AI-Powered Digital Auto Insurance Provider Raises $50M: What the Experts Say

Clearcover, a digital car insurance provider, has recently raised $50 million in a Series C round by Omers Ventures. The Illinois-based startup uses an AI tool trained on millions of data points to match drivers with affordable auto insurance, and to expedite the claims process with immediate disbursements for repairs of accident-related damages.

Anticipating their growth, Clearwater closed the $50 million series C financing, which follows the $43 million series B that raised $43 million back in 2019. So, the firm has raised approximately $108 million in total. The market is observing how Clearcover is redesigning the model of running an insurance company to further service its clients.

The goal is to help customers save on car insurance. Statistics show that 90% of policyholders prefer using an app to service their policy. Thus, Clearcover services are 20% lower than the industry’s average.  They also offer lower rates for vehicles equipped with innovative safety technology, provide policyholders with funds for bikes or rideshares, and assign most policy management tasks to its App for Android and iOS.

The insurance tech market is on the rise. Last year alone, a $2.5 billion went to United States startup deals, so Clearcover clearly has plenty of competition. Another tech startup based in Columbus that used smartphones to study how well a driver drives brought in $350 million at a $3.65 billion valuation last year. Also, a pay-per-mile auto insurance company, which automates the claims process using AI, secured $90 million last year as well.

Insurance experts believe that taking advantage of technology to enhance the customer’s experience is a good thing, but there is always the need for good old-fashioned customer service as a backup and a form of human support. Connecting with clients takes both technology and the human factor. When a company engages with its clients, they build stronger relationships and boost customer loyalty.

By following the basis of customer service and using technology, issues can be resolved in a prompt manner, customers are more engaged, and stronger relationships that last are built – the best of both worlds. Artificial Intelligence (AI) needs all the data, and a seamless front-end/human experience to train it. So, management isn’t over, and people aren’t losing their jobs – you may work hand-in-hand with AI.

The ultimate goal is to help busy call centers, so they don’t have to struggle with wait times. Some questions that aren’t too complex can be handled by AI, and a live rep can step in and address the issue.  Artificial intelligence uses data to find the best representative available to meet the clients’ needs. Technology can be seamlessly integrated with the customers’ account information, so they can inquire or receive after-hours support service.

Artificial intelligence had initially stepped in when clients could speak their needs rather than pressing a number – quite frustrating. It has helped different departments streamline their work. Now, agents can focus on complex issues with AI-enabled technology. With the right tools, insurance brokers can be more productive and efficient as they spend more time on responsibilities that add value to the company. However, like everything out there, it’s a work in progress. No matter how technology evolves, we are always gonna need insurance agents.

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