ClaimSorted, an Insurtech startup, has raised $3 million to enhance insurance claim processing.
- The funding round, led by Firstminute Capital, included contributions from YCombinator and other prominent investors.
- Founders created ClaimSorted after facing inefficiencies in third-party claims processing in their previous business.
- ClaimSorted’s AI-enhanced system offers insurers a faster, less error-prone claims processing experience across the US, UK, and Europe.
- Industry experts like Harriet Parkinson and Jim Hageman add significant expertise to the ClaimSorted team.
ClaimSorted, an innovative player in the Insurtech sector, has successfully secured $3 million in pre-seed funding to streamline insurance claims processing. The recent funding round, which was oversubscribed, was led by Firstminute Capital and saw participation from well-known investors such as YCombinator, Precursor Ventures, and Transpose. This financial backing also attracted attention from leading figures in the InsurTech industry, underscoring the startup’s potential to transform traditional insurance procedures.
The inception of ClaimSorted emerged from the founders’ own disillusionment with existing claims processing methods at their former insurance company. They encountered persistent customer complaints and shocking inefficiencies while relying on third-party claims agencies (TPAs). A striking example involved a customer who faced a 30-day delay in payment, only to be told dismissively by the TPA, “It’s ONLY been 30 days—your customer can wait.” Such incidents highlighted a systemic problem of reliance on TPAs that often resulted in significant errors, with nearly two out of ten payouts deemed incorrect and leading to increased insurance costs for consumers.
ClaimSorted approaches claims processing with a distinctive blend of automation and human expertise. Their system employs artificial intelligence to expedite routine processes while preserving the critical human touch for complex cases. This dual strategy not only accelerates the claims procedure but substantially reduces the margin of error, offering both insurers and their clients a markedly improved experience.
Insurers globally spend more than $200 billion annually on claims agencies, frequently expressing dissatisfaction with the services rendered. In contrast, ClaimSorted offers a compelling alternative, having already established operations in the US, UK, and European markets. The enterprise functions across three distinct insurance verticals, delivering claim resolutions that are three to ten times quicker than traditional methodologies and achieving a more than 20% improvement in payout accuracy. This proficiency extends to providing real-time insights to underwriting teams, enhancing their decision-making capabilities.
Central to ClaimSorted’s strategy is its assembly of a robust leadership team, which leverages vast industry knowledge to drive its mission. Harriet Parkinson, previously COO of Revolut Insurance, brings an impressive track record of servicing 45 million insurance clients. Likewise, “AI Jim” Hageman, renowned for his tenure as Chief Claims Officer at Lemonade, managed claims for a substantial policyholder base of 2 million. Their collective expertise fortifies ClaimSorted’s mission to reshape the insurance landscape.
Pavel Gertsberg, CEO and Co-founder of ClaimSorted, stated, “Too many insurers are stuck with claims partners who just don’t care enough about their customers. We experienced this frustration firsthand. With ClaimSorted, we’re building a solution that puts their customers at the center of the claims experience.” Simultaneously, Sam Endacott of Firstminute Capital commented, “ClaimSorted is bringing modern software to a major segment of the insurance industry that is yet to undergo significant digital transformation and is dominated by large services companies.”
ClaimSorted’s innovative approach has the potential to redefine the landscape of insurance claims processing with greater speed and accuracy.
