Pay-per-mile car insurance company Metromile raises $90 million to automate the claims process
In View Summary
Metromile, a well know usage-based car insurance startups has raised $90mn in a series E funding co-led by Tokio Marine Holdings and Intact Financial. Metromile allows drivers to pay based their number of hours on the road. With the new cash injection, it plans to expand its service and double down on investments in artificial intelligence (AI).
Dan Preston, CEO Metromile has said of this latest funding round: “This [investment] allows us to advance our use of sensors and automation to provide Metromile customers with the world’s simplest claims experience while lowering the cost of car insurance and bringing technology to the forefront of the insurance industry.”
Metromile’s AVA System
In 2017, it launched AVA, an AI-based automated assistant that uses car sensor data to verify insurance claims on the spot. Using data derived from Pulse (a device that monitors a car’s hours on the road) Ava to establish what happened in the aftermath of minor accidents and automatically settle claims. This latest investment will be used to revolutionize its pay-per-mile model and fully automate claims for its customers by leveraging the power of AVA, its AI-based claims system.
Makoto Okada, Group Chief Digital Officer of Tokio Marine Holdings has said of this investment: “Metromile is truly transforming the insurance industry with their technological infrastructure that combines machine learning and data to build the most seamless customer experience.”
Benefits to Customers:
Lesser errors and frauds
Improved customer service
Benefits to the Insurer:
Low operational costs
Improved customer engagement and engagement
The Digital Insurer's View
The Insurance industry is on a verge of huge, tech-driven shift with the adoption of Artificial Intelligence (AI) which is quite evident with the introduction of AI humanoid called Sophi. The marriage of AI with insurers datasets holds huge promise and this initiative by Metromile’s new business model is an interesting example of an AI-based use case that could relieve insurers of the often painstaking process of claims settlement and loss adjustment.