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Exclusive: Reserv raises $20 million for AI-driven insurtech software

Oct 3, 2023

Illustration: Gabriella Turrisi/Axios

AI-driven insurtech startup Reserv has raised $20 million in Series A financing led by Altai Ventures and Bain Capital Ventures, the company tells Axios exclusively.

Why it matters: Insurance carriers — and managing general agents (MGAs) who serve them — need new technology to speed up and better understand the claims they process.

How it works: Reserv's software uses generative AI to improve the claims handling process for the insurance industry.

  • It analyzes claims information in real time and automates workflows for insurance carriers and MGAs.
  • The software also alerts claims leaders and underwriters of anomalies as they are identified.

Between the lines: Reserv believes those insights can also provide carriers and MGAs the information to understand data around risk in their policies and claims.

  • "Our value proposition for MGAs is, not only will you get better, faster service from us ... but you'll get every piece of data about the claim. So you can build your own machine learning or NLP models," COO Martha Dreiling says.

The intrigue: Though it now sells to carriers and MGAs, Reserv started as a third-party administrator (TPA) service organization; it now licenses and uses software from its tech division.

  • "In this type of market, where valuations are not as crazy as they used to be, it behooves you to get towards a cash-flow positive business model, and let the software grow at its own pace until it has hit escape velocity," chief executive CJ Przybyl says.

State of play: Reserv's software can be used for a wide range of property and casualty lines of business, including commercial auto, business owners' policies, general liability, professional lines and medical malpractice.

  • The company says cycle times for property and auto claims can be reduced when using its tech.

Of note: Before founding Reserv, Przybyl was president and chief strategy officer of Snapsheet; Dreiling is a former SVP of operations at Rhino Insurance.

  • Other investors in the round include 8VC, Neuberger Berman, Convex Group, Axis Capital, Anthemis Ventures and Arch Capital Group.
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