Manchester-based InsurTech Veridox has raised £1m in a funding round led by Outward VC, with Solly Solomou, founder and CEO of social media giant LADbible, joining through his Solo Investments Holdings vehicle.
The funding is set to support product development and sales as Veridox prepares for general launch, according to Business Cloud.
The company uses artificial intelligence to detect fraudulent insurance claims, a problem costing European insurers an estimated €13 billion annually, much of it going undetected.
“Document and image fraud is no new challenge for insurers; we can only estimate what the real cost of it is because so many successful fraudulent claims naturally go undetected,” said Veridox founder Dan Sandler, a former solicitor and co-founder of payments app Tabb. “AI is enabling even ‘novices’ to produce more convincing fakes, which typically require intensive manual analysis by fraud investigators to uncover.”
Veridox’s software analyses claims documents and images, flagging signs of manipulation while explaining why a document presents a risk.
This allows investigators to separate legitimate edits, such as added signatures, from malicious tampering. In a pilot with a $3 billion insurer, Veridox’s minimum viable product detected £50,000 of fraud in seconds.
The company employs 13 people and works with 15 leading insurers, including some of the UK’s largest.
“When facing such a monumental challenge as insurance fraud in the AI era, Veridox has the potential not just to reshape its market, but to set a new standard in fraud detection,” said Sanchit Dhote, principal at Outward VC.
