Sprout.ai, an “AI-led insurance claims automation company”, has successfully secured an investment of £5.4m in a recent investment round.
Spearheading this round were notable venture capital investors Amadeus Capital Partners and Praetura Ventures.
In this round, they were joined by a cohort of international investors. These include UK’s Capricorn Capital Partners and Portfolio Ventures Angel Fund, US’s Forefront Venture Partners, and Canada’s Verstra Ventures. Notably, existing investors such as Octopus Ventures, Playfair, and Techstars remained supportive and were active participants in the round.
Diving deeper into what Sprout.ai offers, the firm has designed a unique solution tailored for claims process automation. Their innovative technology assists insurance carriers and third-party administrators (TPAs) in amplifying their operational efficiency. By automating significant segments of the claims procedure, they have been able to reduce claim handling costs by a whopping 50%. Such advancements have led them to service a diverse set of global partners which includes big names like AdvanceCare, MetLife, and Generali.
One of the standout features of their product is its capability to meticulously extract and frame claims information. It then contrasts this with the given policy coverage. The result is a drastic reduction in claims settlement time, turning what used to take weeks into mere minutes.
The newly acquired funds will be funnelled to propel Sprout.ai’s market entry strategies, further its growth trajectory, and persistently innovate in product and AI development. Additionally, they plan on broadening their horizons by venturing into new insurance segments and global domains, with North America being a primary target.
An intriguing aspect of Sprout.ai’s operations is their patented technology which incorporates Generative AI and Large Language Models (LLMs) for claims assessment and AI model training.
The funds from Amadeus and Praetura will predominantly be channelled to enhance this sector, by intensifying the application of Generative AI within their Claim Extraction module. This is in sync with the forecast that the worldwide claims processing software market could touch the $73bn mark by 2030, projecting an annual growth of 8.3% between 2021 and 2030.
Sprout.ai CEO Roi Amir expressed his enthusiasm, saying, “We process thousands of claims globally with our solution every day and millions of policyholders receive fast and accurate decisions as a result. This investment will enable us to grow further into international markets and continue to invest in our AI-led product to drive towards our vision to ‘Make every claim better’.”
Adding to this, Amelia Armour, Partner at Amadeus Capital Partners, stated, “We’ve backed Sprout.ai since its seed stage and our latest investment shows the confidence we have both in the company’s commercial offering and the team’s ambition. Insurance claim handling is a huge global market that is ripe for automation to improve efficiency and accuracy. We’re excited to see the product now make it onto the international stage.”
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