RiskGenius uses AI to help underwriters ‘read’ and create policies.
The business has two main applications.
First, the company allows insurers to interpret policies at scale, for example allowing them to understand exposure to certain perils (existence or otherwise of terror exclusion) or ensuring compliance with underwriting guidelines.
Second, the platform uses AI to automate the creation of policy documents. RiskGenius finds underwriters a clause that has already been signed off, thereby eliminating a manuscripting process that can otherwise take 5-7 days from drafting to compliance sign-off. A proof of concept with QBE showed that commercial product underwriters who use RiskGenius to create contracts save 750 hours per year – the equivalent of four months.
RiskGenius CEO Chris Cheatham says underwriters can use the time saved to gain an edge over competitors, such as taking on requests from a broker to compare a competitors’ policy with their own.
QBE has now invested in the business, leading a $2.9m funding round in October 2017. It also signed a multi-year contract with QBE North America at the end of 2017; as a result of this, RiskGenius has spent much of the last year uploading QBE’s commercial contracts into its system and training its underwriters on using the platform.
Looking ahead to 2019, the company is negotiating contracts with a number of large North American carriers after conducting proof of concept and pilot studies. It is also eyeing international expansion in Europe and London in particular.
RiskGenius has 19 employees and has raised $5.1m to date. The company expects to be cashflow positive in 2019.
THE OXBOW PARTNERS VIEW
We have talked about the potential of automation in our Bitesize InsurTech post on Eigen Technologies. RiskGenius is interesting because it focuses on policy analysis in particular – unsurprising, perhaps, given that its CEO used to be a lawyer. We like the focus: for example, exposure management is an evolving science with models becoming ever more complicated. Good input data is critical to this analysis.
We also think that RiskGenius’s international expansion will be fruitful. We agree with a comment that Chris made on LinkedIn some time ago after a trip to London: it’s surprising how much manuscripting is still done in the margins of policies. RiskGenius should be the CRO’s best friend.