Sep 234 min read

Scout InsurTech Interview with Faroe

Faroe is a real-time data and fund management platform for the insurance industry. It seeks to give carriers, MGAs and other stakeholders instant access to policy and premium data, ensuring full transparency on sales, earnings and fund transfers. Michael Fiedel sat with CEO, Michelle Bothe, to learn more about how Faroe is impacting the industry.

What is Faroe’s client focus?

“Faroe focuses on carriers with multiple MGAs and MGUs, offering each stakeholder a customized real-time dashboard with relevant data. Carriers see all their programs, while each program only sees its own data. When both the carrier and program opt in, they’re on the same page, ensuring alignment and transparency.”

What does your product do?

“Faroe provides carriers with real-time visibility into policy and premium data. Traditionally, carriers rely on program businesses to submit a bordereau at month-end. This means if a policy is sold on September 3rd, the carrier may not find out until mid-October and might not receive payment until the end of the month. With Faroe, carriers no longer wait for month-end reconciliations. They can see every policy sale as it happens, see who sold it, see how it sold and track real-time fund flows. Anyone subscribed to the Faroe ledger has instant access to their data in real time.”

How much capital have you raised?

“We're bootstrapped.”

Was the company born from within or outside the industry?

“We're insurance insiders. The entire team has solely worked in insurance.”

What growth metrics have you accomplished over the last 12 months?

“Over the past 12 months, we’ve successfully built and scaled our product, expanding to new clients and increasing platform adoption across the insurance industry. We are actively working with several carriers to eliminate the bordereau process, helping them streamline operations and gain real-time access to policy and premium data. Our focus on solving real industry challenges has driven significant growth and impact.”

Within your domain, what is the current challenge that the industry is facing?

“The insurance industry faces significant challenges in reconciling policy and premium data across multiple systems. Carriers often have to manually match paid versus written bordereaux, which is time-consuming and labor-intensive for data teams. Additionally, MGUs use disparate tools — for policy management, payments, billing, accounting and premium trust accounts — that don’t communicate effectively in real time. This lack of synchronization leads to inefficiencies and delays in accessing accurate data. Faroe addresses these challenges by providing a unified, real-time platform that integrates all these systems, allowing carriers and MGUs to operate seamlessly and stay aligned with their data in real time.”

How does Faroe take a unique approach to providing value?

“Faroe’s unique value comes from its integration with key sources of truth, such as payment processors and policy administration systems. By pulling real-time data directly from these systems, Faroe creates a unified ledger that serves as the single source of truth for all stakeholders—carriers, MGUs and program businesses. This eliminates the need for manual bordereaux submissions and month-end reconciliations.

Faroe's ledger provides instant access to policy and premium data, ensuring complete transparency and accuracy and allowing all parties to see exactly what’s happening with policies and funds as they occur.

For carriers, this means they gain immediate visibility into risk data, know exactly what they are earning in real time and no longer need to dedicate manual effort to ingesting and processing the bordereau. Faroe enables carriers to operate more efficiently, focusing on strategy rather than back-office reconciliation.”

What inspired the team to start the company?

“Frankly, I kept banging my head against the wall. I am a consultant by trade, and at this point, I've worked with 40 different insurtech companies. I kept seeing the same problem over and over again. The individual solutions were connecting the X tool to the Y tool, but it was still a very one-way communication. The reconciliation was happening very reactively. In addition to that, there was nothing in place that would solve the problem of servicing the policy at scale.

Faroe was born out of sheer frustration at the lack of tools. I don't think this should have to exist, but I think it should exist. I have a lot of respect for policy-admin system companies. They do a lot of the legwork, but there's no continuity. It's like they think of the master of their domain in terms of rating, quoting policy, life cycle, data care reporting form, segment or mention generation. That being said, if you ask an insurance company what they care about, they care about the lineage into payments.

I'm always going to be in multiple systems regardless. That hasn't been solved for in the industry on a wider scale. So, I raised my hand, rolled up my sleeves and got to work with the team.”

Can you share any goals for the next 12 months?

“Our primary goal for the next 12 months is to continue eliminating the bordereau process, creating a seamless experience for carriers and MGUs. We aim to solve real, day-to-day challenges faced by data teams and professionals in the insurance industry by delivering a platform that streamlines operations, enhances transparency and reduces manual effort. Faroe is focused on making a tangible impact by providing solutions that address inefficiencies, allowing teams to focus on higher-value tasks.”