ClaimSorted raises $3M pre-seed to replace claims agencies with AI plus human handlers

Claims-handling service for insurers that automates parts of claims processing with AI and uses human handlers for complex cases

Insurers will switch from third-party claims agencies to a service that automates routine claims with AI and leaves complex ones to human handlers

$3M pre-seed led by firstminute capital, with Y Combinator, Precursor Ventures and Transpose

The founders ran their own insurance company and relied on third-party claims agencies, which led to constant complaints. One customer waited 30 days for a payment and the agency replied that it was only 30 days. They also found nearly 20% of agency payouts were wrong, costs insurers then recovered through higher prices.

They built ClaimSorted to automate some claims processes with AI while human handlers manage complex cases. The team includes Harriet Parkinson, formerly COO of Revolut Insurance, and Jim Hageman, formerly Chief Claims Officer at Lemonade. It says it already operates in the US, UK and Europe across three insurance verticals.

Third-party claims agencies were slow and made payout errors in nearly 20% of cases, per the founders

Insurers recovered the wasted money by raising prices for customers

Insurers spend over $200 billion a year on claims agencies

Experienced insurance executives joined to give the team domain credibility

The case rests on the founders' own pain as insurers, but its speed and accuracy claims (three to ten times faster, over 20% fewer payout errors) are self-reported.

As of 2024-10-11 ClaimSorted had a $3M pre-seed round and said it operated in three insurance verticals. All performance figures are the company's own claims.