Slingshot

Executive Briefing

Why the World's Largest Carriers Can't Serve the Fastest-Growing Insurance Market

Ethan · Co-Founding CEO Justin · Rally Ventures Brock · Vertical Insure
Confidential · Not for distribution

Agenda

55 minutes of your time.

15 min

The Inversion

What shifted, why it matters, and what the data looks like

10 min

The Carrier Gap

Why legacy carriers are structurally locked out

10 min

The Architecture

Purpose-built carrier infrastructure for the inverted market

10 min

Slingshot

The offer, the team, and how to engage

10 min

Q&A

Open questions. Anything goes.

97%

of fronting carriers were built for a market that's shrinking.

Source: Slingshot analysis of 107 U.S. carriers

Section 1: The Inversion

The 200-Year Assumption

Low

Frequency

Rare events

High

Severity

Catastrophic loss

$5K+

Premium

Per policy

Every piece of carrier infrastructure --- actuarial models, data pipelines, staffing ratios, regulatory frameworks --- was built around this assumption.

Then the market inverted.

High

Frequency

500K+ transactions/year

Low

Severity

Embedded micro-risk

$25

Premium

Per policy average

Youth sports. Event cancellation. Gig worker coverage. SaaS platform add-ons. Insurance at the point of checkout. Growing 30%+ annually.

Embedded Insurance Market

$18B to $72B in five years.

2020 $18B
2022 $36B
2025 $72B
2028 $144B
2034 $1.4T

Sources: Fortune Business Insights, industry reports, Slingshot original analysis. 35%+ CAGR projected.

The economics that protected carriers for 200 years now lock them out.

$20M

Minimum program size

State National, Fortegra, Markel, Concert

$3M

Typical first-year embedded book

120,000 policies at $25 each

The Real Cost of a Carrier Relationship

5% buys you paper. The rest costs 25-40%.

5%
Carrier fee (paper + license)
5-8%
Technology platform
3-5%
Compliance + actuarial consulting
$200K+
Reconciliation labor (5 people, 3 weeks/quarter)
$1-5M
Trapped collateral at reinsurer
25-40% total effective cost

5-6 vendors. Nobody owns the whole picture.

The Pattern

We've seen this movie before.

Payments in 2009

20-page bank applications

Weeks to months for approval

$50,000+ setup cost

Nightmare technology

Insurance in 2026

6-month carrier onboarding

$20M minimum programs

$200-500K to set up an MGA

Excel + email + fax

Stripe didn't just capture existing payments demand. It created new demand by making infrastructure accessible.

Payments: $2 trillion. Insurance: $3+ trillion. The economics per transacted dollar are juicier.

Section 2: The Carrier Gap

It's not a technology problem. It's an architecture problem.

Case Study

Swiss Re tried. $35B in backing. It failed.

$35B

Company value

$100M+

Invested in iptiQ

Selling

Current status

They built on top of existing carrier economics. The architecture was wrong. Unlimited capital cannot fix the wrong foundation.

Two approaches. Only one works.

Bolt-On

Legacy core system (1990s)

+

AI layer (bolted on)

+

API wrapper

+

Reporting patch

AI can only be as good as the data it touches.

Purpose-Built

Unified data model

AI-native operations

Carrier economics for $25 policies

Every data object has a birth certificate

Architecture determines outcomes.

Snapshot vs. Restated.

The distinction your carrier hopes you never ask about.

When your carrier sends you a bordereau, is that number the snapshot --- the number at the moment of calculation --- or the restated number, quietly adjusted after the fact?

Most carriers don't distinguish. Numbers get adjusted. You don't know which version you're looking at.

0% of 107 carriers analyzed distinguish between snapshot and restated data.

On a $20M MGA Program

The hidden tax on MGA operations.

Manual reconciliation

5 people, 3 weeks every quarter

$200K

Trapped collateral

Reinsurer can't verify data

$1-5M

Knowledge loss from turnover

Every departure resets to zero

Unquantifiable

Compliance risk

Every audit is a fire drill

Unquantifiable

Total annual cost

$500K-$2M

On top of the 5% carrier fee you're already paying.

Section 3: The Architecture

What if every data object had a birth certificate?

Data object lineage.

