(Image source: Nuon website.)
Nuon AI (Tunbridge Wells, Kent, U.K.) a vendor that applies AI to improve the insurance product lifecycle, has announced an oversubscribed £1m pre-seed round. Nuon extended the round led by Haatch Ventures (Stamford, Lincolnshire, U.K.) to grow the team following earlier-than-expected customer traction in the U.K. and U.S., according to a company statement. Nuon reports that Several high-profile investors and angels supported the round, including: Portfolio Ventures; Chris Adelsbach, partner at Outrun Ventures; Andy Homer, ex-CEO of Towergate Insurance; and Evelyn Bourke, former group CEO of Bupa.
NUON says it has found increasing global interest in its suite of AI products, since launch, collectively aimed at revolutionizing the entire insurance product lifecycle, from pricing and claims to MTAs and renewals.
“We had a great year in 2021. We progressed development with our pricing and claims product and have customer traction in the U.K. and U.S.,” comments Paul Doran, partner, Nuon. “Gaining early customer validation has happened much faster than anticipated, and the extended round means all our focus in 2022 is on product development, expanding our team, and customer growth.”
Nuon’s technology platform uses AI to augment traditional pricing, underwriting, and risk processes. The company says that using its software does not require “ripping” or replacing legacy infrastructure. “At its minimum, insurers make two API calls to benefit from Nuon’s algorithmic, real-time price adjustments,” the Nuon statement says. Nuon uses a branch of AI known as Reinforcement Learning (RL) to make and learn from thousands of micro pricing and product factor adjustments.
“Nuon have demonstrated the benefits of having an established team with deep sector experience,” comments Will Brooks, co-founder of Portfolio Ventures. “We invested in the round as we are active in InsurTech and see huge potential for the application of AI in insurance.”
Good Early Traction in U.S., U.K.
“Nuon is well on the way to revolutionising the insurance industry,” comments Simon Penson, partner, Haatch Ventures. “They have shown that they have been able to get good early traction in the U.S. and U.K. market and we are thrilled to be enabling further growth. It is very rare to find a team that has so much experience together, including successfully exiting businesses. We are delighted to be investing in and working with the team at Nuon.”
Nuon says it will invest the capital to grow operations, sales, marketing, and engineering functions. The team operates a 100 percent distributed model, with a presence in the U.K. and Canada.