Insurtech Timeline: Tractable’s journey to unicorn status
Headquartered in London, Tractable was founded with the idea of bringing artificial intelligence (AI) and image recognition technology to car insurance. This ‘visual AI’ is capable of instant and highly accurate appraisal of damage, yielding a result that has the complexity of human judgement and the speed of a machine.
“Getting into an accident can be anything from a hassle to trauma,” said Alex Dalyac, CEO. “Our belief is that that whole process can be 10 times faster, thanks to the breakthroughs in image classification.”
Tractable’s unique value proposition netted US$1.9mn in its first funding round.
The company’s Series A round draws significantly more interest: $8mn is raised from 10 investors.
Tractable’s product offerings include AI Estimating and Triage, AI review, AI Inspection, and AI Property. Furthermore, it offers support to a wide range of auto and property businesses in the auto insurance, fleet, and property sectors.
Momentum continues to build - Tractable’s Series B round attracts $25mn from six investors, with Insight Partners taking the lead. This will prove to be an enduring backer for the company.
- The company processes $2bn in vehicle repairs and purchases
- It has helped over one million households following accidents or disasters
- 20% of the world’s top 100 P&C insurers use Tractable’s AI
In February, just prior to the global COVID-19 pandemic lockdown, Tractable drew another $25mn in its Series C round.
In the year which follows, peoples’ reduced need for travel subsequently produces fewer car accidents. Over a 24-month period, Tractable still managed to achieve an estimated growth of 600%, yet Dalyac would lament to TechCrunch that it could have performed even better were it not for the pandemic.
Pictured: Alex Dalyac
A major milestone was reached in June as Tractable successfully closed its Series D at $60mn, bringing its total capital raised to $115mn and elevating it to unicorn ($1bn+ value) status.
Lonne Jaffe, MD at Insight Partners, which led the round in conjunction with Georgian Partners, commented, “Tractable’s accelerating growth at scale is a testament to the power and differentiation of its applied machine learning system, which continues to improve as more businesses adopt it.”
Cover image source: Tractable
CB Insights: US Insurtechs Are Competing In A Global Market
In the first half of the year, insurtech companies around the world have raised US$7.4bn, nearly doubling their funding in Q2. According to Digital Insurance, insurtechs have raised US$4.8bn in Q2—an 89% increase in funding from Q1. But US firms are no longer the sole beneficiaries.
What Are the Stats?
Out of the 15 Q2 mega-rounds—those that top US$100mn—only eight included American firms. Pretty good, you might say. That’s over half! But US companies only made up 38% of the deals, which marks a 10% drop from Q1 and a 12% drop from 2020. Technically, therefore, US insurtechs are less influential than they’ve been in the past. But who says this is a bad development?
Despite my American citizenship, I’d argue that a more globally diverse insurance market is only for the best. Many of the world’s citizens who could most benefit from improved insurance services live outside of the States—and deserve local, tech-savvy services.
Why Does This Matter?
You’re always going to see the typical insurtech contenders from Western countries. For instance:
- German-based wefox: US$650mn Series C
- UK-based Bought By Many: US$350mn Series D
- US-based Collective Health: US$280mn Series F
But it’s critical that we address risk across the world. American insurtechs might be some of the most technologically skilled firms in the industry, but it’s not their first goal to address floods in Southeast Asia, crop destruction in China, and COVID complications in South Africa. That’s why we should celebrate that the recent Q2 round included insurtechs from 35 different countries.
According to CB Insights’ Q2 2021 Quarterly InsurTech Briefing, this was the first time that they’d observed insurtech activity in Botswana, Mali, Romania, Saudi Arabia, and Turkey. And ‘from a product, service, distribution, and underlying risk perspective, we—as a society and as an industry—are moving at an unprecedented speed’, says Dr. Andrew Johnston, Global Head of Willis Re InsurTech.
Just ask CB Insights. InsurTech value propositions have resonated with the world.