IAG invests in US insurtech Planck
IAG has invested in insurtech Planck via its venture capital arm Firemark Ventures, and says there is potential for the cutting edge technology to be embedded in its CGU and NRMA Insurance brands.
Six of the top ten commercial insurance carriers in the US are signed up to the Planck platform, as are insurers in Europe and Japan, and IAG says its investment supports Planck’s expansion into the Australian and New Zealand commercial insurance market.
New York-based Planck’s underwriting automation platform uses artificial intelligence (AI) and machine learning algorithms for real-time data analysis and risk assessment. It says this streamlines the underwriting process, reducing manual errors.
The investment gives IAG a competitive advantage after the insurtech demonstrated success with other global insurance carriers, IAG Firemark Ventures General Partner Scott Gunther says.
“Planck’s proven technology … could revolutionise our underwriting processes and drive efficiency for our business,” he said. “Having a better understanding of our customers’ risks will lead to improved insurance and risk solutions for commercial customers in our markets.”
Named after Max Planck who originated the concept of quantum theory, the insurtech says it “superpowers” underwriter efficiency and facilitates automation and better-informed decisions.
“Collaboration with leaders in a region, such as IAG, enables us to deliver innovative solutions that will benefit the entire insurance industry,” CEO Elad Tsur said.
Planck says its platform transforms the way insurers manage commercial risk for their customers, and dramatically cuts operation expenses.
“Using just a business name and address, Planck’s AI technology evaluates millions of data points in real-time from across the web, public records, government records and non-indexed sources, and then applies thousands of proprietary deep learning algorithms to transform text, image and video data into relevant insights that accurately assess risk – accelerating submission time, improving customer experience and greatly reducing expenses,” it said.
Results are then analysed according to predefined, customised parameters, providing insurers with “a complete set of insights and freeing up valuable underwriter time”. Assessing risk via automated, accurate data input improves quote to submission time and increases premium accuracy, it says.
Chubb, AIG and Sompo are among Planck customers.
“The platform makes managing risk much faster and more predictable, resulting in increased written premium while reducing loss and expense ratios,” it says.
