FRISS, which provides automated fraud and risk detection technology for property and casualty insurance companies, raises $65M Series B led by Accel-KKR (Vishal Singh/Silicon Canals)
FRISS, which provides automated fraud and risk detection technology for property and casualty insurance companies, raises $65M Series B led by Accel-KKR — Dutch and US-based FRISS is a cybersecurity company that focuses completely on automated fraud and risk detection for P&C insurance companies across the world.
An insurance fraud detection software company out of the Netherlands and the United States has secured a €54.8M grant to develop its tools
FRISS is a cybersecurity company based in the Netherlands and the United States that specializes completely in automated fraud detection and risk detection for property and casualty insurance companies around the world.
Announcing the completion of its Series B round of funding today, the company announced that it has secured $65M (approximately €54.82M) in funding. In addition to Accel-KKR, FT Partners advised the round, and existing investor Aquiline was one of the investors who supported it.
It is a technology-focused investment firm headquartered in Menlo Park, with offices in Atlanta and London, and has over $10 billion in capital commitments (nearly €8.43 billion) under its belt
Software that detects fraud in the insurance industry
As reported by the Coalition Against Insurance Fraud, “It is estimated that insurance fraud accounts for between 10 and 17% of all claims paid to insurers each and every year. This would translate into a staggering $80 billion loss in the US insurance market alone each year.”
For insurance companies in the P&C industry, FRISS is a system that automates fraud and risk detection. With more than 200 insurers using the company’s AI-based detection solutions for underwriting, claims, and the Special Investigative Unit (SIU), they have grown their business by more than 20 percent.
Detecting fraud, mitigating risk, and supporting digital transformation are all functions the company successfully performs. Based on the company’s claims, insurers typically go live within four months, achieve a 10 times return on investment, and experience an 80 percent increase in straight-through processing of policy applications and claims within six months after going live. As a result of FRISS solutions, loss ratios can be lower, portfolios can grow in a profitable manner, as well as customer experience can be improved.
We have been operating since 2006 as FRISS, which is owned by Jeroen Morrenhof and Christian van Leeuwen. The company serves insurers in more than 40 countries right now, and it is on track to save insurers over $2B in fraud savings by the end of the year 2021 alone.
What is FRISS and how does it work?
FRISS provides integrated real-time fraud analytics solutions that cross-reference the complete policy lifecycle of a P&C insurance policy. This includes fraud detection and management during the claim process, and automation of underwriting risk assessments.
There are multiple systems that have been integrated into the Alerts system, including Guidewire, Duck Creek, Sapiens, Keylane, to show the risks attached to each policy request, renewal request, or claim request, and additional information can be pulled from a multitude of available data points to show the key information.
A co-founder and the chief technology officer of FRISS, Christian van Leeuwen, has described how the insurance industry is facing challenges on many fronts, such as increasing costs, a need to improve efficiency and automation, and ever-rising consumer expectations for personalised service at a rapid pace. A number of these challenges can be addressed by FRISS by tapping into the power of digital transformation and using sophisticated artificial intelligence to automate complex workflows at scale. By doing so, we are able to illuminate risks at both underwriting and claims, while also improving the processes for carriers’ employees, as well as their customers.
Innovation funds for the development of new products
In this round of funding, FRISS will be able to invest in additional product innovations, make deep market penetrations, and expand its lines of business as a result of the proceeds.
There are regional offices in DACH and LatAm regions along with offices in the UK, France, and Spain for FRISS, which has its headquarters in Utrecht (Netherlands) and Mason (Ohio). The capital provided by the current round of financing will ensure that the company is able to support its expansion here in these markets and beyond, as well as drive additional growth in its existing customer base by providing new products that are powered by artificial intelligence of the next generation.
“We have been in business for 15 years and have completed more than 200 implementations in that time,” says Jeroen Morrenhof, CEO and co-founder of FRISS. As a software company with the backing of Accel-KKR and all the knowledge that we have gained through our years of experience in the industry, FRISS is ready to scale exponentially through our Series B round of funding, taking our mission to the next level, accelerating the safe digital transformation of the insurance lifecycle as a whole, bringing all of our members along for the journey to honesty in insurance.