Why We Chose to Harness the Power of AI for Insurance
Insurance is a product that everyone in the world needs. In reality, it’s actually pretty simple: Insurance is the service of transferring the risk of an unbearable financial outcome away from you to an entity that can withstand it at a fair price. This simple idea has had a huge impact on society – allowing individuals and companies to responsibly take risks that otherwise would be untenable. But over time, as insurance has covered more and more potentially unbearable risks and outcomes across everyone’s lives, the complexity of actually being an insurer has skyrocketed while the systems and processes they have to serve their customers haven’t kept up. With an array of data now pouring into every claim on a constant basis from disparate sources – many of which are unique to each claim – this complexity can be overwhelming for even the most expert adjuster. Compound that with well-intended – but limiting and quickly outdated – technology overlays that insurers have attempted to stitch together over the last few decades to try and simplify the process, and all you have is even more complexity. It’s like trying to teach your typewriter to fax your VCR to download Spotify and bluetooth it to your car. It’s not going to happen.
Today we’re thrilled to announce that EvolutionIQ’s recent $21m Series A, led by Brewer Lane Ventures, has put us in a position to further our mission to use technology to make insurance more affordable, accessible and transparent for everyone. By helping insurance carriers use the masses of data around them to make better, faster and more accurate decisions on their policyholders’ claims, EvolutionIQ has become a core part of our client’s future-proofing strategies.
When we started EvolutionIQ in 2019, we only had a founding hypothesis to guide us: that the data held in an insurance claim could be used by a custom built, cutting edge AI process to augment human decision making and drive better claim handling outcomes at scale. It was that clear-cut. Tom left a job as a senior AI leader at Google, Mike left Bridgewater Associates and Jonathan returned to the operator world after successful startups of his own because the opportunity was so enticing- we’d work with some of the largest companies in a top five global industry to re-invent the way their product was delivered. As a group of technologists looking to have a large impact on our world, we went all-in.
Our success is not an accident. Our team, originally made up of Google and Bloomberg engineers, has diversified beyond core innovators and grown to 15, including a Chief Insurance Officer who was previously the president of a major insurance company and one of our early clients. We expect to more than double this year, coming off our second round of Venture financing last spring, led by one of our original investors, FirstMark Capital.
To date, we’ve now processed millions of claims, saved our carriers tens of millions of dollars, helped thousands of injured Americans get healthy and back to their jobs ahead of schedule, and expanded our product line to serve many of the world’s largest lines of business. We’re just getting started.
At EvolutionIQ, we have the privilege of investing our time, our focus, and a fresh round of financing into a problem that can truly be a win-win for our society. As we continue to grow, we’ll be moving into other core areas of insurance, using the same methodology that has defined our success so far: bring together some of the leading technologists in the world, motivate them with the opportunity to have enormous impact on a global industry, partner with some of the most innovative insurance players on the planet and approach every problem with a first principal’s question: “Could an EvolutionIQ crystal ball improve this?” As long as the answer continues to be a resounding ‘YES’, we expect to continue to punch above our weight and be a critical, trusted partner to the entire insurance industry. If you want to be a part of our mission, we’d love to meet you.
– Tom Vykruta, Mike Saltzman and Jonathan Lewin