Policy #EMB-2026-047291
ORIGIN

Created via API integration, checkout flow

2026-04-11T14:23:07Z | Source: partner-api-v2

CUSTODY

Ingestion engine → Validation → Underwriting → Binding → Bordereau

5 custody events | 0 modifications | 0 restatements

VERSION

v1 (original) --- no modifications

All prior versions accessible | Full diff available

ACCESS

3 access events logged

MGA admin (2x) | Reinsurer query (1x) | Full audit trail

30 seconds to answer "where did this number come from?" Not 30 days.

The platform remembers what people forget.

Day 1 performance equals Year 5 knowledge.

Every underwriting decision, every claims pattern, every risk assessment, every exception --- stored as structured knowledge that persists regardless of who is sitting in the chair.

Economics

Cost per policy determines viability.

$15

Legacy carrier cost per policy

Fine at $5,000 premiums. Fatal at $25.

<$1

AI-native cost per policy

$3M programs become profitable.

This is what makes sub-$20M economics viable. This is what makes the inverted market accessible.

The Collective Effect.

What happens when multiple MGAs share a carrier that learns from all of them?

Peer Benchmarks

See how your loss ratio, frequency, and pricing compare to anonymized peers. Intelligence you cannot build alone.

Reinsurance Leverage

Negotiate with aggregate GWP. One book gets one data point. Twenty books get 20x the negotiating power.

Data Sovereignty

Individual program data structurally separated from aggregate intelligence. Guaranteed by architecture, not contracts.

Not an ecosystem pitch. No Slack channels and quarterly webinars in exchange for your logo.

The Team

So who's building this?

Ethan

Co-Founding CEO

Chief Actuary at Palomar ($10B carrier). $2B premium. 500 employees. Writes production code. The actuary-engineer combination that doesn't exist in insurance.

Justin

Rally Ventures

20+ years in embedded finance. Invested in this space since before Stripe was Stripe. Applying the payments playbook to insurance.

Brock

Co-Founder / First Customer

Built Vertical Insure. Experienced every carrier pain point from the MGA side. Co-founded the solution. Not just a co-founder --- the first customer.

The Slingshot Model

One carrier. Three engagement levels.

Launchpad

SaaS founders & new entrants

MGA entity creation

Product design

Regulatory pathway

Category education

API integration

Reinsurance placement

5.5%

of GWP. No upfront cost.

90-day launch guarantee

Operator

MGA founders, $5-50M programs

Everything in Launchpad, plus:

Artifact-based data trust

Snapshot vs. restated reporting

Institutional memory engine

Automated reconciliation

Progressive risk retention

5%

Same price. Different century.

Clean Exit data guarantee

Collective

High-performing MGAs, $50M+

Everything in Operator, plus:

Peer benchmarking

Aggregate reinsurance leverage

Auditable data sovereignty

Governance seat (founding)

4.5-5%

Negotiated by program.

Benchmark performance guarantee

What 5% buys you.

Today (Legacy)

50-state licensing

Statutory capital

Regulatory compliance

That's it. The paper.

With Slingshot

50-state licensing

Statutory capital

Regulatory compliance

+ AI-native technology platform

+ Artifact-based data trust

+ Automated reconciliation

+ Institutional memory engine

+ Reinsurance optimization

+ Progressive risk retention

+ Collective benchmarks

Same price. Different century.

The questions you should be asking.

01

"Show me the lineage of a single data object. In this meeting. In 60 seconds."

02

"Is this bordereau number the snapshot or the restated version?"

03

"What is my cost per policy? Can you profitably serve a $3M program?"

04

"If I leave, what format does my data arrive in, and when?"

05

"Who can see my data, and what structural guarantee prevents misuse?"

Ask these to every carrier you talk to. Including us.

Year 1 Only

Founding Member.

36 mo

Locked carrier fee rate. Rates will increase as collective value compounds.

Ethan Direct

Personal onboarding, actuarial review, and reinsurance introductions from a $2B carrier veteran.

Governance

A seat at the table. Real authority over curation standards and membership criteria. Once filled, they don't reopen.

10 programs maximum in Year 1. Capacity constraint, not marketing number.

Three paths forward.

Pick the one that matches where you are.

Strategy Session

Model embedded insurance revenue for your specific platform.

30 min, no commitment

API Sandbox

Your engineering team evaluates integration and data architecture firsthand.

48hr provisioning

Technical Deep-Dive

Birth certificate protocol, live. Actuary to operator. Architecture, not marketing.

With Ethan directly

Slingshot

The insurance market inverted.
We built the carrier for what comes next.

slingshot.com

ethan@slingshot.com | justin@slingshot.com

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