TheGuarantors is an American startup offering lease guarantees to prospective tenants in New York. Founded in 2014, it covers – at the tenant’s expense – the risk to landlords of a tenant defaulting on a rent payment.
The policy (currently underwritten by The Hanover, parent company of Chaucer) is for tenants who fail to meet financial requirements for apartments and don’t have a guarantor. The target market includes students, the unemployed and foreign nationals. The premium is generally 5-7% of the annual rent (7-10% for non-US residents).
TheGuarantors is very early stage and raised a seed round at an undisclosed sum six months ago. They’re currently building their platform, due to launch in beta this month.
We like the concept – a simple solution to a no doubt common problem. It feels like the pivotal question might be what proportion of their applicants have an acceptable credit rating (TheGuarantors currently uses FICO scores, a common US creditor score). We wonder whether this could limit the target market – or perhaps there’s an opportunity to partner with one of the new generation “thin file” credit scoring companies like Aire or FriendlyScore.
Chris leads engagements across strategy and transformation, focusing most of his time on global reinsurance and UK & Ireland retail insurance.
Chris started his career at Munich Re where he was a D&O underwriter. During this time, he gained his ACII qualification. He then moved into consulting, where he has spent 20 years advising (re)insurance management teams around the world on topics including strategy development, operating model redesign, governance optimisation, underwriting transformation and innovation. Chris lives in London and spends a lot of his time with clients in Bermuda and Continental Europe.
Chris frequently authors Oxbow Partners papers and articles. He was the lead author on our InsurTech Impact 25 series. He is a dual British and Austrian citizen and speaks fluent German.