Shepherd has recently concluded a $13.5m Series A funding round and concurrently launched an innovative AI-powered offering known as Shepherd Compliance.
This latest tranche was secured from a host of investors- Costanoa Ventures from Palo Alto, California led the investment round, with contributions from Intact Ventures, Era Ventures, Greenlight Re, and Spark Capital added to the figure, according to InsurTech Insights.
The newly acquired funds will be allocated towards strengthening Shepherd’s underwriting and software teams, accelerating product development, and expanding its software portfolio.
The firm also revealed its latest offering, Shepherd Compliance, which is set to integrate AI-powered software with insurance offerings to aid contractors in reducing premiums, streamlining processes, and enhancing risk management.
The commercial construction sector is grappling with a host of obstacles, including rising claim severity, outdated underwriting methods, and a reluctance to embrace technology.
These issues are placing the long-term viability of insurance within the industry in jeopardy. Shepherd, a leading figure in the insurance technology realm, has issued a stark warning, suggesting that without significant advancements, the $10tn commercial construction industry may face insurmountable challenges.
Responding to these urgent issues, Shepherd has unveiled Shepherd Compliance, an innovative software solution tailored to automate and streamline the process of vendor compliance reviews. This critical procedure is essential for large enterprises, as it involves verifying coverage from downstream vendors for each project.
However, it is often riddled with errors and inefficiencies. Shepherd Compliance harnesses the power of artificial intelligence to meticulously analyse PDF-based data and automate associated workflows, thus ensuring a seamless integration with popular project management platforms like Procore.
Justin Levine, CEO of Shepherd, highlighted the pressing need for innovation in the commercial construction insurance sector.. He said: “There is an urgent need for innovation in the commercial construction insurance industry. Our mission at Shepherd is ambitious but simple: to create the first comprehensive platform that combines top-tier insurance offerings with world-class software to help commercial businesses manage risk and prevent losses.”
Mark Selcow, general partner, Costanoa Ventures, added, “Commercial construction is a central and vital driver to the overall economy, yet has been overlooked by technology providers for years. High insurance costs and even unavailability of coverage plagues a sector already struggling with tight margins and business risk. The team behind Shepherd is taking a technology-forward approach, developing innovative insurance products that use modern software and data techniques to create a vastly superior insurance offering. Shepherd delivers better priced, better fit policies for clients, thanks to its data and tech advantages.”
Copyright © 2024 InsurTech Analyst
