Insurance Technology Company Verikai Raises $6 Million

By Annie Baker ● August 7, 2020
  • Insurance technology company Verikai announced that it has raised $6 million in Series A funding. These are the details about the funding.

Insurance technology company Verikai announced that it has raised $6 million in Series A funding. This round of funding was led by Des Moines, Iowa-based venture capital firm ManchesterStory.

Utilizing alternative data and machine learning to define risk, Verikai will is planning to use the funding to build out their corporate structure with a strong focus on expanding their sales and marketing resources.

The additional Series A investors include ValueStream Ventures and Plug N Play. The Series A round of funding follows a seed investment round in early 2018. Seed investors also included Aioi Nissay Dowa Insurance Company Limited and National General Insurance.

Verikai is known for helping insurers close the gaps between underwriting and actuarial processes through a proprietary applied data platform. And data analysis and insight are directly served through a real time API into the underwriting workflow.

With gaps between risk and rate accounted for down to the individual and group level, carriers and producers are able to align on rates and risk without increasing the underwriting burden. And the amount of profitable new premium written increases, all while expanding available rates and products to small businesses and individuals.

KEY QUOTES:

“The strong interest from the VC community signals a realization that differentiated underwriting and applied data are now necessities for insurers seeking profitable new premium. This funding will allow us to build out a marketplace infrastructure where risk and rate can be fundamentally aligned between distributors and carriers. Ultimately, this alignment allows employers and individuals with positive behavioral attributes to receive the rate relief they deserve.”

— Hari Sundram, co-founder and CEO of Verikai

“Verikai leverages alternative data on individual behaviors, along with the largest set of carrier-informed underwriting outcomes, then calibrates and trains it with their machine learning-informed modeling to create an ultra-accurate prediction of future claims. Insurtech is our core focus and we are excited to back a company with such a strong product-market fit.” 

— Matt Kinley, co-founder and managing partner of ManchesterStory