This document contains confidential and proprietary information belonging exclusively to AppWork Technologies Inc. It is intended solely for the use of the individual or entity to whom it is addressed. Any review, dissemination, distribution, copying, or use of this information by persons or entities other than the intended recipient is strictly prohibited. If you have received this document in error, please notify the sender immediately and destroy all copies.
Insurance Strategy

Unlocking the
Insurance
Value Chain

AppWork's operational data is a material asset in the insurance underwriting process. This analysis evaluates five strategic paths to monetize that advantage.

5
$50B+
$10–25M
30–35%
Market Validation

The Market
Is Moving

Sertis + Leonardo247
MGA + PropTech Data Partner · Direct Analog

Sertis built a multifamily MGA backed by Accelerant (AM Best A-) and used Leonardo247's operational compliance data to create the Sertis Risk Indicator — a proprietary underwriting score. Now writing in 32 states. This is the closest existing model to what AppWork could build.

Primary Competitor
Procore Risk Advisors
Construction SaaS → Insurance Brokerage · Structural Parallel

Procore launched an in-house construction insurance brokerage in 2023 backed by Allianz and Swiss Re. It leverages platform data to compress quote timelines from weeks to days and autofill applications — the exact playbook AppWork could run for multifamily property.

Strategic Blueprint
Research Log

Summary of
Recent Updates

Date Update Source
Apr 9, 2026 Version 5: Alliant follow-up with Joe Tuck & Matt Nicholas — Matt revealed prior history building the Leonardo247 risk score criteria and a prior attempt at a similar WTW/Alliant MGA program ("Willis Series"). Concrete partnership path identified: Alliant MGA affiliate + Accelerant (carrier) in a non-exclusive revenue share model. WTW VSaaS Initiative surfaced as high-priority re-engage opportunity — WTW is actively embedding insurance into vertical SaaS platforms via Kayna; AppWork's data is a direct fit for this program. Alliant Collaboration F/U — Joe Tuck & Matt Nicholas · WTW VSaaS Initiative Deck
Mar 27, 2026 Version 4: Broker intelligence calls completed with Wilhelm Risk (Avi & Bella, NJ/NY) and Levitt Fuirst (Jason, Westchester). Key findings: carrier scarcity is the primary NY MF challenge; no direct premium discounts exist for tech platforms; best near-term AppWork value prop is renewal readiness for disorganized PMs. Aspire (Brian Genetsky) flagged as a tech-enabled MGA to explore. Labor Law 240 confirmed as dominant liability driver in NY. Broker Calls — Wilhelm Risk & Levitt Fuirst · March 24, 2026
Mar 13, 2026 Version 3: Strategic priority framework established — Broker Partnerships & Third-Party Claims Management set as Priority 1 (active pursuit). Active pipeline: Willis Tower Watson, Alliant, Northland, American Landmark. Meetings confirmed with Wilhelm Risk and Levitt Fuirst (week of March 23rd). Gallagher Bassett intro coordinating. Weekly Update — 3/13/26 strategy review with Sean Landsberg
Mar 7, 2026 Added Quoting Mechanics & Premium Drivers research — key findings from underwriting framework study including operational scoring factors and landlord optimization levers Research PDF — Quoting Mechanics, Premium Drivers & Landlord Optimization Framework
Mar 7, 2026 Added Revenue & Commission Structures research — full ecosystem economics for carriers, brokers, MGAs, and TPAs with multifamily market premium benchmarks Research PDF — Revenue & Commission Structures in Commercial & Multifamily Property Insurance
Mar 4, 2026 Broker call with Joe Tuck (Alliant Insurance) — confirmed 6 operational factors carriers evaluate; Joe to introduce AppWork to Sedgwick; client to send one-pager Expert Interview — Joe Tuck, Alliant Insurance (Real Estate Vertical, Denver)
Research — Added Mar 7, 2026

Quoting Mechanics &
Premium Drivers

Key Findings at a Glance
1

Loss history is the single most powerful premium driver — a clean 3–5 year loss run can reduce premiums by 15–30%, while a single large claim can trigger 25–50% increases.

