The global insurance industry is now embracing digitisation, to both reduce operating costs in a competitive market, but also to meet consumer expectation for mobile digital services. In an industry increasingly forced to compete on cost, digital technologies are the new methods of achieving competitive differentiation.
Prominent within this InsureTech disruption is RightIndem, a UK company automating claims processes for some of the World’s largest insurance organisations, to allow settlement of low to mid-value claims within hours – not days, weeks or even months!
Using smart software, RightIndem’s white-labeled platform automates self-service ‘claim journeys’ to enable more consistent and accurate claims decisions, and deliver significantly better customer experiences, lower operational costs, and ultimately more accurate and fairer indemnity spend.
The company was incorporated in January 2016 and graduated from the first insurtech cohort at StartupBootcamp in London. A total of £800,000 was raised under SEIS and EIS in September 2016. A further £2 million was raised in convertible loan notes.
To address a number of challenges, the business put a new management team in place in 2019 who ‘re-platformed’ the product, proposition and organisation such that it is now poised for market success in 2020 and beyond.
RightIndem develops and sells its own proprietary cloud-based digital claim process management software ‘as a service’ to the global insurance market. The offering is being adopted by insurers, managing general agents , brokers and third party administrators. The software is ‘smart’ using artificial intelligence and rules engines to address the entirety of the claim from first notification of loss all the way through to settlement.
The business is targeting rapid growth over the next two years based on a a ‘fee per claim’ business model and plans to achieve a recurring run rate of 10,000 plus claims per month by the end of calendar 2021. A key attribute of the system is its ability to integrate itself into existing ‘systems of record’ and more importantly, can add in ‘point solutions’ so that RightIndem orchestrates the entire customer claim experience.
Insurers like the platform because it augments (not replaces) existing, largely ‘analogue’ claim processes by providing automated streamlined self-service ‘claim journeys’ for customers that result in more efficient, consistent and accurate claims decisions, delivering significantly better customer experience, lower operational costs, and ultimately more accurate and fairer indemnity spend.
RightIndem seeks to reduce an insurer’s cost of administering a claim (typical current claim admin costs are c. £90 per claim – RightIndem charges c. £10 per claim) while also reducing the incidence of fraudulent claims and wrongly paid claims.
Now, RightIndem Limited is seeking an equity investment round of up to £1 million under EIS to support market expansion, at a pre-money valuation of £9 million. Symvan Capital already pledged £200,000 to participate in this round.
Please note, the share price is £3.525 per share, however, for the purposes of platform functionality investors through Shadow Foundr are buying multiples of 2 shares, hence £7.05.
This investment would be a precursor to a Series A, investment round in the fourth quarter of 2020 at a valuation in excess of £20 million providing investors with a short-term value uplift.