. While our primary focus remains on simplifying financing and payments, we recognize the importance of collaborating with diverse partners. From insurance brokers and carriers to policy management systems, agency management systems and financing companies, we aspire to be your comprehensive solution provider. Regardless of your role in the insurance industry, we aim to serve as your one-stop shop for all your needs.”