Lyle Donan, a seasoned entrepreneur and visionary in the fields of InsurTech and PropTech. With a track record of founding and co-founding multiple businesses dedicated to revolutionizing real estate and property insurance workflows, Lyle brings a wealth of expertise to the table.
As the former CEO of Donan Solutions and a veteran with over two decades of experience in forensic investigation and executive leadership, he is committed to driving growth, fostering dynamic leadership teams, and delivering exceptional results for stakeholders. Currently serving as Chairman of the Source7 Board of Directors and holding advisory roles in several innovative companies, including Sureit, EcoClaim, Plnar, and RoofMarketplace, Lyle continues to shape the landscape of property and casualty insurance, real estate, and related industries through his strategic insights and entrepreneurial spirit. Join us as we delve into Lyle’s journey, his invaluable contributions to the InsurTech and PropTech sectors, and his vision for the future of these dynamic industries.
Episode Highlights Here:
Brett:
Let’s dive right into the topic at hand now, which is building early stage insurer tech and prop tech empire. So Lyle, what is the number one secret to doing just that?
Lyle:
Well, I think the biggest secret for this and my underlying thesis at room and pillar is that when I study the property insurance industry, and then I take a step back, and I study the real estate industry, it is shockingly coincidental that you have many parallel workflows. So for example, in property insurance, if I’m going to look at selling an insurance policy to a property, I want to understand everything about that property so that I can understand and quantify its risk, which then in turn, is a binary decision, do I want this customer yes or no, based upon the risk of that at risk of that asset? And then based upon that risk, it will help me understand well, how much should I charge in premium for an insurance policy for this? Very conventional insurance workflows? On the real estate side, if you are a owner and operator of real estate, and you’re considering buying another asset, you’re doing much of the same thing? Hey, what is what’s the condition of the roof? What’s the flood risk of this property? What’s the fire risk of this property? Is it sprinkled yes or no? What’s the condition of the HVAC, and the plumbing? All these are just diligence workflows that are eerily similar and consistent to the exact same workflows that are happening over in property insurance. The same is true for considering risk management, hey, now I already own this building, or now I already insure this building, I care about the exact same thing, which is, I don’t want to have a claim, I don’t want my building to flood or catch on fire or something else. So if you’re a good owner, and a good operator of real estate, you’re constantly doing things to manage the risk and optimize the value of that investment for you. And insurance companies doing the exact same thing. They’re hoping that you avoid a claim, they don’t want you to file a claim. So a good insurance company wants to work with you to reduce the risks of the things that are inside your real estate. Okay, here’s the thesis, here’s the AHA, it is Wait a minute, if they’re both doing the exact same thing, then what is the best of breed of solution that’s happening over in real estate? And can I sell that? Can I introduce that solution over to an insurance audience and find immediate application immediate growth and an increase in significant increase of the total addressable market? That’s a really interesting opportunity. The same is true on the other side. One of the things that people that really don’t know, property insurance fail to understand is that most property insurance companies don’t make very high margins. That’s the exception, not the rule. The rule is these companies make incredibly low margins. So if they’re making very low margins, then for sure, the products, the services, the solutions, aka the vendors that they rely on, to execute their businesses have to be super fast, super accurate, very efficient, otherwise they can’t afford it. Okay, well, if I find the best technology, the best solution, the best vendor, that’s solving a really fundamental problem in insurance or insurance, tech InsurTech then my inherent question is can I take that business and introduce that business to real estate audiences and immediately find significant value in that diversity diversification of the of the addressable market?
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About Lyle Donan
Lyle Donan is a serial entrepreneur that has founded and co-founded several businesses across InsurTech and PropTech aimed at investigating damage, understanding risk, and innovating real estate and property insurance workflows across North America. As the prior CEO and 20+ year veteran of Donan Solutions (the parent company behind Donan Engineering), he leverages decades of forensic investigation experience and executive leadership experience to help companies accelerate growth, build incendiary leadership teams, and attract customers to deliver exceptional outcomes for all stakeholders.
Through Room & Pillar, he is an active entrepreneur, investor and advisor to several InsurTech and PropTech companies involved in the sciences of residential and commercial property across P&C, Real Estate, and related industries. He serves as Chairman on the Source7 Board of Directors, as a Board Observer with Sureit, as a Board Member of EcoClaim, as a Board Observer of Plnar, and as a Board Observer of RoofMarketplace.
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