# SoVael Insurance — Revenue Model

## Model Overview

SoVael Insurance has four revenue streams, delivered in phases:

1. Broker Intelligence SaaS
2. Gap Analysis one-off reports
3. Policy commission
4. Lead referral fees

The model targets profitability by Month 17 with modest initial capital.

## Stream 1: Broker Intelligence SaaS — £997/mo

White-label lead feed for FCA-regulated brokers. Leads are pre-qualified, pre-scored, and ready to quote based on signals from Legal, Cyber, Accounting, and Consulting arms.

| Year | Avg Customers | Revenue |
|------|-----------------|---------|
| Y1 | 10 | £60K |
| Y2 | 25 | £299K |
| Y3 | 55 | £658K |

Gross margin: 85–90%.

## Stream 2: Gap Analysis — £297 one-off

Automated coverage audit + market comparison. Serves as a low-friction entry product and converts 30–40% into brokerage leads.

| Year | Reports Sold | Revenue |
|------|--------------|---------|
| Y1 | 200 | £59K |
| Y2 | 500 | £148K |
| Y3 | 900 | £267K |

## Stream 3: Policy Commission

Policies placed directly or via AR partner. Blended commission rate 12.5% of gross written premium (GWP) at Phase 3 mix.

| Year | GWP Placed | Commission |
|------|------------|------------|
| Y1 | £500K | £62.5K |
| Y2 | £1.5M | £188K |
| Y3 | £3.0M | £375K |

Commission range expected: 10–20% depending on product (motor/home at lower end, commercial packages at higher end).

## Stream 4: Lead Referral Fees

Leads passed to partner brokers that SoVael does not place itself. Typical introducer fee: £25–£50 per qualified lead.

| Year | Qualified Leads | Revenue |
|------|-----------------|---------|
| Y1 | 400 | £12K |
| Y2 | 1,000 | £30K |
| Y3 | 2,000 | £60K |

## Consolidated Projections

| Metric | Y1 | Y2 | Y3 |
|--------|-----|-----|-------|
| Revenue | £134K | £664K | £1.36M |
| Estimated Net | (£46K) | £221K | £612K |

## Capital & Breakeven

- Initial capital required: ~£75K for compliance structure, product build, and marketing.
- Run-rate breakeven: **Month 17**.
- Risk-weighted (P50) revenue: Y1 £100K, Y2 £498K, Y3 £1.02M.

## Strategic Takeaway

SaaS and gap analysis fund the build; policy commission provides scale. The cross-arm signal network is the cost advantage — customer acquisition spend can be materially lower than traditional broker marketing because leads originate inside other Sovael workflows.

## Sources

- UK broker commission benchmarks (BIBA / industry data).
- Existing SoVael Insurance product pricing: gap analysis £297, broker intelligence £997/mo.
- Market sizing from SME gap and brokerage landscape research.