Fraudulent claims may be the single most expensive issue facing insurers today. While improved technology has made it easier for many people to commit fraud (think photoshop), tech is also making it easier to catch fraudulent claims before they become a problem. The Paris-based company Shift Technologies is helping insurers do just that.
Shift recently announced a $60 million round of funding. According to TechCrunch, “Bessemer Venture Partners is leading the round and existing investors Accel, General Catalyst, Iris Capital and Elaia Partners are also participating.”
An investment of that size indicated just how problematic fraudulent claims are, and accentuates how much money is out there for a company that can help insurers avoid them.
It makes sense that insurers are excited about what companies like Shift are bringing to the table After all, fraudulent claims cost insurers a staggering amount of money every year. Of course those insurers are willing to pay for a service that can eliminate those losses. Spending a little money to save a lot money is a philosophy every successful company can get behind.
Shift Technology seems to be leading the pack when it comes to using technology to fight insurance fraud. The company already services 70 insurance companies around the world, and that’s before this $60 million round of funding went through.
TechCrunch does a good job outlining what exactly it is that sets Shift Technology apart from the crowd. According to TechCrunch “Shift Technology is creating a strong barrier to entry. Thanks to its huge data set, it can create an AI-powered detection model that is getting more and more accurate. A new company would have a hard time catching up.”
That being said insurtech tools used to prevent fraud is a growing market. Anyone following the space can expect to see more companies like Shift popping up in the near future.