INSURANCE

Managing partnerships Perhaps one of the most defining strategies an insurtech can make , regards the partnerships it forms across the ecosystem . Forming a long-term , reciprocal relationship with another service provider can bring plentiful benefits and help that insurtech to scale at speed . However , like all relationships , a number of legal and workable strategies must be put into place to ensure the continuation of a healthy and productive collaboration .

Rachel Hillier of Capital Law is an experienced regulatory lawyer and leads the Financial Services team explains , “ Honest and frank conversations about these matters at an early stage are vital . When it comes to recording each partnership in writing , the devil really is in the details . Will an investor be entitled to have a director on the board ? How often does that director expect to attend meetings ? What decisions of the company will require investor consent ? For delegated authority , there will be

TIM MCKENZIE PRECISELY

similar details in the delegated authority agreement ( DA ).”

She adds , “ The parameters of that authority must be carefully negotiated and drafted into the agreement . Whilst the extent of that authority is important , exit and reporting provisions must be considered . Intellectual property and confidentiality clauses could all also be points of friction if not discussed and written into the DA at the beginning of the partnership .” insurtechdigital . com 49