It can take weeks for property and casualty insurers to process claims. For consumers who need that money to start rebuilding their life after a loss, every second leads to increased dissatisfaction. German company MotionsCloud is working to reduce that time to approximately three hours with the help of the Global Insurance Accelerator (GIA) in Des Moines.
How MotionsCloud works
MotionsCloud founder and CEO LeX Tan worked as a property and casualty claims representative for more than five years, developing the use of technology to improve the claims process. After becoming frustrated with the bureaucracy of trying to work within the system, Tan founded MotionsCloud in January 2016.
“I experienced the pain as a staff member and a claimant,” Tan said. “The lack of transparency of the claims and the lengthy process makes the claimant feel frustrated about it. The claim processes cost the industry more than 15 percent of the total indemnity payout annually.”
The company uses mobile, AI and video communication platforms to speed up processing claims. The mobile platform lets customers document their loss and go through claims details. The AI uses info from the insurer’s past years along with current data to estimate the cost of the claim based on images, data and a third-party pricing database. For more complicated claims, the agents can use the video communication platform to perform a remote video inspection without leaving the office.
“A claimant can get a notification from their smartphone to launch a remote video inspection and be guided through the process by a claims representative,” Tan said. “The best case is they can close the claim during the video call.”
Working with the Global Insurance Accelerator
GIA managing director Brian Hemesath compared MotionsCloud to another company in the accelerator, Viewspection, but for customers in a different stage of insurance needs.
“Viewspection is dealing with clients pre-losses, while MotionsCloud is on the other end when there’s an accident and it’s time for a claim,” Hemesath said. “There’s plenty of competition for LeX to consider, but this space in insurance is still very new. You can thank the evolution and ubiquity of smartphones for creating a company like MotionsCloud. We have high expectations for the company; there’s no reason not to expect great thanks from MotionsCloud.”
Tan said the GIA has helped MotionsCloud open up options for the German company to be able to compete on a global scale.
“It was extremely valuable for us to learn from the top insurance experts in the region and to learn a lot about the US claims industry, as well as the claims processes in US insurance organizations. The GIA also accelerated connections that we may have made in years to only months.”
After the accelerator
The next step for MotionsCloud is to secure several pilots with US insurers, as well as lining up more clients in Europe and preparing for a fundraising seed round. From there, Tan hopes to start working to improve claims processing for claimants worldwide.
“In the next five years, we hope that MotionsCloud will be processing claims across continents,” Tan said.
Joe Lawler is a freelance reporter based in Des Moines.