Bitesize InsurTech: MotionsCloud
April 13, 2017 George Hanks
MotionsCloud is a mobile and AI claims solution that digitises and automates non-life insurance claims.
Based in Munich, Germany, MotionsCloud’s current focus is property insurance. The company’s cloud-based platform aims to increase the processing speed of property claims by a factor of 8 (shortening the process to just 3 hours).
MotionsCloud, who were founded in 2016, have signed contracts with a small number of TPA’s in Germany.
What does their product do?
The platform enables two things:
- Process automation: At first notification of loss, customers upload media (pictures, videos, texts and audio) to the MotionsCloud platform. The media is immediately processed by MotionsCloud’s AI estimation engine, comparing the claim to those in its database. The estimation is then sent for approval by a claims handler, before payment.
- Digital self-service: For claims that cannot be automated, claimants can use the platform to upload evidence of the incident and claims handlers can use the platform to guide customers around the incident via video call, turning the claimant into claims surveyor. (See our blog on “crowdsourcing claims”)
How does this benefit insurers?
According to MotionsCloud, their platform allows clients to assess claims better, faster and cheaper.
- Better: As with all AI systems (see our AI primer here), the algorithm will improve as time goes on, giving more accurate damage / repair estimates. Furthermore, the company believe customers will appreciate a transparent claims experience.
- Faster: The platform allows simple claims to be paid instantly and information on more complex claims to be collected faster.
- Cheaper: Faster claims resulting from technological efficiencies allow insurers to cut costs
Insurers will use the platform on a pay per claim basis.
The Oxbow Partners view
AI-based technology is only as good as the data that the algorithm ingests. We note that MotionsCloud will need to develop partnerships with multiple claims TPAs or insurers quickly to train its algorithms. In some ways, MotionsCloud is already behind a few companies with similar propositions, for example Tractable and Shift Technologies – but this is a young and large market.
MotionsCloud is also competing with other companies; for example 360Globalnet and RightIndem who provide the digital customer experience and supply-chain services. It will be essential to be razor sharp on the proposition in order to be differentiated. Is the winning proposition digital self-service, a “claims platform” or a specific service in the claims suite (e.g. AI estimation)?
On top of all of this, one has to wonder how long it will take until insurers and claims TPAs wake up to the fact that their claims data is a hugely valuable asset – and the biggest barrier to entry for startups. Will the incumbents continue to partner and share their data, or will they see its proprietary value and build their own propositions?
We believe claims is shaping up to be the primary battleground in InsurTech.