Matic and Floify partner to embed insurance in digital mortgage platforms

Matic Insurance Services, a digital insurtech platform based in Columbus, Ohio, has announced a strategic integration with Floify, a mortgage automation software subsidiary of Porch Group Inc. (NASDAQ: PRCH). The partnership enables lenders and brokers to embed home insurance options directly into Floify’s digital loan origination experience, a move intended to reduce closing times, increase borrower satisfaction, and simplify the insurance process within the housing transaction cycle.

The integration, revealed on June 11, 2025, aims to address longstanding friction in the mortgage process by embedding insurance quotes and policy selection into the same interface used for document collection, underwriting communications, and borrower updates. Matic, known for its embedded insurance marketplace spanning nearly 70 carriers, will now be available to Floify’s nationwide lender and broker network.

This collaboration marks another step in the expansion of embedded finance models within the U.S. real estate and lending industries, offering both workflow efficiency and new monetization opportunities to digital lending platforms.

Why Matic’s partnership with Floify is a pivotal move in mortgage tech

The mortgage industry has long struggled with inefficiencies tied to insurance procurement. Lenders frequently face delays when borrowers are required to secure coverage from external agencies late in the process. By integrating insurance into Floify’s automation platform, Matic helps close this gap, allowing borrowers to compare quotes and purchase home insurance without leaving the loan workflow.

Floify, headquartered in Boulder, Colorado, provides white-label mortgage automation software for originators, brokers, and banks. It allows users to build custom application portals, collect documentation, communicate with borrowers and agents, and track progress — all from a single interface. The new integration adds Matic’s insurance marketplace to this ecosystem, offering streamlined access to homeowner insurance products from national and regional carriers.

Sol Klein, Head of Customer Experience and Business Operations at Floify, explained that insurance has been a consistent bottleneck during mortgage closings. He stated that Matic’s platform offered a seamless, turnkey integration with a broad carrier network, making it the most viable partner for addressing this critical pain point.

What is Matic’s role in embedded insurtech distribution?

Founded in 2014, Matic has positioned itself as a leading enabler of embedded insurance in property-related transactions. Its API-first architecture allows for scalable integration across fintech, banking, and real estate platforms. Matic’s digital marketplace offers policy comparisons, underwriting, and binding services from nearly 70 insurance carriers across all 50 U.S. states.

According to internal metrics disclosed by Matic, its platform is currently integrated into more than 100 financial institutions, including five of the top 15 mortgage servicers and one top 10 global bank. Collectively, these partners account for approximately 20% of home loan volume in the United States.

CEO and Co-founder Ben Madick described the Floify partnership as part of Matic’s broader vision to embed insurance at every key point in the homeownership journey. He emphasized that rising insurance premiums and housing affordability challenges have made it more important than ever for borrowers to access transparent, competitive coverage options during the loan process.

What makes embedded insurance critical in loan closings

The rise of embedded finance — the integration of financial services into non-financial platforms — has reshaped consumer expectations around convenience and transparency. In mortgage technology, insurance is often the final hurdle before funding can occur. This late-stage requirement frequently leads to delays, compliance issues, and borrower frustration.

By embedding Matic’s capabilities directly into Floify’s platform, lenders can present borrowers with policy options at the appropriate point in the application process, while maintaining control and visibility over insurance milestones. This ensures that required coverage is in place without disrupting loan workflows or requiring borrowers to shop externally under time pressure.

Moreover, the integration offers lenders and brokers a chance to unlock new revenue streams through embedded commissions or referral fees — a value proposition that becomes increasingly relevant in tight-margin lending environments.

What are institutional and platform-level reactions to the deal?

Institutional response to embedded insurance models has generally been positive, especially among digital-first lending platforms and real estate technology firms seeking operational differentiation. Analysts tracking Porch Group’s broader strategy have noted that Floify plays a central role in Porch’s ambition to consolidate homeowner services under a single ecosystem.

This partnership is also consistent with Matic’s trajectory as a category-defining player in insurtech distribution. Although not publicly listed, Matic has built considerable market presence through strategic partnerships, most notably with Blend Labs, Mr. Cooper Group, and several regional banks.

Market observers point to the deal as another signal that embedded finance is becoming the default expectation in real estate fintech, rather than an optional enhancement.

How does Floify benefit from integrating Matic’s platform?

Floify, acquired by Porch Group in 2020, functions as the mortgage origination and automation layer within Porch’s vertically integrated home services platform. Porch Group’s broader portfolio spans home inspections, contractor services, moving logistics, and warranty administration — all aimed at reducing complexity in the homeownership lifecycle.

By incorporating Matic’s embedded insurance tool, Floify not only improves its mortgage automation value proposition but also aligns with Porch Group’s goal of monetizing ancillary services around the transaction.

Porch Group has faced investor scrutiny in past quarters for profitability concerns, and partnerships like this may offer margin-enhancing opportunities through non-traditional financial services embedded within existing platforms.

How is embedded insurance evolving across the mortgage industry?

Matic’s deal with Floify signals broader momentum in the embedded insurance space, where integration with digital mortgage platforms, neobanks, and proptech marketplaces is accelerating. While other insurtech players like Cover Genius and Boost are also exploring API-based distribution, Matic’s positioning within the homeownership funnel gives it a defensible niche.

This partnership also raises the bar for mortgage software providers, many of whom may now be compelled to offer insurance functionality either natively or through third-party integrations to remain competitive. Analysts expect more acquisitions or white-label partnerships to emerge over the next 12–18 months, as platform providers seek to offer end-to-end experiences.

For Matic, the integration strengthens its data advantage. By being embedded early in the loan lifecycle, the insurtech firm gains access to property, borrower, and lender data that can improve quote accuracy, reduce underwriting time, and further personalize policy offers.

What is the future outlook for Matic and Floify after integration?

With insurance now embedded in Floify’s platform, the next phase will involve scaling adoption among originators and brokers, optimizing the user experience, and quantifying impacts on loan cycle time and conversion rates. Internal pilots suggest improved borrower satisfaction and reduced closing delays, though comprehensive data will emerge in the next few quarters.

Matic is expected to continue forming integrations with complementary platforms across real estate and financial services, reinforcing its goal of becoming the default insurance infrastructure for the homeownership economy. Meanwhile, Floify may use this success to evaluate additional embedded service offerings, potentially expanding into moving insurance, title services, or post-close warranties in alignment with Porch Group’s roadmap.

Both firms stand to benefit from rising lender demand for modular, white-labeled services that enhance platform utility without expanding compliance burden or tech overhead.