A Chicago-based startup called Snapsheet has raised a Series C round of $20 million to make life easier for people who have been through a car crash.
The company’s cloud-based software is used by auto insurance providers to guide users through a photo- and information-gathering process on the scene of an accident. It is basically white labeled as a mobile app for each auto insurance provider. On the back end, Snapsheet helps the insurance providers virtually process claims without having to send an adjuster to inspect a vehicle.
The startup’s Series C funding came, in part, from big names in the insurance world. The deal was led by F-Prime Capital and IA Capital Group, and joined by strategic backers Fosun Insurance Group, Liberty Mutual Strategic Ventures, Intact Financial Corp. and USAA. The startup has been working with new school insurance carriers like MetroMile and Turo, and has racked up 35 corporate clients so far, according to a company statement.
Snapsheet President CJ Przybyl said claims handling is becoming more sophisticated, thanks to technology like smartphones, crowdsourced photos, telematics and machine learning. It’s integrating all the technology it can into its platform to help insurance providers process claims more quickly, to get their customers paid as soon as possible and back in safe, repaired vehicles. The company will use its new funding for product development, and hiring especially in client support, sales and marketing roles he said.
Although he acknowledged that software like Snapsheet’s could be put to use to help other insurance providers analyze damage to homes or other property, Przybyl said auto claims represent such a huge market, the company won’t seek to expand beyond autos.
“Insurance tech is winner take most for players that really stay focused and understand how important customer service is,” he said.
Snapsheet investor and F-Prime Partner Ben Malka said one big reason his firm backed the company is the effect its technology has on the customers of auto insurance providers.
“People who use Snapsheet in conjunction with their carriers claims process end up with a superior customer experience. NPS scores are significantly better most other claims resolution methods,” he said, referencing the “net promoter scores” of auto insurance providers.
Additionally, he said, Snapsheet is tapping into new willingness on the part of insurance companies to use tech for a competitive advantage. “The insurance sector is embracing innovation more forcefully than in years past,” he said.
Przybyl said one thing Snapsheet intends to develop, given the funding, is machine learning that can predict what a customer’s questions might be, before they ask them, about filing a claim or the status of a claim. With that kind of system in place, the Snapsheet-powered app can deliver information to a customer before they have become anxious about finding it, he said.