A company looking to transform insurance claims from a chronic pain point into a competitive advantage has raised £10 million in one of the largest InsurTech seed rounds on record.
The round for ClaimSorted was led by Atomico, with participation from Eurazeo, Y Combinator, firstminute capital, Start Ventures Capital and a network of insurance veterans.
The company was born out of firsthand frustration. While running their own insurance business, founders Pavel Gertsberg and German Mikulski relied on outsourced claims providers – third-party administrators (TPAs) – to process claims.
They kept running into common issues, including claims that should take a week dragging on for months, inconsistent service hurt customer retention and poor claims management by TPAs eroded profitability.
“Ask anyone in insurance where the weakest link is, and most will point to claims TPAs,” said Gertsberg, who is now CEO of ClaimSorted.
“We saw the claims process being painfully slow. Mistakes made by TPAs that should’ve been caught early ended up eating our entire profit margin.
“So, we decided to build something better.
“By combining a market leading claims team with a suite of embedded AI agents, we’re able to provide policyholders with a 5-star experience during the claims process, settle claims 3 times faster than traditional TPAs while helping insurance companies save millions.”
The London and New York-headquartered firm spent a year assembling a team with experience from insurers including Hiscox, Lemonade, AXA, Hartford and Liberty Mutual.
That team was merged with the startup’s proprietary AI-enabled claims platform, resulting in a ‘next-generation TPA’: Claims TPA 2.0.
Andreas Helbig, partner at Atomico, added: “Insurers don’t want yet another ‘AI claims platform’ with an ambiguous value proposition.
“They want a tangible end-to-end service that takes the headache out of claims, supports their customers when they need it most, and protects their bottom line.
“And it’s working: Through faster and better claims resolution, ClaimSorted is increasing policyholder NPS by +10, while delivering significant reduction in cost per claim. It’s rare that we see such a clear and strong ROI.”
Since launch, ClaimSorted has partnered with more than 20 insurers across the US, UK and EU, serving tens of thousands of policyholders.
The new funding will accelerate product development, expand operations across key global markets and scale partnerships with insurers seeking a modern alternative to legacy TPAs.