[Axios] Exclusive: Data and analytics insurtech Vellum Insurance raises $7 million
By Ryan Lawler, author of Axios Pro: Fintech Deals
Vellum Insurance, which provides a data and analytics platform for the insurance and reinsurance industry, has raised a $7 million seed round led by Acrew Capital, the company tells Axios exclusively.
Why it matters: The insurance industry needs a better understanding of data to operate in a rapidly changing risk landscape.
How it works: Vellum's platform uses AI to automatically ingest, validate and aggregate data generated by managing general agents (MGAs) and reinsurance transactions.
- It also provides an intelligence layer to enable real-time risk monitoring, actuarial and underwriting analytics, and financial reporting for reinsurers and carriers.
The big picture: The insurance industry is struggling to adapt to an evolving risk landscape, says Vellum CEO Julianna Muir.
- "We have increasing weather events — hurricanes, floods and wildfires —and all of these will require innovation in order for the insurance industry to provide the right coverage for risks going forward," she says.
- Not being able to price risk correctly can lead to preventable losses and in some cases, carriers being forced to exit unprofitable markets.
Yes, but: Carriers and reinsurers are not taking advantage of data they have to better determine how to profitably operate in that changing environment.
- "Insurance is a world where we always look backward. We have to understand what claims happened... and it takes a very long time to understand what the ultimate profitability of a portfolio would be," Muir says.
- Vellum hopes to improve transparency and risk management by giving carriers and reinsurers leading indicators to monitor the performance of their portfolios in real-time
Of note: Muir spent the previous two decades working in various parts of the insurance and reinsurance industries before founding Vellum, most recently serving as COO at SMB-focused insurtech Attune.
- Flourish Ventures, Fin Capital, Vera Equity, Endurance and 1 Sharpe Ventures also participated in the seed round.
Illustration: Aïda Amer/Axios