The LOOP Effect: How This Black Innovator Is Making Car Insurance Fair And Accessible
John Henry, a 31-year-old Dominican-American entrepreneur, is revolutionizing the auto insurance market with his innovative company, LOOP.
The B Corp car insurance firm uses predictive models and real-time driving data to create more equitable rates, particularly for underserved communities.
LOOP
Established in 2020, LOOP has made remarkable strides in a short period.
By 2023, the company boasted over 10,000 members and reported $26.7 million in Direct Written Premiums, reflecting a staggering 230% growth yearly.
This success has been marked by over $30 million in venture capital from notable investors like Foundry Group, 01 Advisors, Concrete Rose, and others.
“Everyday Americans are feeling economy at the pump, at the grocery store, in their rent bill, and especially in their car insurance bills which rose at an average of 24% last year nation-wide,” Henry stated in a press release shared with POCIT.
“This is far from a “sexy” business – but it’s exactly why we like it. The fundamentals get overlooked easily in the AI-era… but if we can’t pay our bills comfortably, then we get priced out of the innovation age.”
Henry’s LOOP Journey
Henry’s motivation for founding LOOP stems from a deep understanding of everyday Americans’ economic pressures.
LOOP’s inception was inspired by the idea that every community deserves an insurance company tailored to its specific needs.
“We exist because we need to exist,” Henry stated. “Every community seemed to have their own insurance company, so we thought: who is building an insurance company for our community?”
The traditional auto insurance market often charges higher rates based on non-driving-related factors like gender, job title, marital status, and credit score. These criteria disproportionately affect vulnerable communities.
LOOP challenges this system by focusing on how and where people drive to determine rates, ensuring fairness and equity.
“Drive Good”
As a B-Corp, LOOP goes beyond profit-making. It prioritizes people, offering respectful and dignified customer service and contributing positively to communities affected by systemic injustice.
This approach is encapsulated in LOOP’s motto, “Drive Good,” reflecting their commitment to social responsibility and fair practices.
LOOP, currently operational in Texas, plans to expand to 3-5 states in the next 18 months.
This expansion positions LOOP as a leader in providing equitable and affordable insurance based on actual driving behavior rather than biased and unrelated criteria.
