Gradient Ventures backs Axles Plaid for insurance approach to data verification

News Summary

  • There are two growth angles for Axle, including additional lines of insurance, for example, boat, commercial insurance and healthcare, and going horizontal with use cases around other kinds of verification and filing claims.“Insurance data is extremely complex,” Sikand said in an interview.
  • The 1-year-old company developed a universal API for insurance data and is taking an approach of a “Plaid for insurance,” Cameron Duncan, co-founder and CEO of Axle, told TechCrunch.Many insurtechs solve for insurance distribution and policy administration.
  • Earlier this year, State Farm reported that its property and casualty underwriting business took a $13 billion hit in 2022 due to “rapidly increasing claims severity and significant additions to prior accident year incurred claims.”Axle is trying to change that.
  • “Part of our technology is also being the first in the space to really build a standardized way to understand and digest the data.”6 VCs explain why embedded insurance isn’t the only hot opportunity in insurtech
The inability to accurately assess risk for insurance purposes is costing the industry a lot of money. Earlier this year, State Farm reported that its property and casualty underwriting business took [+2363 chars]