2025 ASC model

Notes:
Dan's system back end
considerations

1. Share of profit from underwriting, based on book underwriting loss ratio
2. mandatory date for purchase by parent company,
3. Established purchase price, i.e., 3 to 5 times gross revenue, or 2 times booked premium, or something times net profit after loss ratio?
4. parent company has right of first refusal if sale is prior to mandatory date
5. underwriting model is agent produced model. Rating system must support the ability to have many multiple price points
6. Small contract is part of the program
7. Most feed into back end system for accounting and possibly for renewal
8. Seed money to build? Should be a requirement, no one works for free. Set purchase price in windows: i.e., system complete, marketing complete, production started. 1 year. etc.
9. Company controls product offering on first right of refusal, other partners allowed but can be supplanted at company request
10. after live, company can buy at 2 times seed money investment in first 12 months.
11. after 12 months, purchase is based on production or other factor, predicted growth?
12. Build is a direct model in states with an a corporate reps and in states without coporate rep, it is a direct model and an subagency model. Corporate reps not needed, but can spin off sub agents when corporate reps established in a specific state.
    Time line:
    Sept: accept appointment
    Sept: USA partner meeting
    Oct: Underwriting meeting
    Nov: IT meeting
    Dec: Corporate level meeting
    Jan. 2025: Seed money request $75K
    Feb: System build
    April: IT/Underwriting presentation
    May: System refinement
    June: Underwriting design, completion
    July-December: Seed Money request $75K Bond loading
    January 2026: Underwriting, IT, Corp live review
    Feb: Production open
    March-July: Marketing blitz, third round of seed money $75K
    What is corp production, profit expectation?
    What is agency production, profit expectation?