- US insurance giant Geico has selected Tractable to expedite its repairs assessment and claims processing.
- This is a a big win that the UK insurtech will likely seek to repeat with additional US incumbent partnerships.
The UK-based insurtech secured US
giant Geico as its newest incumbent partner, per AltFi. Tractable’s AI solution uses computer vision technology to rapidly evaluate photos of vehicle damage—instead of relying on a physical human appraisal—increasing the accuracy of damage estimates and expediting the policyholder claims journey. Tractable will enable faster claims payouts and digitized vehicle damage assessment for 28 million vehicles Geico insures across the US.
Tractable’s strong growth trajectory is due in part to its sustained onboarding of big-hitter insurance partners. Large global insurers that have partnered with Tractable include Spain-based Admiral Seguros and Japanese insurance outfit Mitsui Sumitomo Insurance in 2020.
The UK insurtech also expanded existing partnerships with Japan-based Tokio Marine and French insurer Covéa last year. Insurers’ accelerated digitization amid pandemic disruption seems to have helped Tractable double its revenues in 2020.
The big win with Geico underlines opportunities available to Tractable within the US property and casualty (P&C) market.
- US P&C insurers need to step up their game through an enhanced digital experience. It’s a highly competitive market: State Farm, the largest insurer by premiums, controls just 9.3% of market share. The pandemic has exacerbated competitive pressures: US P&C policyholders shopped around more and switched carriers more frequently in 2020. What’s more, recent survey data shows that incumbents are missing the mark when it comes to delivering the expected digital experience.
- As a result, incumbents are growing their tech spend, and Tractable’s cost-efficient solution will stand out as an attractive way to boost the customer experience. US P&C insurers’ technology investments are forecast to grow at a compound annual growth rate of 7.5% between 2020 and 2024, which will outstrip the spend growth of fellow P&C firms in insurance hotbeds, the UK and Canada. Thus, incumbents in the US P&C insurance market represent a profitable growth vector for insurtechs that can keep abreast of evolving digital customer demands. Adding to its appeal, Tractable’s solution also has the capacity to drive operational efficiencies, reducing the cost to serve, which insurers can pass onto their customers through lower prices—the most significant customer acquisition and attrition factor.
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