2

Operational quality scores — formal maintenance tracking, documented inspection protocols, and staff accountability — function as underwriting modifiers, capable of offsetting geography-driven surcharges.

3

Carriers are actively seeking differentiated data signals to price multifamily risk more precisely — structured operational data from a platform like AppWork directly addresses their underwriting gap.

4

Property characteristics (age, construction type, roof condition) are the primary structural baseline — but soft factors like management quality can meaningfully adjust the final quote within carrier guidelines.

5

The "landlord optimization framework" — systematic documentation of preventive maintenance, rapid response to work orders, and consistent site inspections — is the highest-ROI lever for reducing premiums.

6

Brokers who can present structured, carrier-ready underwriting packages command better placements and faster quotes — positioning AppWork as a "broker amplifier" is a viable and differentiated strategy.

Section 2.4 — Operational and Management Factors
📋 Formal Processes & Documentation

Carriers reward landlords who can demonstrate systematic approaches to property management. Key documentation factors include:

  • Written preventive maintenance schedules with completion records
  • Documented inspection protocols (frequency, scope, sign-off)
  • Emergency response procedures (written and practiced)
  • Incident reporting logs with root-cause notes
👥 Staffing & Accountability

Underwriters evaluate whether management structures align incentives with risk reduction:

  • Named property managers with defined responsibility scopes
  • Work order response time standards (tracked and measurable)
  • Vendor qualification and oversight documentation
  • Maintenance staff training records and certifications
💻 Technology & Data Systems

Technology adoption signals operational sophistication — increasingly used as a direct underwriting input:

  • Digital work order platforms with timestamped audit trails
  • IoT sensor data (water leak detection, HVAC monitoring)
  • Analytics dashboards showing maintenance velocity and resolution rates
  • Carrier-ready data exports for renewal underwriting submissions
"

Insurance companies want formal processes of regularity — they want to see that you inspect every apartment on a consistent schedule, that you have an emergency procedure, that you track work orders to closure. When you can show all of that in one package at renewal, you're a different kind of risk.

— Joseph Tuck, Alliant Insurance · Real Estate Vertical, Denver · March 4, 2026
Research — Added Mar 7, 2026

Revenue & Commission Structures
in Commercial & Multifamily Property Insurance

Key Highlights
Carrier
96.5%
Industry combined ratio — margins are thin but scale-driven; carriers profit through investment income on float
Retail Broker
10–22%
Base commission on premium; top brokers layer contingent commissions and profit-sharing on top
MGA
22–35%
Gross commission on GWP; net ~$0.10–$0.16 per $1 of premium after ceding and expense
TPA
$1K–1.5K
Per-claim fee structure; separate economics entirely from the premium/commission chain
Key Finding by Section
Section Key Finding
Carriers Premium increases of +75% from 2019–2024 have restored profitability; market is now softening, creating room for structured data partnerships and alternative distribution
Brokers 10–22% base commission; relationships drive placement and access, but brokers lack differentiated data — a structured underwriting package is a material competitive advantage
MGAs $114B market growing at +16% YoY; MGA model offers the highest margin capture in the chain — net ~10–16 cents per dollar of premium with delegated underwriting authority
TPAs $1,000–$1,500 per-claim fee; separate from the commission chain — relevant if AppWork plays a claims facilitation or advocacy role
Variables #1 driver of all economics is loss ratio — structured operational data that demonstrably reduces claims frequency is the most valuable currency in the entire ecosystem
Full Ecosystem ~$0.10–$0.16 MGA net per $1 premium; a platform at the center of this ecosystem with proprietary loss-reduction data commands a structurally defensible position
Strategic Implication for AppWork

AppWork sits in a structurally advantaged position: it generates the exact operational data — maintenance frequency, response times, inspection records, incident logs — that drives loss ratio outcomes. If AppWork can connect that data to the underwriting process (via a broker, an MGA, or directly), it can credibly claim a share of the commission and fee economics currently captured by intermediaries who have no access to this signal. The MGA path offers the highest margin capture; the broker amplifier path offers the lowest execution risk. Both are viable.

