We are very pleased to announce our investment in Akur8, a provider of next generation actuarial software to the P&C and health insurance industries.
Across industries, machine learning (ML) has transformed companies' analytical processes by allowing them to sift through very large amounts data, discern patterns and correlations not visible to humans, and in turn make decisions based on those findings.
Most ML models are, however, "black boxes" where a user cannot understand how an algorithm has reached a decision. In the context of insurance where an audit trail is essential in order to explain underwriting and pricing decisions both internally and to regulators, black box ML models are non-starters. Analytical transparency is one of the key attributes of Akur8's revolutionary actuarial software.
Akur8's SaaS platform allows insurance companies to harness the analytical power of ML while delivering an explainable model that can show how each rating factor ultimately contributes to a pricing decision. The system is designed with the computational advantages of operating in the cloud in mind, allowing for a massive increase in speed (10x) and analytical agility. Legacy actuarial models are slow and clunky in comparison.
The Company was founded by Sam Falmagne (CEO) and Guillaume Beraud-Sudreau (Chief Actuary) who bring deep expertise in enterprise software and IT, insurance and machine learning. Sam was with IBM for 17 years and then head of sales at Shift Technology. Guillaume was at Axa where prior to starting Akur8, he was Head of R&D at Axa Global Direct. We are impressed with their combined experience and the high quality team they have already assembled.
MTech Capital led the Company's €8m Series A round with BlackFin Capital Partners. Akur8 is based in Paris and was seeded by Kamet Ventures. MTech will have a board seat.
Kevin McLoughlin, partner and co-founder of MTech Capital, said: “Our investment thesis is centered around backing visionary founders with the ambition to transform insurance through the use of technology. We are proud to be backing Akur8 as a unique player solving a critical issue for the entire industry.”