AI unicorn Tractable, which uses computer vision to help insurers understand the extent of damage to cars and properties, has today announced a US$65m Series E funding round.
Founded in 2014, Tractable’s AI technology has empowered the insurance industry to adopt an increasingly self-service approach to claims. When policyholders experience a car crash or property damage, Tractable’s technology analyses their photos and recommends decisions based on the severity of the damage.
The company is seeking to bring wholesale change to the “largely manual, time-consuming and costly” claims process, which has failed to evolve in spite of the global insurance market’s US$4.3tn potential. According to Tractable, its technology creates a more frictionless claims experience that is up to 10 times faster than traditional methods – in part because the AI is trained on millions of different data points.
The latest capital investment was led by SoftBank Vision Fund 2, and also included existing investors Insight Partners and Georgian. It comes just over two years since the company raised a similar amount in a Series D raise, which was the round that gave it a billion-dollar valuation for the first time.
Since then, it has continued to grow its product range and secure new customers within the insurance industry – including Root, Verisk, Covéa, and American Family Insurance. It has also been expanding, having launched a German subsidiary in April 2022 to better target the world’s third largest insurance marketplace.
The company says the latest investment will accelerate its “expansion across the auto and property ecosystems to apply AI to cars and homes that need to be repaired, protected, recycled or sold”.
Property insurance ‘ripe for AI disruption’, Tractable says
Alex Dalyac, CEO and Co-Founder of Tractable, says: “Tractable’s AI has helped millions recover faster from accidents and natural disasters. In SoftBank, we have a partner who understands the full application set of our technology at a granular level, combined with deep networks within the insurtech, automotive and property sectors.
“I’m excited by what we can achieve in redefining trust and transparency to support people in managing the life cycles of their cars and homes.”
Nahoko Hoshino, Investment Director for SoftBank Investment Advisers, who joins the Tractable board as part of this round, adds: “We are excited to work with Alex, Razvan [Ranca, Co-Founder and CTO of Tractable] and their team, who have been the forerunners of applying AI computer vision to bring efficiency into the insurance claims management process via applying AI computer vision.
“As strong believers in AI technology, we see huge potential for the technology to scale globally, embedding AI adoption into other verticals through exploring new use cases. Tractable already has strong traction in auto, whereas property is the exciting new opportunity that is ripe for disruption.”
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