Main Highlights
- TrustLayer, an AI-powered platform that works to automate insurance verification, said today that it has raised a $15.1 million Series A round.
- The proceeds will be used to hire across sales, marketing, and engineering teams, develop its live digital proof of coverage solution, and integrations with insurance carrier systems of record.
- TrustLayer’s service uses robotic process automation (RPA) and artificial intelligence (AI) to automatically check the insurance and licenses of vendors, suppliers, borrowers, and tenants.
- Their system automates insurance collecting and verification, allowing businesses and their partners to correctly estimate risk and minimize business interruption.
TrustLayer, an AI-powered platform that works to automate insurance verification, said today that it has raised a $15.1 million Series A round. Craft Ventures led the investment, which included participation from Abstract Ventures, Box Group, Propel Venture Partners, NFP Ventures, Sure Ventures, and PruVen Capital. The proceeds will be used to hire across sales, marketing, and engineering teams, develop its live digital proof of coverage solution, and integrations with insurance carrier systems of record.
According to research, 75% of companies in the United States are underinsured. Aside from the danger, the present procedure is expensive for insurers and firms requiring verification: In the United States, 200,000 demands for evidence of coverage are made every day, incurring considerable resource and administrative expenses.
TrustLayer’s service uses robotic process automation (RPA) and artificial intelligence (AI) to automatically check the insurance and licenses of vendors, suppliers, borrowers, and tenants. RPA by the company automates operations that were previously performed by humans by utilizing software robots that follow a set of rules and interact with corporate systems via user interfaces.
Tracking insurance requests on TrustLayer
TrustLayer, founded in 2018 by John Fohr and Vincenzo Acinapura and a graduate of the insurtech accelerator program BrokerTech Ventures, allows consumers to verify coverages, check exclusions, and get insight into insurance validity in real-time. Companies can handle vendor requirements such as W9s, attestations, and other contracts, and create new compliance goals for information that has to be verified.
“Insurance helps to reduce risk. For companies, insurance is important to the long-term viability of their operations. The problem is that no one knows who is insured and by how much – we’re still exchanging badly scanned PDFs and faxes to show out-of-date coverage,” Craft Ventures partner Brian Murray said in a statement. “TrustLayer corrects this. Their system automates insurance collecting and verification, allowing businesses and their partners to correctly estimate risk and minimize business interruption.”
TrustLayer has piloted with Procore, Graham Business, Liberty Mutual, and Nationwide, and the company claims to be working with “dozens” of the major brokers and carriers in the United States in industries ranging from construction to property management, sports, and hotels. Some of these brokers invested in TrustLayer and chose to become sales channel partners, reselling the startup’s service to their own clients.
TrustLayer uses AI and machine learning technologies to automate insurance verification for Certs/COIs/ACORD 25s. They also assist you in managing other vendor needs (W9s, Attestations, and other contracts) on a single collaborative platform. Their technology allows you to verify coverages, examine exclusions, and obtain real-time information into insurance validity, among other things.
“It’s apparent that verifying insurance and business credentials is a pain point for millions of organizations, which is why we’ve seen such passionate support for TrustLayer’s safe, automated solution,” Fohr stated in a news statement. “We are extremely thrilled to have such significant investment from a top-tier SaaS fund like Craft Ventures, as well as some of the country’s best insurance brokers, which is fantastic industry validation for our technology.” We look forward to building on this momentum with the help of our investors.”
The pandemic’s digital changes are propelling the global insurtech industry to unprecedented heights. According to CB Insights, insurtech firms raised $7.4 billion in the first half of 2021, outpacing the $7.1 billion raised in all of 2020 by more than $300 million. According to Grand View Research, the market will rise 48.8 percent from its present top of $2.72 billion by 2028.