Economical confirms 96% growth for direct company Sonnet
Published: August 14, 2019
Updated: September 1, 2019
Author: Luke Jones
CATEGORY: Industry Trends
Launched three years ago by Economical Insurance, Sonnet is a digital direct insurance company that highlighted how insurance companies are increasingly pursuing a non-broker model. While the rush to direct has not materialized over those two years, Economical says Sonnet has been a success and doubled in size.
“We are getting a broader base of customers. It’s not just millennials,” Rowan Saunders, president and CEO of Ont.-based Economical, told Canadian Underwriter.
Earlier this month, the company reported Sonnet generated gross written premiums of $50.6 million over the second quarter (ending June 30). The revenue represented a 96.3% growth over the period compared to the same frame in 2018.
“Clearly, Canadians are resonating with Sonnet, and we have been very focused on scaling the business but doing so profitably,” Saunders said in an interview. Overall, Economical Insurance generated gross written premiums of $659.2 million through the combination of Sonnet and its traditional broker network.
The company says Sonnet has taken 7% of overall premiums written by Economical over the first six months of 2019. On the assumption that Sonnet can turn its $50 million revenue into a quarterly average, that would be $200 million in revenue each year.