ClaimSorted raises $3M to expedite insurance claim processing

ClaimSorted, a company dedicated to simplifying claims processing for insurers, has secured $3 million in pre-seed funding. The oversubscribed round was led by Firstminute capital, with participation from YCombinator, Precursor Ventures, and Transpose. Prominent InsurTech founders also joined the round.

The founders of ClaimSorted experienced firsthand the frustrations of claims processing while running their own insurance company. They relied on third-party claims agencies (TPAs) to handle claims, but the complaints never stopped. One day, a distressed customer called, saying they had been waiting 30 days for a payment. When the founders contacted their TPA about the delay, they were shocked by the response: "It's ONLY been 30 days—your customer can wait." 

They also discovered that TPAs made frequent errors, with nearly 20% of payouts being incorrect, leading to wasted money. To recover these costs, insurers often had to raise prices for their customers.

They realized the industry was broken: insurers were relying on third-party providers who couldn’t even fulfill the core task they were hired to do. ClaimSorted is building a different kind of claims service—one that automates some of the processes using AI, while also empowering human handlers to manage the complex cases that need personal attention. This approach not only speeds up the process but also reduces errors, giving insurers and their customers a much better experience.

Insurers spend over $200 billion a year on claims agencies, and many are dissatisfied with the service they receive. ClaimSorted offers a better option, already operating in the US, UK, and Europe across three insurance verticals. 

Their solution can deliver much better customer experience and process claims three, and sometimes even ten times faster while reducing errors in payouts by over 20%. On top of that, ClaimSorted provides real-time insights to underwriting teams, helping improve decision-making.

To lead this change, ClaimSorted has assembled a team with deep expertise in the industry. Harriet Parkinson, who previously served as COO of Revolut Insurance, supported insurance services for 45 million customers. Jim Hageman, also known as “AI Jim”, former Chief Claims Officer at Lemonade, oversaw claims operations for 2 million policyholders. Their combined knowledge and experience give ClaimSorted a unique advantage in reshaping claims processing.

Pavel Gertsberg, Co-founder and CEO of ClaimSorted, commented: “Too many insurers are stuck with claims partners who just don’t care enough about their customers. We experienced this frustration firsthand. With ClaimSorted, we’re building a solution that puts their customers at the center of the claims experience.”

Sam Endacott, Partner at firstminute Capital, said: “ClaimSorted is bringing modern software to a major segment of the insurance industry that is yet to undergo significant digital transformation and is dominated by large services companies. We are excited to see how the team with their deep domain expertise can automate away laborious repetitive tasks and deliver a superior user experience to insurance companies and their customers.”