Multifamily Market Premium Context
Metric 2019 2022 2024 Notes
Avg premium / unit / year ~$400–600 ~$700–900 ~$900–1,200 +75% increase peak-to-trough; now softening in most metros
High-risk geography (New Orleans, Miami) >$1,600/unit Catastrophe-exposed markets; operational data especially valuable for underwriters here
Operational quality discount range 15–30% Clean 3–5 year loss run + documented ops = achievable discount on renewal
Single large claim impact +25–50% One significant claim can reverse years of favorable underwriting treatment at renewal
Live Activity — Apr 9, 2026

Active Conversations
& Pipeline

Broker & Client Conversations
Willis Towers Watson
Broker · High Priority — Re-engage

WTW is running a VSaaS Initiative — embedding instant quote-and-bind into vertical SaaS platforms via their Kayna partnership. AppWork's operational data is precisely what this program is designed to ingest. Re-engage WTW not just as a broker, but as a potential VSaaS program partner.

Alliant — Joe Tuck & Matt Nicholas
Broker · Active · Follow-up Apr 9

Matt Nicholas revealed deep prior history with the Leonardo247 risk score and previously tried to build a similar program at WTW ("Willis Series") and Alliant. Alliant's MGA affiliate + Accelerant (carrier) is a concrete partnership path — non-exclusive, revenue share model. Next step: AppWork needs to package quantifiable claim/loss data to open carrier conversations.

Northland — Daniel Schmidt
Carrier · Intro Pending

Sean connecting with his contact to ask Daniel Schmidt to respond.

American Landmark — Rachel
Client · Intro Pending

Sean introducing Steve to Rachel to discuss their renewal process and how AppWork made a positive impact.

Meetings Pipeline
Wilhelm Risk — Avi & Bella
✓ Completed
Broker · March 24, 2026 · NJ/NY Market

Avi skeptical on tech-insurance integrations historically not working — framed insurance as fundamentally an underwriting business. Key signal: HPD violations are primary NY underwriting screen. Flagged Aspire (Brian Genetsky) as a tech-enabled MGA worth exploring. Second half covered Wilhelm Risk's own AI/RPA automation needs.

Levitt Fuirst — Jason
✓ Completed
Broker · March 24, 2026 · Westchester, NY

Confirmed carrier scarcity as #1 problem in NY MF — building age and construction type gate conversations before operations matter. No direct premium discounts exist for tech platforms. Best near-term value: AppWork as a renewal readiness tool for disorganized property managers. Labor Law 240 is the dominant liability driver. Mentioned Greater New York as a potential carrier contact.

Gallagher
Coordinating
Broker · NY office contacts
Gallagher Bassett
Coordinating
Claims Manager · Construction group intro
Strategic Options

Strategic Paths
Forward

🎯 Priority 1 — Active Pursuit
P1
🤝

Broker Partnerships & Distribution

Partner with brokers to leverage their client networks, offering AppWork customers better insurance terms in exchange for structured operational data. Flexible commission or discount model — lowest friction path to market.

Complexity: Low · Active Now
P1
⚖️

Third-Party Claims Management

Partner with or operate as a TPA — managing property claims on behalf of carriers. AppWork's maintenance records and incident logs drive faster, better-documented resolutions. Claims Managers earn a % of payout, making AppWork data a direct earnings multiplier.

Complexity: High · Active Now
📋 Priority 2 — Research & Long-Term
P2
📊

Underwriting Data Product

Sell structured, carrier-ready underwriting packages to brokers and carriers as a standalone data-as-a-service layer. Foundational to all higher-complexity paths.

Complexity: Medium
P2
🏛️

MGA / MGU

Form or acquire a Managing General Agency with delegated underwriting authority. Earn 30–35% commission on premium. Highest revenue ceiling of all options.

