Estonian startup DriveX helps to solve insurance claims and prevent fraud
Insurance is one of the most conservative fields and digitization in it has always been very slow due to regulation. However, this has started to change in recent years. The Estonian startup DriveX is developing a technology that uses artificial intelligence to automate the verification of motor vehicles and can detect any damage. It simplifies and speeds up claims, helps prevent insurance fraud, and can save insurance companies billions. The company has now raised $ 1 million from thirty-seven angel investors from Estonia, Czech DEPO Ventures, Plug and Play Ventures from Silicon Valley, Startup Wise Guide, and Fund Fellow Founders.
"Insurance is still not fully digitized or automated by modern technologies. There are not many startups that focus on solving the insurance problem in the financial sector. However, the COVID pandemic has significantly improved and accelerated adoption in the sector. DriveX enables insurance companies to dramatically improve their clients' user experiences and completely automate the vehicle inspection process in the future. ” says Michal Ciffra, partner at DEPO Ventures.
With the help of DriveX, insurance companies can automate basic tasks that would otherwise take their employees a lot of time. This will make it easier for them to manage receivables and detect fraud. All the customer has to do is take a picture of his vehicle. The application on the mobile phone will guide him through all the steps, telling him how to proceed, and what photos to send for evaluation. DriveX uses computer vision to photograph and inspect vehicles. All images are sent to DriveX servers, where all data is checked in real-time. Insurance companies will receive a report of the actual damage to the vehicle.
Rapid growth and expansion into Western Europe
Process automation will enable faster and more convenient sales of vehicle insurance and claims resolution. In addition to saving time, technology will help reduce human error. The company estimates that nearly a billion motor insurance policies are concluded worldwide each year and that hundreds of millions of accidents occur.
"Over the next 18 months, we will at least double the number of inspections. We are about to enter new markets such as Western Europe and others. We are all excited to be able to research and discover other mobility-related industries right now. We plan to launch new functions in which we believe that DEPO Ventures will help us strengthen our strong market position in Central and Eastern Europe and give us insight into the North American market," says Rauno Sigur, Founder of DriveX.
One of the reasons for founding the company was Rauno’s experience associated with a lengthy claim when a different driver backed into his car. Even in modern digital Estonia, he found it very strange to be handed so old-fashioned. Together with his colleagues, they participated in the international Porsche Open Innovation Hackathon competition in 2019 and were the first Estonian team to make it into the top ten out of seven hundred competitors. Gradually, they found that insurance and car rental companies needed to find out quickly and reliably the condition of their vehicles.
The current investment round, in which DriveX got about a million euros, is the second in a row. Besides DEPO Ventures, it also involved the Silicon Valley’s Plug and Play Ventures capital fund, the European Startup Wise Guys accelerator, the Estonian angel investor community Fund Fellow Founders, and others. In December 2020, the startup received over 200,000 euros from angel investors who come from the environment of Estonian unicorns such as Skype, Transferwise, or Bolt. Estonian former Prime Minister Taavi Rõivas, angel fund Lemonade Stand, insurtech expert Risto Rossar, and automotive company Silberauto also joined the investment.