Artificial Intelligence (AI) and Insurtech startup Tractable recently raised $60m in funding from a series B round of investors. This marks a significant milestone in the company’s growth and indicates Tractable’s potential impact on the traditional insurance industry.
As the insurance industry shifts to AI-based solutions, it’s important to understand Tractable’s role in this transformation. So let’s take a closer look at what Tractable is, how it could affect the insurance industry and why it was able to raise such a large sum of money.
Overview of Tractable
Tractable is a technology company that has developed capabilities for rapid and accurate automated damage assessment of vehicle photos. While conventional assessment techniques have been based on images in 2D, Tractable is the first to bring this process into the realm of 3D computer vision.
The company has created proprietary DamageNet™ Artificial Intelligence technology to review images and quickly assess damages, generating reliable estimates in a fraction of the time required by traditional methods.
This innovation can be credited with helping shape and advance the insurance industry, with many insurance companies now integrating Tractable into their claims management procedures. The distinct advantage of Tractable lies in its potential to reduce claim turnaround times and labor costs while increasing accuracy and efficiency.
Moreover, through its implementation, organizations can improve customer satisfaction levels due to expedited decision-making processes and gain valuable data insights into their risk exposure profiles. In summary, Tractable is changing how insurers handle their claims processes and proving a viable solution for modernizing the insurance industry.
AI insurtech Tractable raises $60m in funding
In December 2019, Tractable, a world-leading artificial intelligence (AI) company, announced a $60 million series C investment from SoftBank Vision Fund 2 and several other venture capital investors, raising the startup’s total funding to nearly $100 million.
The funding will enable Tractable to scale its AI technology for the insurance industry and revolutionize claims-handling processes across the globe. For example, the technology enables claims assessors and car repair shops to automate the task of recognising damages of vehicles after an accident, so that machines instead of experts can undertake damage assessment.
By allowing greater accuracy than assessors, who must interpret limited evidence while relying on their experience alone in determining appropriate remedy or referring cases to further review due to ambiguity or uncertainty in their findings, Tractable’s AI solution speeds up claim processing providing accurate prediction. This reduces costs for insurers who can now pass savings on to policyholders without sacrificing quality of service.
Impact on the Insurance Industry
Tractable has recently raised $60M in funding for its artificial intelligence-driven insutrtech platform. This substantial amount of funding injection has important implications for the insurance industry.
With this in mind, it’s important to take a closer look at the potential impacts of this financing round and their implications.
AI-driven technology
The insurance industry has experienced significant pressure to reduce costs, streamline processes and deliver fast claims. To cope with this, many insurers are turning to technology, such as artificial intelligence (AI), to expedite the complex process of assessing and resolving insurance claims. AI-driven technology can provide insurers with tools to enable faster, more accurate and consistent settlement of damaged assets.
Tractable is a leading provider of AI-driven property & casualty (P&C) insurance solutions. The company provides an automated platform that leverages computer vision and deep learning algorithms to quickly assess damaged assets following an incident. This technology allows a more efficient way to monitor incidents remotely and move those affected away from traditional manual methods of inspecting damaged vehicles, homes or other properties.
Most P&C insurers have faced increased customer demand for faster assessment times from policyholders who refuse to pay longer waiting periods or accept mild damage in exchange for reduced settlement amounts. AI-driven technologies such as Tractable’s solution offer an alternative by reducing resolution times so that adjusters can rapidly assist in assessing damage with minimal disruption and delays. Furthermore, accuracy is improved since automated detection reduces the risk of human error when identifying damages in photos or videos used in assessments.
AI-driven technologies like Tractable’s solution offer immense value to the insurance industry by changing how insurers view risk management. These cutting-edge solutions make processes faster while allowing insurers to access more detailed data than before on damage images thereby improving their accuracy without manual inspection while keeping costs low at scale.
Automation of claims processing
Advances in artificial intelligence (AI) have enabled the automation of claims processing at an unprecedented rate. Trained by proprietary AI algorithms, Tractable’s AI-powered claim processing software autonomously assesses various auto and property damage claims, rapidly accessing data and providing more accurate estimates than manual processes.