Complexity: High
P2
📋

Broker of Record

Become a licensed insurance broker acting as the client-facing relationship. Earn 15–20% retail commissions. Deepens customer stickiness but highest execution complexity.

Complexity: Very High
Analysis

SWOT by
Option

Strengths

Lowest friction entry — no license or capital required
Leverages existing customer base immediately
Preserves AppWork's SaaS identity
Creates tangible value for customers (better terms)

Weaknesses

AppWork captures limited economics — partner takes most of the insurance revenue
Dependent on partner's appetite and pricing decisions
Discount narrative is largely marketing, not guaranteed savings

Opportunities

Multiple parallel partnerships possible
Natural flywheel: better terms → more customers → more data → better underwriting
Gateway strategy before committing capital to Options 3 or 4

Threats

Leonardo247/Sertis already in market — first-mover advantage
No control if partner carrier tightens underwriting or exits
Replication risk: competitors can run the same playbook

Strengths

Clean per-claim fee economics ($1,000–$1,500/claim) — no premium exposure, no carrier capital requirements
AppWork already holds the exact data that makes claims resolution faster: maintenance records, inspection logs, incident reports, and work order histories
Claims Managers earn a % of payout — better AppWork data = better claim resolutions = higher earnings for the TPA partner. Direct financial alignment.
No insurance license required in many capacities — lower regulatory barrier than broker or MGA paths
Closes the full risk lifecycle: AppWork prevents claims AND helps resolve them

Weaknesses

Revenue is episodic (per-claim) rather than recurring — unpredictable cash flow vs. AppWork's SaaS model
Requires claims expertise, adjusting staff, and deep carrier integrations — entirely new capabilities
Revenue ceiling is modest at low claim volumes; meaningful revenue requires significant portfolio concentration
More research needed on full business model, licensing, and carrier relationship structure

Opportunities

Joe Tuck (Alliant) flagged Sedgwick intro; Gallagher Bassett coordinating now — partnership paths exist today
Subrogation advantage: AppWork's timestamps and inspection records can identify recoverable claims faster than any competitor
Combining TPA + MGA (Priority 2) = full ecosystem control: underwriting authority + claims authority at 28–35% gross commission

Threats

Sedgwick, Gallagher Bassett, and Crawford dominate with deep carrier integrations and volume scale
Potential conflict of interest: AppWork serves landlords while a TPA serves carriers — opposing interests in some claims
Standalone TPA without a prior insurance product creates a carrier relationship chicken-and-egg problem

Strengths

Highest alignment with AppWork's SaaS DNA — an extension of the product
No insurance license required
Scalable across any carrier, broker, or MGA
Solves a genuine, persistent underwriter pain point

Weaknesses

Revenue model unproven; pricing data products in insurance is complex
Carriers may expect data as part of submission, not as a paid product
AppWork currently missing some data carriers need (building metadata, lease terms)

Opportunities

AI-powered underwriting summaries — dramatic efficiency gains for carriers
Open source building data (ACRIS, etc.) can enrich AppWork's dataset automatically
Foundation that makes all Priority 2 paths easier and faster to execute

Threats

Carriers and brokers may build this capability in-house
Data privacy / sharing agreements require careful legal structuring
Value is only as good as client adoption across portfolios

Strengths

Highest revenue ceiling — 30–35% commission vs. 15–20% for retail
Data advantage creates genuine underwriting moat
Does not require unseating existing retail brokers
AppWork is rewarded financially when its software reduces risk

Weaknesses

Highest capital and operational complexity of all options
Carriers require $5–10M existing premium track record before engaging
Requires underwriters, actuaries, and compliance staff — new capabilities entirely

Opportunities

Acquisition of a real estate-focused broker solves the track record problem immediately
Trojan horse model: distribute through existing brokers rather than displacing them
At scale ($25M+ premium), this is a high-value recurring asset trading at 8–10x EBITDA

