Swigart, the former CMO for Esurance, decided to take on the worker’s compensation insurance sector with an eye toward helping small-business owners who want to be able to purchase the coverage digitally.

“Small businesses are overcharged in worker’s comp relative to their risk profile,” Swigart said in an interview after announcing the company at Insuretech Connect in Las Vegas.

“The core of our customer base will be those that pay less than $5,000 per year for workers comp – that’s most small offices up to about 15 employees.”

Through a partnership with Valen Analytics, Pie will be able to more closely match small businesses’ premium to their actual risk, Swigart explains.

He says that data shows small businesses have fewer worker’s compensation claims when monetized for the size of their payroll, but owners are unable to shop around too much because of the labor-intensive nature of getting the coverage.

“Small businesses have meaningfully lower claims frequency” that emerges from Valen’s data, he says.

“We think we can deliver them an easy, direct experience. There is essentially no direct distribution for small businesses in commercial lines, but even less so for worker’s comp.”