Before automation, carriers were required to manually assess photographs of damaged vehicles and property by laboriously logging measurements, identifying parts that needed replacement or repair, assessing rental costs, and calculating labor. This process was extremely costly in terms of time and money. Thanks to Tractable’s AI solution however, carriers can now carry out this work 30x faster than before with the same level of accuracy. This allows them to quickly settle their customer’s claims ensuring their satisfaction while significantly minimizing their financial losses on the claim.
Tractable also helps insurers manage liaisons between customers, service center partners and suppliers enabling boosted communication efficiency and automation of time-consuming tasks such as part searches and invoicing processes. All these benefits result in faster settlement times and lower operational costs for carriers looking to modernize their business operations and accelerate growth in today’s competitive market.
Cost savings for insurers
Cost savings for insurers is an important outcome of the insurance industry and can be achieved through various methods. These methods include implementing cost-cutting measures such as using technology to automate processes, creating streamlined process efficiencies and increasing data utilization to identify opportunities for cost savings.
Technology has allowed insurance companies to replace manual processes with automated systems, which can help reduce employee salaries, paperwork, document processing, and more costs. Automation also helps reduce administrative costs by streamlining communication between carriers, customers and agents and providing better customer service.
Data is another key area that can help insurers achieve cost savings. For example, insurers can use data to identify areas for potential cost-saving opportunities such as improved risk management techniques. In addition, by understanding their customer’s needs and preferences insurers can create tailored products while keeping costs low.
Overall, cost savings for insurers through various methods discussed above can help them maintain their competitive edge in the market place while enabling them to provide affordable coverage for their customers.
Benefits to Consumers
The stage is set for a massive change in the insurance industry as AI insurtech firm Tractable has raised $60 million in funding. With this infusion of capital, Tractable is pushing into the mainstream with its AI-driven system that enables more accurate and faster claims processing.
This will benefit consumers in the insurance sector by bringing faster results and ensuring greater accuracy when it comes to claims processing.
Let’s dive into how this will affect the insurance industry and its customers.
Faster claims processing
Filing and processing a claim by an insurer can be time-consuming and confusing. With the insurance industry constantly striving for better customer service, there is a great need for fewer delays in processing claims. Fortunately, technology solutions such as Tractable AI have entered the arena, offering powerful solutions that enable faster claims processing than manual methods.
Tractable’s use of artificial intelligence (AI) facilitates faster claims processing than manual methods through various ways. For example, Tractable’s AI-driven solutions allow insurers to quickly assess pictures taken by customers to accurately estimate damages and settle claims with fewer back-and-forth communication delays. In addition, automated analysis paired with AI can identify complex patterns in vast amounts of data, saving resources and accelerating overall decisions on claim payments or dispute resolution processes.
Ultimately, consumers benefit from shorter wait times associated with Tractable’s AI solutions as they can now receive their settlement offerings or payments faster than ever before, enabling them to proceed with putting their life back in order more quickly after an accident or natural catastrophe. Additionally, the automated analytics of Tractable help ensure accuracy in claim decisions across all types of industry losses – from damaged vehicles due to an accident or hail storm, to a flooded basement due to recent rain storms – making customer needs both easier and faster for customers’ situations around the globe.
Improved accuracy of claims
Using Tractable’s AI technology within the insurance industry greatly benefits consumers by providing more accurate claims handling. Tractable’s system can simulate humans with near-perfect accuracy by leveraging deep learning algorithms and computer vision.
This ultra-precise assessment of damages enables insurers to pay out claims more efficiently, significantly reducing payment times for policyholders. Furthermore, ongoing analysis by Tractable helps adjusters hone their skills and become better at identifying instances of fraud or nonstandard workmanship.
As a result, policyholders can trust that their claim will be correctly evaluated and processed quickly. This improved accuracy reduces costs to insurers and increases consumer satisfaction due to the reduced likelihood of them being wrongfully denied coverage or undercompensated for their payments.
All in all, using Tractable’s AI for assessing damages provides an invaluable service for consumers – increased accuracy in assessing insured losses backed up by swift customer service that accurately assesses each case without compromising on standards.
