Verikai Secures $6 Million in Series A Funding
Insurance technology company will use funds to enhance sales and marketing.
SAN FRANCISCO, California – July 8, 2020 – Insurance technology company Verikai has raised $6 million in Series A funding. Leveraging alternative data and machine learning to define risk, Verikai will use the funding to build out their corporate structure, with a strong focus on expanding their sales and marketing resources.
The investment is led by ManchesterStory, a Des Moines, Iowa based venture capital firm that partners with market-leading companies in the insurance technology, financial technology and healthcare sectors.With substantial experience with high-growth companies, ManchesterStory has expertise in identifying exceptional management teams with the vision and capacity to effectively scale their business.
Additional Series A investors include ValueStream Ventures, a thesis-driven, early-stage venture firm based in New York City, and Plug N Play, a startup accelerator in Silicon Valley. The Series A funding 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” said 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,” said 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.”
Verikai helps insurers close the gaps between underwriting and actuarial processes through a proprietary applied data platform. Data analysis and insight are directly served through a real time API into the underwriting workflow. With gaps between risk and rate accounted for down to the individual and group level, carriers and producers can align on rates and risk without increasing the underwriting burden. Ultimately, the amount of profitable new premium written increases, all while expanding available rates and products to small businesses and individuals.
To learn more, visit verikai.com.
Founded in 2018, Verikai is an insurance technology company leveraging alternative data and machine learning to change the way the industry views risk. Our well-established database includes more than 4,000 behavioral attributes on 260 million people in the US trained and calibrated through our proprietary machine informed modeling on over 25 million unique individual claimants in both P&C and A&H product lines. This provides deep insight to these individuals’ true underwriting risks represented in pools large enough to affect profitability against existing actuarial rates. With this data, we help insurance companies improve underwriting precision, speed and efficiency – and ultimately, we provide consumers and small businesses with greater access to a broader range of insurance products at prices aligned to their true risk of claiming.
ManchesterStory is a venture capital firm partnering with market-leading companies in the Insurtech, FinTech and Healthcare Sectors. With decades of experience in identifying high-growth companies with exceptional management teams with vision to effectively scale their business, ManchesterStory regularly invest with teams that have achieved early revenue generation.