(Image source: CLARA analytics website.)
CLARA analytics (Santa Clara, Calif.), a vendor specializing in building easy-to-use AI-based solutions focused on claims operations for the property/casualty and disability insurance industries, has closed $11.5 million Series A funding round led by Oak HC/FT. CLARA characterizes its solutions as aimed at reducing claims leakage. As a result of the funding round, Andrew Robinson, an executive in residence at Oak HC/FT, will be joining CLARA as chairman, and Matt Streisfeld, a principal at Oak/FT, will join the board of directors.
CLARA’s solutions are used in workers’ compensation claims organizations to improve the medical management of claimants while simultaneously reducing the costs of claims with easy-to-use AI-based solutions, CLARA providers and CLARA claims, the vendor says. CLARA says that its advanced analytic solutions incorporate the latest in AI technology to reduce claims leakage and frictional costs for insurance companies and self-insured corporations by doing the following, according to the vendor’s description:
- Detecting (early) potential litigation and optimizing legal representation to improve outcomes and reduce defense expenses.
- Connecting claims to the right providers to reduce indemnity costs.
- Ensuring optimal treatment protocol is followed to reduce medical costs and lost time for injured workers.
- Ensuring appropriate claims resource(s) from the outset are aligned based on claims complexity to improve outcomes.
- Enabling the organization to leverage machine learning to scale the best practices of senior adjusters and managers to the broader organization to improve overall performance.
CLARA reports that its customers range from market-leading and small specialty focused carriers to self-insureds and TPAs. The solutions are currently focused on workers’ compensation but will soon extend to other lines like commercial auto, general and professional liability as well as disability, the vendor says.
Investor Interest in AI for Claims Leakage
“Insightful investors are increasingly funding AI solutions that can manage claims and contain leakage significantly better than current practice,” comments Stephen Applebaum, Managing Partner, Insurance Solutions Group. “Workers’ compensation is one of the more opportunistic areas in which to deploy these tools.”
Robinson, CLARA’s new chairman, characterizes CLARA as a “first mover” in utilizing AI to dramatically improve claims outcomes for the P&C industry. “Their technology is highly advanced and has already driven strong ROI for its customers by reducing up to 10 percent of claims indemnity and loss adjustment expenses,” he says. “We look forward to partnering with CLARA in building their business and to continue to develop and mature solutions for other property and casualty lines of business.”
CLARA combines the latest in AI technology, extensive insurance industry expertise, and a design thinking approach to rapidly drive meaningful value for its customers, asserts Jayant Lakshmikanthan, founder and CEO, CLARA analytics. “We are excited to welcome Oak HC/FT to the team and look forward to leveraging their extensive insurance and insurtech expertise.”
Oak HC/FT is a venture growth-equity fund specializing in Healthcare Information & Services (HC) and Financial Services Technology (FT). The fund and its investors position themselves as offering deep domain experience and uniquely positioning to provide entrepreneurs and companies with strategic counsel, board-level participation, and access to an extensive network of industry leaders.