Kevin Tawil

Now, we get the underwriting profits immediately because we'll take that out.

But then it opens up the world for us to better manage the claims distribution process and ultimately the repair of those funds.

So step one.

is to get control of the entire premium and take over the underwriting profits.

Step two was become the logistics provider.

So instead of having a third party, FedEx or EPS, and not just delivery, but manage the warehouses and all that, we created our own.

We started our own warehouse.

And this way, we would ensure that the customer got served, if not next day, the day after, which was an important customer service metric.

But

We also were able to do that a lot less expensively than those third-party logistics providers.

And then finally, the final step of vertical integration, Will, was the repair of cell phones.

So every time, probably a majority of the time, a phone had a problem, it was damaged and not lost or stolen.

So there's still value in those phones.

And we started the process of getting those old devices back, refurbishing them, making them like new.

We would always replace the plastics on the outside so you're never touching old stuff, but we'd reuse the internal parts.

And we can in turn save a lot of money in that process while getting the customer into the same handset that they had damaged originally.

So those three steps led us to control the customer experience, keep the price down for consumers, and increase the profitability of the program for our carrier partners.

That took about three or four years.

Step one took about a year.

Getting into the distribution business started about a year after we were in it, and that just scaled.