“it has elements that I find compelling and SaaS-like”
I agree. They have potential to be very “SaaSy”.
The way the CEO described it in the interview is that they use AI bots to handle signing up new people and for evaluating/approving/paying claims. This is infinitely scalable for minimal cost. They offer insurance for 50% less because they don’t have to pay salaries for tens of thousands of insurance agents and adjusters.
They sell a product that is used by almost every family unit in the US. It is a recurring revenue model.
Much of the risk is taken on by other “suppliers” of the actual insurance (“risk-light” similar to “asset-light”).
They will have multiple different types of products they can sell to the same customer (like “modules” for CRWD or DDOG).
The one limiting factor is that they cap their profit at a specific % and anything over that they commit to give to a charity of the client’s choosing. I think this will help them grow revenue faster, but will limit the upside on profit.
I also agree - it’s not a Saul stock (yet), but one to have on the radar. My prediction is for accelerating revenue growth, but only time will tell. For now I’ll enjoy what is probably a bit of a temporary short squeeze.