Insuranceciooutlook

Verikai Raises $6M in Series A Round of Financing

By Insurance CIO Outlook | Friday, August 14, 2020

Hari Sundram, CEO

The company intends to use the capital to build out its corporate structure, focusing on expanding its sales and marketing resources

FREMONT, CA: Verikai, a San Francisco, CA-based insurance technology company, closed $6m in Series A round of financing. ManchesterStory led the round with active participation from ValueStream Ventures and Plug N Play.

The company intends to use the capital to build out its corporate structure, focusing on expanding its sales and marketing resources.

Established in 2018 by Hari Sundram, CEO, Verikai is an insurance technology company utilizing alternative data and machine learning to assess risk. Its database includes over 4,000 behavioral attributes on 260 million people in the U.S. trained and calibrated through a proprietary machine informed modeling on more than 25 million unique individual claimants in both P&C and A&H product lines. This gives deep insight into these individuals' true underwriting risks, represented in pools large enough to impact profitability against existing actuarial rates. With this data, the company allows insurance companies to improve underwriting precision, efficiency, and speed – and offer consumers and small businesses access to a broader range of insurance products at prices aligned to their true risk of claiming.

The Series A round follows a seed investment round in early 2018. Seed investors included Aioi Nissay Dowa Insurance Company Limited and National General Insurance.

"The strong interest from the VC community signals a realization that differentiated underwriting and applied data are now necessities for insurers seeking profitable new premium," stated Hari Sundram, co-founder and CEO of Verikai. "This funding will allow us to build out a marketplace infrastructure where risk and rate can be fundamentally aligned between distributors and carriers. Ultimately, this alignment allows employers and individuals with positive behavioral attributes to receive the rate relief they deserve."

"Verikai leverages alternative data on individual behaviors, along with the largest set of carrier-informed underwriting outcomes, then calibrates and trains it with their machine learning-informed modeling to create an ultra-accurate prediction of future claims," added Matt Kinley, co-founder and managing partner of ManchesterStory. "Insurtech is our core focus and we are excited to back a company with such a strong product-market fit."

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