A delay would have cost millions…literally

Timing was of the essence for Mount Beacon founder Doug Vatter. In August of 2014, Mount Beacon
engaged WPIS to take out homeowners policies from Florida’s state pool and to serve as the back office
for the policy administration. Having reviewed the offerings from enterprise software vendors, Mount
Beacon had two concerns (1) time to market (2) cost The quoted implementation timelines would have
meant risking significant increases in reinsurance costs, the closer the projects drew toward June of
2015 Further, capital outlay and annual service agreements stressed the financial model of a newly
established entity.

In sharp contrast, WPIS, having successfully performed 48 take outs for six other carriers, promised a 90-
day implementation, with a per policy pricing model. This transactional fee structure, coupled with a
guarantee to be up and running by fall, assured Mount Beacon of a financially feasible program. As
promised, Mount Beacon took more than $50 million in policies by February of 2015. The estimated
savings on reinsurance alone was between $10 - $12 million to this new insurance carrier. In today’s
market, that equates to approximately $200-$300 per policy on a $1,000 policy.

Prior to starting Mount Beacon, Vatter spent two decades with Progressive and Allianz, specializing in
back office systems. With a full understanding of the systems and expertise to support the new book, he
chose to outsource the entire back office to WPIS When asked the most important benefit received
from outsourcing, Vatter responds, “Peace of mind. If you’re scaling up a new or existing venture, WPIS
can help you grow big without outlaying significant costs and execution risks. There is significant
business risk in attempting to develop your own processes and procedures. We chose to focus on
growing the business and successfully accomplished that without the back-office headaches.”

Mount Beacon was sold to Florida Specialty Insurance in 2015 and today Vatter is president of WPIS. In
his leadership role, he is often reminded of his own customer experience with WPIS and the savings that
speed to market afforded him. Delays could have cost Mount Beacon and WPIS’s other successful clients
millions…literally. This experience informs WPIS’s deliverables today, whether offering speed into new
markets, or efficiently taking over back office responsibilities.


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