ClaimSorted, a company focused on simplifying claims processing for insurers, has secured $3m in pre-seed funding.
The oversubscribed funding round was led by Firstminute Capital, with additional support from YCombinator, Precursor Ventures, and Transpose. Prominent founders from the InsurTech industry also participated in the round, according to Tech.eu.
The new funding will be used to expand ClaimSorted’s operations across the US, UK, and Europe, and to develop further capabilities within its claims platform.
The company’s solution is already being deployed across three major insurance verticals and has been well-received by insurers dissatisfied with their current claims providers.
ClaimSorted was founded in response to the founders’ own frustrations while managing claims at their previous insurance company.
During this experience, they relied on third-party claims agencies (TPAs) that failed to deliver acceptable service, causing long delays and frequent errors in payouts.
The tipping point came when a customer complained about a 30-day payment delay, and the TPA dismissed the issue, stating the customer could wait longer.
This, along with discovering that 20% of payouts were incorrect, highlighted deep inefficiencies in the industry.
ClaimSorted aims to address these issues by providing an AI-driven claims platform that automates routine tasks, reducing human error while still allowing for human intervention in complex cases.
This hybrid approach speeds up claims processing significantly—sometimes up to ten times faster than traditional methods—and reduces payout errors by over 20%. The company also offers real-time insights to underwriting teams, helping insurers make better-informed decisions.
ClaimSorted has assembled a leadership team with deep industry expertise. Harriet Parkinson, former COO of Revolut Insurance, and Jim Hageman, also known as “AI Jim,” the former Chief Claims Officer at Lemonade, are key figures driving the company’s growth and innovation.
Pavel Gertsberg, co-founder and CEO of ClaimSorted, commented, “Too many insurers are stuck with claims partners who just don’t care enough about their customers. We experienced this frustration firsthand. With ClaimSorted, we’re building a solution that puts their customers at the centre of the claims experience.”
Sam Endacott, Partner at firstminute Capital, added, “ClaimSorted is bringing modern software to a major segment of the insurance industry that is yet to undergo significant digital transformation and is dominated by large services companies. We are excited to see how the team with their deep domain expertise can automate away laborious repetitive tasks and deliver a superior user experience to insurance companies and their customers.”
ClaimSorted’s success in raising this pre-seed funding round follows its mission to revolutionise the insurance claims industry, positioning it to further challenge existing systems with its AI-powered approach.
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