Korr, a New York City-based InsurTech startup, has successfully bagged $3.2m in their seed funding round.
The tranche was secured in a round led by Motive Ventures along with Tokio Marine Future Fund. The company has also landed a noteworthy early investor, in the form of Plug and Play Ventures.
The financial injection will fortify Korr’s capability to drive innovation and execute its vision of reshaping the insurance landscape.
Founded in 2021, Korr is at the forefront of insurance technology, boasting a cloud-native core operating system. The company specialises in migrating on-premise legacy systems to the cloud, enhancing customer experiences and drastically reducing operational expenditure.
The firm’s unique platform is strategically designed to minimise switching costs, allowing carriers to seamlessly transition their historical data to the cloud. The company addresses the challenges faced by insurance carriers, offering a flexible and efficient solution to modernise their existing infrastructure.
Gregory Ritchie, CEO and Founder of Korr, stated, “We started Korr two years ago with the thesis that cloud-native architecture and innovation will drive positive change in insurance, particularly in the post-COVID workplace and marketplace. We have invented a forward-thinking product that drives competitive advantage, cutting legacy costs and constraints, and converting decades of historical data out-of-the-box. We continue to execute on our vision, building Korr on AWS along with our early corporate design partners.”
Harsh Govil, Principal at Motive Ventures, commented, “As FinTech investors, we are acutely aware of how much of financial services and insurance remain dependent on decades-old tech that makes innovation a challenge. Simple updates to financial or insurance products are costly and take months to implement. We’re excited to support the Korr team in building a next-generation platform to transform insurance data and business processes with a highly flexible cloud-native architecture.”
Robert Pick, EVP & Chief Information Officer at Tokio Marine North America Services, commented, “Our Tokio Marine companies around the world have adopted solutions appropriate to their products and market, creating a heterogenous landscape to manage and integrate. Korr’s approach is focused on ease of integration and ease of migration, in a cloud-native package, which can fit nicely in a variety of complex environments. Being able to “play well with others” is vital for modern core systems.”
Steve Pretre, who led the investment for Tokio Marine Future Fund, stated, “There is a large portion of the insurance industry that still runs on legacy technology, often home grown. With the major existing insurance core platforms, those migrations can cost tens of millions of dollars or more. For many books of business that cost does not make economic sense, leaving them marooned. Recent attempts from InsurTechs to launch new core systems have focused on enabling the launch of new, often simplistic products and are not suited to the complexity of legacy system migration. Korr is the first product and team we have seen that has focused on building a highly standardised platform designed to enable effective migration of these legacy systems to a modern cloud architecture. It is a solution the industry desperately needs.”
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