Increased transparency
Increased transparency is one of the most notable changes in the insurance industry resulting from Tractable’s work. By using AI solutions to quickly process claims and make payment decisions, insurers can provide customers with more precise and precise estimates of their premium while providing visibility into why they are charging certain rates. This ultimately gives customers more control over spending and enhances trust in the industry overall.
By leveraging AI technology, insurers can better identify policyholders who do not present significant risk to the company. This enables them to pass on cost savings to these customers through policies or discounts that would otherwise be unavailable. In addition, by offering reduced premiums, companies can reward lower-risk policyholders for good habits, such as avoiding driving at night or keeping a clean record. This technology also makes it easier for insurers to detect fraudulent claims quickly, which saves money and protects policyholders from dishonest behavior.
Overall, Tractable’s impact has improved customer experience by increasing trust and communication between insurers and customers through its transparency solution. The benefits of this increased transparency affects both policyholders and future potential customers who can access more accurate information about how much they should expect to pay for their insurance policies based on their risk profile. Additionally, the improved process has positively affected overall efficiency in the industry due to reduced costs associated with settling claims quickly and accurately thanks to AI advancements.
Challenges
Tractable, an Artificial Intelligence (AI) startup, has recently raised $60m in funding to help solve major challenges the insurance industry faces. This funding will allow them to further develop their AI algorithms, revolutionizing the industry and allowing for faster claims resolution.
However, there are still some challenges that Tractable must overcome before they can reach their goal. Let’s take a look at some of these.
Regulatory hurdles
Regulatory compliance is an important part of business operations in the insurance sector, with regulations and laws dictating how firms must operate, handle customer data and the procedures they must implement to ensure operational excellence. However, navigating this complex landscape can be difficult for insurance firms. This can mean that adopting new technology such as Tractable’s AI solutions can be challenging as firms must not only comply with industry regulation but also consider regional differences and changes in legislation, such as GDPR or California Consumer Privacy Act (CCPA).
Therefore, it is essential for insurance carriers to work with a technology provider who has a comprehensive understanding of these regulations and the ability to ensure compliance. Achieving this with Tractable’s AI solutions can create an excellent opportunity for insurance companies, allowing them to benefit from AI-driven insights while considering the associated regulatory considerations.
Lack of industry-wide adoption
The insurance industry is one of the most reluctant verticals to adopt new technologies, often because of concerns related to data security, compliance with respective laws, and other emerging technologies that may align with the organization’s needs. As a result of this reluctance, an industry-wide adoption of Tractable is yet to be seen.
While many insurers have adopted specific machine learning tools and applications from Tractable as part of their workflow, there are still pockets within which limited AI adoption can be seen. These include manual documentation review processes for legal protection or rate assessment for underwriting. Despite the apparent technical capability for automation within those areas, those processes remain manual due to insurers’ preference for risk management and operational control.
Insurers need to proactively prioritize the digital transformation journey instead of adopting incremental changes at a slow pace. To overcome this lack of industry-wide adoption, insurers must create an environment conducive to embracing new technologies while addressing their regulatory and privacy concerns accordingly. This will help them gain competitive advantages and build trust with their customers by delivering a personalized yet secure, efficient customer experience.
Potential job losses
The introduction of automation and artificial intelligence in the insurance industry has the potential to significantly reduce costs. Still, at the same time, it may lead to a reduction in workforce requirements. Automated systems can handle tasks faster and more precisely than human workers, leading some to suggest that jobs may be lost.
Insurance companies must assess how automation and AI affect their staff, strategizing for smooth transitions during personnel changes. In addition, companies must focus on mitigating any potential job losses from automation implementation. Finally, support and coaching should be provided for those transitioning from specific roles that become redundant or phased out due to technology adoption.
At the same time, companies should consider how these advancements have created new opportunities in the industry – especially concerning customer service and accessibility. For example, automation can eliminate tedious manual tasks, giving customers easy access to results and faster response times. This creates a win-win scenario where clients and employees benefit from improved outcomes thanks to automation technologies.
Conclusion
The insurance industry faces a sea of changes due to technological advances, AI, and insurtech. Tractable, a leading insurtech company, has greatly impacted this area. With the recent $60m in funding, Tractable is set to continue revolutionizing the insurance industry and how claims are processed.