How AlphaPRO Makes Nonprofit Insurance Work Better
AlphaPRO rethinks insurance brokerage services in a way that is easy to understand and familiar to use. While the economics behind the model are different, the day-to-day nonprofit insurance experience stays the same, giving organizations a clearer, more aligned way to benefit from the insurance they already purchase.
Step 1 – Business as UsualYour Insurance Process Stays the Same
For the nonprofit, the insurance placement and administration process does not change. Policies, carriers, coverage structures, and day-to-day workflows continue as they normally would. Operationally, AlphaPRO is no different than other insurance brokerages; however, the economics behind our product and service delivery are unique and disruptive, creating value through equity participation.
Step 2 – Behind the ScenesHow Insurance Brokers Make Money
Insurance brokerages earn money through commissions or fees that are tied to the premium they place on behalf of their clients. AlphaPRO operates in the same manner. The only difference is AlphaPRO clients are also equity partners and therefore entitled to share in the brokerage profits generated by their premium payments.
Traditional structure
Nonprofit pays premium
Broker places coverage
Broker retains commission
Nonprofit receives coverage only
Step 3 – ParticipationA Model That Creates and Shares Value
The secret sauce that fuels the AlphaPRO model is client equity participation, the legal structure of AlphaPRO. Every client is also an owner and subscribes to the same Operating Agreement. Brokerage profit distributions are prorated and allocated according to the size of individual participation. Establishing the partnership and profit distribution functions occur at the nonprofit leadership level and outside the view of the administrative staff. The functionality and administrative measures taken by staff remain the same.
AlphaPRO structure
Nonprofit pays premium
Broker places coverage
Value generated through brokerage
Participating nonprofit shares in the outcome
A Simple Example of How Participation Works
Ownership has its privileges. Every AlphaPRO client is granted one non-voting equity unit. Profits are distributed in the first quarter of the year reflecting AlphaPRO’s results for the preceding calendar year. Profits are prorated according to each client’s individual premium contribution. The Unit of ownership is in force and valid as long as the nonprofit is a client of AlphaPRO.
Traditional Model
Annual premium: $X
Brokerage revenue generated: $Y
Nonprofit participation: $0
AlphaPRO Model
Annual premium: $X
Brokerage revenue generated: $Y
Nonprofit participation: portion of $Y
Is This for My Organization?See Whether AlphaPRO IS the Right Fit
AlphaPRO works across all nonprofits of all sizes, but how much value depend on factors like insurance spend, structure, and long-term goals. If you are considering the model, the next step is to see how it would work for your organization.
501(c) DroP PODCASTTurning Your Insurance Bill Into Unrestricted Revenue
Take the Next Step
If you want to explore AlphaPRO’s insurance brokerage services in more detail, we’re here to help. Reach out to start the conversation, ask questions, or discuss whether this model could make sense for your organization.