Insurance News

Insurance blockchain firm BlockClaim announces seed funding

Insurance

On the 17th June, London based BlockClaim released details of its seed funding round, raising over $600,000. The insurtech start-up uses AI and blockchain in tandem to automate the claims process and detect fraud. Pragmatica, Amadeus, and some individual investors have backed BlockClaim.

The start-up’s technology was developed at the prestigious Imperial College London, claiming to be the first to combine distributed ledger technology (DLT) and AI for the insurance industry. The firm was then founded in 2017, using a private blockchain for automation, to store data securely, and to provide an immutable audit trail.

BlockClaim leverages AI in various antifraud applications, such as using image recognition to scan vehicle damage and verify whether it is genuine. Furthermore, BlockClaim’s system can ‘read’ phone and email conversations to find inconsistencies, without the need for time-intensive admin.

Niels Thon√©, CEO of the firm, said: “BlockClaim brings the insurance industry into the digital age with state-of-the-art engineering which couples the power of machines and distributed ledger technology with over two decades of industry experience.”

“The rapid advancement of data science allows us to provide unprecedented objectivity and context automatically in areas that were hitherto only subjective. This makes it much harder for fraudsters to pass through the net,” he continued.

Yesterday’s announcement focuses on the funding from Amadeus, which has invested over a billion dollars in tech since 1997. The firm is allegedly one of the three players who collectively own 99% of the market share of non-direct airline sales. However the relevance here is the company’s focus on funding AI and machine learning.

US firm Pragmatica is also an investor. The Arizona based company creates enterprise software solutions, targeting those in the criminal justice sector, whether at the federal, state, or local levels.

BlockClaim has additionally secured funding from the personal capital of insurance execs and individual investors such as CIO Toby Clarke, Alan Armitage, and Ninety CIC.

Also relating to auto claims, but focusing on inter-insurer settlements, State Farm announced a solution six months ago, with USAA revealed as a partner earlier this month. Meanwhile, the RiskStream Collaboration insurance consortium with almost 40 members is also rolling out auto related solutions.