May 11, 2022
CEO Testimonial – Beam Benefits – Alex Frommeyer
In this video, Alex Frommeyer, Founder and CEO of Beam Benefits, discusses how Georgian and Beam’s R&D teams worked together to build five additional production models that help Beam predict risk as an insurance provider.
My name is Alex Frommeyer. I am the Founder and CEO of Beam Dental, and we are a digital-first employee benefits provider focused on delivering the world’s best dental insurance to employers of all sizes.
Why did you choose to partner with Georgian?
The reason we wanted to partner with Georgian was really twofold.
The first is the people. And the second is the process. We were really excited to meet the Georgian team in a really organic way. And we didn’t just meet Tyson – who ended up leading the round and joining the board and has been on the board for two or three years now – but also a large number of other folks from the Georgian team across all parts of the Georgian team.
And that really got us excited about what the partnership could look like beyond just the investment itself and the help and guidance at the board level.
How did you engage with Georgian’s R&D team?
I’ve been incredibly impressed with how both the Georgian R&D team and my team at Beam have taken advantage of the opportunity to dig in and solve problems that I wasn’t expecting we would tackle together.
We started with our actuarial team. As an insurance provider, we really wanted to understand from the Georgian team more about how to build predictive models. The Georgian team, I don’t think had much experience with actuarial work previously, but used their first principles work in the data science space and applied those principles, with the help of our actuaries, to go in deep on a variety of predictive modeling exercises.
And we have tons of examples now, three years later, of live products and specific ROI generated from those efforts.
What were the outcomes of the R&D engagements?
One metric that I think has really resonated with us is where we started and where we’re at today in the number of models we use live in production for predicting risk as an insurance provider.
When we first met Georgian, we had one production model, one model that was in force that we were using for all the purposes of our ability to identify and manage risk as a business. Today, we have six live models that stretch across multiple different components of the risk process and the risk management process and Georgian helped us build essentially the other five that are live today.
We’ve also reduced the time to deploy new models and new iterations of the model by about two- thirds. So not only have we launched live risk management models together, we’ve done it in less than half the time that we would previously.
Overall, what was your impression of Georgian’s value-add?
When I first met Georgian, I was excited at a high level about the very existence of the R&D team.
And that was for sure a driver in our excitement to partner with Georgian. With that said, I’m skeptical. Why? Because in the industry, there’s lots of promises made and maybe less than all of those promises kept in the value-add nature, despite best intentions. I think it’s very natural because we’re all leading busy lives and it’s very difficult to build and sustain a true value-add relationship. The sheer amount of work we’ve been able to do together while still finding more and more meat on the bone to tackle in the future has really enhanced my perception of the value the R&D team can bring.
And it’s typically the first thing I bring up when I do a reference call for an entrepreneur considering Georgian as an investing partner.
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