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Raised by a businessman father and an opera singer mother, David McFarland He learned early on the art of mixing creativity and pragmatism. He initially studied history, but one philosophy course sparked his love for mathematics.
With his newfound passion for mathematics, McFarland switched to actuarial science, a field where complex numbers and risk meet in the real world. He had no concept that this would lay the foundation for his future as a CEO who would bring a fresh approach to the traditional world of insurance.
In this episode Founder CEOwe meet the founder and CEO of the company Coterie insurance learn the way his combination of daring vision and deep understanding of information led him to create one of the most revolutionary firms in the insurance space.
An extraordinary entrepreneur
Before entering the insurance industry, McFarland gained experience in each legacy firms and start-ups. It was during his time at the National Council for Compensation Insurance (NCCI) that he noticed a glaring gap: small businesses were often underinsured or underinsured because it was too expensive for agents and firms to service them.
This awareness gave birth to an idea. Can data and technology make the underwriting process more efficient and accessible for these firms? In 2018, with a family and children at home, McFarland took the plunge and founded Coterie Insurance to solve this exact problem. Today, Coterie uses cutting-edge technology to reduce the time it takes to secure insurance from hours to just minutes.
Vision powered by artificial intelligence
As Coterie grew, McFarland’s vision expanded to include artificial intelligence. He sees artificial intelligence as a breakthrough not only for his company, but for the entire insurance industry. While some fear job displacement due to artificial intelligence, McFarland believes it would lead to a latest era of innovation. He compares it to the advent of the mix harvester, which modified agriculture by streamlining processes, thus opening up latest industries and opportunities.
“Artificial intelligence will replace many mundane, repetitive tasks, allowing us to focus on higher-value work,” McFarland says. For insurers and actuaries, they see the future as collaboration between humans and artificial intelligence, much like today’s top chess players who work with computers to outperform even the most advanced software.
Transition from founder to CEO
The transition from founder to CEO is tough. Many entrepreneurs face difficulties when their firms grow from a poor initial stage. For McFarland, it was about finding the right balance between innovation and commercialization. He emphasizes that once product-market fit is achieved, it is time to shift gears and focus on scaling in a financially sustainable manner.
“I realized that some members of my team were better suited to early-stage guerrilla warfare, while others were better at scaling operations,” McFarland explains. Making difficult decisions about team composition is a part of a leader’s evolution, something McFarland has learned through experience.
A vibrant future for Coterie
Today, Coterie is one of the fastest-growing firms in its area of interest, providing small business owners with the insurance they need quickly and easily. McFarland sees a huge opportunity for growth considering 50% of small businesses are underinsured. He envisions a future where small business owners now not have to worry about financial loss due to unexpected events.