At InsurTech NY, Clinton Houck from Fair explains how the company is addressing a common misunderstanding in auto insurance.
Houck says many consumers assume their auto insurance covers all types of vehicle issues. In reality, standard policies typically focus on accident-related damage, such as collision or comprehensive cover. Mechanical breakdowns, such as engine failure or faulty components, are often excluded.
Fair’s role is to fill that gap.
Houck explains that the company provides mechanical breakdown coverage, helping to cover repairs when a vehicle fails outside of an accident. This allows insurers, brokers, and carriers to offer a more complete solution to customers, rather than leaving them exposed to unexpected repair costs.
He adds that this type of coverage complements existing policies rather than replacing them.
By working alongside traditional auto insurance, Fair enables a more comprehensive approach to vehicle protection, which Houck believes aligns more closely with what consumers expect.
Houck also highlights the importance of distribution and partnerships in delivering these solutions.
At InsurTech NY, he says the focus is on meeting partners who can offer Fair’s products, as well as connecting with organisations that serve the same end customer. The event provides access to a wide range of stakeholders, including brokers, carriers, and technology providers, all in one place.
Looking at broader trends, Houck points to the growth of MGAs as a significant shift in the market.
He explains that MGAs are increasingly bringing specialised expertise to specific segments, such as commercial risk or high-risk auto. These organisations are able to underwrite and price risks in ways that larger carriers may not, while still relying on those carriers for capacity.
According to Houck, this is leading to the creation of more tailored and niche insurance programmes.
Overall, his view is that the market is becoming more flexible and specialised, with new models emerging to address gaps that traditional insurance has not fully covered.