Threats

Highly competitive market — many carriers already write real estate
Carrier may pull program if loss ratios deteriorate
Acquisition target companies trade at 8–10x EBITDA — meaningful capital required

Strengths

Meaningful revenue: $500K annual premium = $75–100K in broker commission
Deep, verified property knowledge — genuinely superior to traditional brokers
Deepens customer relationship and increases platform stickiness

Weaknesses

Replacing an incumbent broker of record is among the hardest challenges in insurance
State-by-state licensing across all markets AppWork operates
Requires hiring licensed brokers with real estate insurance expertise
Introduces E&O liability exposure — new risk for AppWork

Opportunities

Acquisition of a succession-planning real estate broker provides instant book + licenses
Trojan horse: let existing brokers use AppWork data; capture economics via the MGA layer

Threats

Most capital-intensive path if pursued via acquisition
Displacing brokers risks damaging relationships with key industry allies
National brokers (Marsh, AON, Gallagher) have the same data-leverage argument and far more resources

5-Year Revenue
Curves by Option

Illustrative projections based on industry commission rates, estimated premium ramp-up, and market entry assumptions. Assumes AppWork begins each path at the stated phase.

Preferred Partner
Data Product
MGA / MGU
Claims Manager
Broker of Record
Open Items

Key Questions
to Resolve

Data Readiness

What does AppWork actually have?

  • What operational data does AppWork currently capture that is directly relevant to property insurance underwriting?
  • What is missing — building specs, lease terms, loss history, hold harmless agreements?
  • Is the 80/20 rule accurate: 80% of needed data already in the system, 20% to build?
  • Who owns the data — AppWork or its customers? What rights exist to aggregate and package it?
Scale & Premium

How close is AppWork to the entry threshold?

  • How many units are currently on AppWork's platform across all customers?
  • At ~$50–100/unit in annual premium, what does that translate to in aggregate insurable premium?
  • Carriers need $5–10M in existing premium to engage on an MGA program. Is AppWork at 50,000–200,000 units?
Capital Strategy

Can AppWork fund an acquisition path?

  • Does AppWork have capital for an acquisition? Real estate-focused brokers trade at 8–10x EBITDA.
  • A broker doing $10M in premium at 15% commission = $1.5M revenue. At 8x EBITDA, acquisition cost could be $5–10M+.
  • Are there private equity or strategic partners who could co-invest in an insurance subsidiary?
Competitive Timing

How urgent is the window?

  • Leonardo247/Sertis already has first-mover advantage in the preferred partner/MGA model. How much does timing matter?
  • Are the best carrier partners for a multifamily MGA still available, or are they committed elsewhere?
  • What is AppWork's existing customer broker landscape? Are there broker relationships that could be leveraged immediately?
Recommended Path

A Sequenced
Approach

1
0 – 12 Months

Data Product + Preferred Partner

Standardize AppWork's inspection and compliance data into a carrier-ready underwriting package. Establish one or more preferred partner relationships with carriers or MGAs. Generate early revenue via referral or revenue share. Build market credibility at low cost.

2
12 – 36 Months

MGA via Acquisition

Pursue an MGA structure via the acquisition of a real estate-focused broker with $10–20M in existing premium. Use the acquired book as the track record to attract carrier partners. Distribute through existing brokers (Trojan horse) rather than displacing them.

3
36+ Months

Evaluate Broker of Record

Once the MGA is established and generating revenue, evaluate whether the broker-of-record layer adds sufficient incremental value to justify the additional complexity and client relationship risk.

Resources

Downloads &
Reference Materials

AppWork Marketing Booklet 2026
Marketing Booklet · PDF
Download
This document contains confidential and proprietary information belonging exclusively to AppWork Technologies Inc. It is intended solely for the use of the individual or entity to whom it is addressed. Any review, dissemination, distribution, copying, or use of this information by persons or entities other than the intended recipient is strictly prohibited. If you have received this document in error, please notify the sender immediately and destroy all copies.