Today TrustLayer announced it completed a $6.6 million seed round. The company uses AI and machine learning to extract and standardize data from insurance certificates and the data is written to a blockchain. Contractors such as builders and engineers often need to provide proof of insurance to work, and the solution allows their employer to verify the cover in real-time.
The funding round was led by Abstract Ventures and included Propel Venture Partners, NFP Ventures, BoxGroup, Precursor Ventures and BrokerTech Ventures. The latter is backed by insurance firms. Twenty of the top 100 U.S. insurance agencies also participated.
Earlier this month the insurance consortium RiskStream Collaborative said it was working with TrustLayer for its digital proof of insurance solution.
The startup has won several competitions, including a The Institutes Insurtech Award and a similar one from enterprise blockchain firm R3.
“We’re honored to have the support of so many of the top 100 insurance brokers,” said John Fohr, co-founder and CEO of TrustLayer. “Verification of insurance and business credentials is a pain point for millions of businesses and demands a solution that is automated and secure.”
The funds will be used to scale operations, expand sales and marketing and work with networks such as RiskStream, which involves numerous system integrations with legacy systems.
“We are excited to back TrustLayer as they modernize the insurance stack, starting with compliance automation and digital proof of coverage,” said David Mort, Partner at Propel Venture Partners. “The customer and investor interest from leading brokerages validates TrustLayer’s approach and we look forward to working with all to transform the way the insurance industry shares information.”
Marsh has launched another proof of insurance solution in the U.S., and rolled out its commercial applications solution in April 2019. In Hong Kong, CryptoBLK launched a blockchain proof of insurance system with the Hong Kong Federation of Insurers.