Artificial intelligence (AI) damage assessment insurtech Tractable will use its recent $65 million raise to further refine its tech and tap into generative AI, its CEO told Insurance Business.
“This funding will enable us to double down on our AI research and development capabilities for our customers to power the end-user’s journey,” Tractable CEO and founder Alex Dalyac said. “The investment also enables us to explore how our technology can leverage recent advancements in the areas of generative AI and large language models.”
The insurtech, which has worked among big names in the insurance business from Aviva to Sompo to Tokio Marine, announced its Series E funding investment on July 18.
Backed by lead investor SoftBank Vision Fund 2, the round brought the company’s total funding to $184.9 million to date.
Tractable’s primary technology is imported with hundreds of millions of photos and data, according to Dalyac. Its algorithms are able to recognize general visual patterns, helping it assess damages and make recommendations.
“Once photos of damage are uploaded, the tool is able to recognize what parts have been damaged and assess how badly they have been affected. It can then recommend decisions based on its confidence level,” Dalyac said.
Find out how tool insurance policy works to keep your business running here.
The technology has been used across both property and auto insurance.
Part of the appeal, according to Dalyac, is the speed at which AI can make a decision compared to the “traditional waiting period of days or weeks” it can otherwise take to assess a claim.
“When properties are hit by a natural disaster, our AI enables homeowners to assess damage so claims can be processed – and livelihoods restored – in a few hours,” Dalyac said.
He pointed out that property appraisals for natural disaster recovery have been taking off in Japan, with a 10x year-on-year volume growth expected this year, “so we’ll continue to advance our AI for home assessment and natural disaster recovery.”
Furthermore, he said there is also an increased demand for consumers to be able to perform natural disaster risk profiling and mitigation through their smartphone devices.
“For example, whether a typhoon or hurricane could blow the roof off a home can be influenced by the materials and condition of the home’s windows and doors,” Dalyac said. “Allowing anyone with a smartphone to assess their home could help them understand the most cost-effective way to reinforce their home and affordably insure it.”
In addition to insurers and the rental markets, Tractable has also targeted auto repairers, recyclers, and rental companies.
Dalyac said he hopes the technology will become an integral part of the auto chain.
“In the future, we envision our AI being used across the entire car owner journey– whether someone is looking to buy a car, sell their car, get repairs, get a rental, etc – so drivers have one app that connects all of these traditionally complex processes and puts more control in their hands,” he said.
