Five Sigma, an Israeli insurtech startup that offers a claims platform, has raised $12 million in a Series A round led by 83North and featuring existing investors F2 Venture Capital and Pipeline Capital. This round of funding brings total investment in Five Sigma to $18 million to date.
According to Investopedia, insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. Insurtech is a combination of the words “insurance” and “technology,” inspired by the term fintech.
There have been a number of Israeli insurtech startups bringing in the money these days. Just a few weeks ago, Sayata, an Israeli insuretech startup that offers a solution for insurance brokers and carriers to grow their business insurance portfolios, raised $17 million in series A funding. The company declares that it delivers rapid growth to insurance brokers and carriers that focus on small-to-medium businesses. The Sayata platform streamlines the quote-bind-issue process allowing insurance professionals to seamlessly place more insurance policies in a fraction of the time.
Also in August, Vesttoo , an Israeli insurtech startup that has developed technology in the field of risk management, completed a $6 million funding round. Founded in 2018 by CEO Yaniv Bertele, CPO Alon Lifshitz, and CTO Ben Zickel, Vesttoo specializes in data-driven risk management solutions for the P&C and longevity markets, using “cutting-edge technologies to transfer General Insurance, Lapse, and Longevity risk to the capital markets.”
Antidote Health, a supplier of telehealth services, raised $12 million in seed funding last month to establish an artificial intelligence-powered virtual Health Maintenance Organization (HMO).
So, what does Five Sigma do that is Unique?
Founded in 2017, Five Sigma is developing and delivering an end-to-end claims resolution platform for the P and C personal and commercial market. The platform, says the company, addresses all aspects of claims management including claim intake/First Notice of Loss (FNOL), coverage, liability, financials (reserving and payments), recovery and quality assurance – all designed to “improve claims accuracy, enhancing policyholders’ experience, ensure compliance and operational productivity and making claims-data readily available within an insurer’s ecosystem for AI/ML, risk selection & other purposes.”
Five Sigma CEO and co-founder, Oded Barak said, “Our extraordinary team possesses deep domain and tech expertise, coupled with unique capabilities including rapid configurable digital claim workflows, the enablement of a high degree of automation throughout the claim lifecycle, and the smart utilization of claims-data. These attributes empower our customers with rapid innovation, and enhanced performance operationally and strategically, delivering on the need for a flexible, cloud-native solution that leverages claims data in new, innovative ways.”
“Quick innovation of business models, fast time to value and better business efficiencies requires data driven, flexible platforms. This is key for the future success of any insurance company,” said Yoram Snir of 83North. “Five Sigma’s traction, accelerated growth and excellent market feedback is testament to the market demand and the company is revolutionizing the insurance claims market.”