The company that wants to turn every software platform into an insurance company - without asking it to hire a single actuary.
Most insurance startups redesign the quote form. Authentic went after something less visible and far harder to replicate: the machinery underneath. The New York company builds the infrastructure that lets software platforms, franchisors and associations launch their own insurance programs - captives - for the small businesses they already serve.
A captive is an insurance company owned by the people it insures. The model has existed for decades, but standing one up traditionally required lawyers, actuaries, reinsurance treaties and millions in capital. Authentic packaged all of it into software it calls Captive in a Box.
The result is that a gym-management platform or a restaurant software company can offer tailored coverage to its customers through a single integration - while Authentic runs the underwriting, rate filings, reinsurance, capitalization, regulatory compliance and claims behind the scenes.
Founder and CEO Cole Riccardi frames the opportunity bluntly: the way commercial insurance is bought and sold hasn't meaningfully changed in half a century. Authentic's bet is that distribution - reaching businesses inside the tools they already use - is where that changes.
Authentic's members are the businesses too small for traditional carriers to court and too numerous to ignore: gyms, salons and spas, restaurants, barbershops, retailers and professional-services firms - typically under $5 million in annual revenue. It reaches them not directly, but through the platforms they trust.
Commercial insurance is priced and sold for larger accounts. Small operators get generic policies, slow service and little say in how their risk is managed - and none of the upside when they run clean.
The member-owned captive model rewards good risk, but building one meant actuaries, reinsurers, regulators and capital most communities can't assemble on their own.
Partners embed coverage inside software small businesses already use every day, so buying insurance becomes part of running the business, not a separate chore.
Because members effectively own the program, when claims come in lower than premiums, the savings can return to them as dividends - aligning incentives around lower risk.
The way insurance is bought and sold hasn't changed in over 50 years. We're truly changing the commercial insurance industry.— Cole Riccardi, Founder & CEO
A partner integrates once. Authentic operates the insurance company that sits behind it - the parts that normally take years and a room full of specialists.
Actuarial analysis, rate setting and regulatory filings to bring a compliant program to market.
Domiciling the captive, arranging reinsurance and putting capital behind the risk.
A unified rate-quote-bind engine lets partners sell tailored Business Owner's Policies inside their product.
Ongoing administration, claims management and customer service - plus dividends when claims run low.
The core end-to-end platform that lets a community stand up a captive program without a traditional carrier - underwriting, filings, reinsurance, capital, compliance and claims in one system.
An embedded operating system with an integrated quoting engine partners add via a single integration, so their customers can buy coverage in-product.
Customized commercial coverage for gyms, salons, restaurants and barbershops - with member dividends when the program runs clean.
Planned expansion of lines beyond BOP into workers' compensation, with additional coverage types such as health over time.
The U.S. commercial insurance market topped $275 billion in 2023 and is projected to nearly double by 2032. Insurance is famously recession-resistant - businesses keep coverage even when they cut elsewhere. Most insurtechs compete on a slicker front end for a carrier's product. Authentic's difference is that it owns the full captive stack rather than reselling someone else's policy. FirstMark Capital put it in stark terms: the platform can "virtually eliminate the need for traditional carriers."
Scheduling and business-management software for studios, gyms and spas - a channel into wellness small businesses.
Restaurant management software embedding Authentic coverage for food and beverage operators.
Gym operating system offering Authentic-powered insurance to gym and fitness owners.
Barber booking app bringing tailored coverage to barbers and barbershops.
Authentic's model traces back to an unlikely place: horse racing. Riccardi's family was involved with Big Stakes, a captive insurance program in the sport that shared unclaimed funds back with trainers - a design that rewarded safety by giving the insured a stake in the outcome. He recognized the same incentive structure could work for small businesses in commercial insurance, and built Authentic around it.
Cole Riccardi launches Authentic Insurance Services to bring the captive model to small businesses.
Raises $5.5M led by Slow Ventures and launches Captive in a Box in September 2023.
FirstMark Capital leads an $11M round (total $16.5M); signs 10+ partners, reaches 1M+ businesses and plans new lines.
Profile compiled from public sources including the company website, its blog, AlleyWatch, FinTech Global, Coverager, Captive.com, Captive Insurance Times and Insurtech Insights. Figures such as revenue and headcount are third-party estimates and approximate.