Insurance tech firm Sprout.ai secures $2.5m in additional seed funding

Sprouts.ai, which is an insurtech incubated in the Imperial College of London and is applying artificial intelligence to insurance claims, has reportedly raised $2.5 million in new seed funding. Amadeus Capital Partners is leading the funding round, along with the participation of Playfair Capital as well as Techstars.

Sprout.ai was founded in 2018 and has created software that is AI-based and assures that it enables various insurance claims to be managed and settled within a time period of 24 hours. It specially uses optical character recognition and even natural language processing to clearly understand all the unstructured data related to insurance claims.

It further combines them with real-time external data like geolocation, medication information, weather, business, to either automate or escalate these for a further human analysis.

The CEO and co-founder of Sprout.ai, Niels Thone stated that the company aims to help the insurers to be able to pay out more successful claims within a span of 24 hours. The average time for claim settlement in the U.K currently has been 25 days.

Such issues are mostly caused by the dearth of information in the beginning of the claims as well as various touchpoints throughout the journey. It usually ends up with two problems, that are high operational costs and bad customer experience.

Insurance firms are capable of plugging the existing systems into the Contextual AI solution of Sprouts.ai to remedy the situation. This provides a complete data capture at the very beginning of the claims process and further validates the incoming claims while also predicting the next mandatory step of the process.

The claims bulk is then sent straight via processing which leads to them being settled in record time. Claim handlers have to primarily focus only on the complex ones which would require a specialized set of skills.

 

Source Credit- https://usa-sciencenews.com/2020/04/16/sprout-ai-raises-2-5m-to-speed-up-insurance-claims/