Firemark Ventures, a corporate venture capital fund that is part of Insurance Australia Group's (IAG) innovation and venturing hub, has launched its second $75 million venture capital fund to invest in artificial intelligence (AI) insurtech provider PInar.
Fund Two, the second fund created under Firemark Ventures, aims to partner with and invest in start-ups that have the potential to enhance IAG's insurance delivery.
Plnar, the first investment by Firemark Ventures under Fund Two, uses computer imagery to create 3D renderings of home interiors, allowing anyone with a smartphone to document interior property damage, enabling virtual and self-serve property claims.
As part of the investment, IAG and Plnar will explore how imagery, data, and AI can help create differentiated customer claims experiences – with the $75 million to be used over the next five years and built on the strategic and financial success of the company's initial $75 million fund.
“Plnar's technology has the potential to enhance how we interact with our customers by dramatically streamlining the claims assessment process. In less than two minutes per room, customers and our assessors can capture all the insights they need to determine what's required to repair the damage,” said IAG Firemark Ventures general partner Scott Gunther.
PInar CEO Andy Greff said the investment enables the insurtech's brands to complete contactless inspections for interior property claims, resulting in significantly better customer experiences, shorter cycle times, and lower costs.
“More than 25 insurance carriers and third-party administrators are using Plnar with great success globally. These carriers have experienced cycle times reduced by more than 80% compared to their traditional claims operating models. We look forward to the impact Plnar can have on the claims operating models with IAG in Australia and New Zealand,” Greff added.
To date, Firemark Ventures has made 33 investments across 18 portfolio companies and embedded 13 new technologies and data capabilities within IAG, following successful internal trials. In addition, IAG is the first company to invest in Plnar outside the USA, bringing the technology to Australia and New Zealand for the first time.
Commenting on the second fund, Gunther said: “The establishment of Firemark Ventures' Fund Two means we can continue to grow our portfolio of local and international start-ups and invest more in existing portfolio companies to deliver new and ongoing benefits to IAG.”
Firemark Ventures' latest investment follows the IAG-led $28.9 million funding round for Carbar, Australia's first car subscription company.
Luke Gallagher, executive general manager of direct claims at IAG, said the insurance giant is always looking at the latest innovations and technology to provide the best customer experience.
“We introduced virtual assessing at the start of the pandemic, which allowed us to assess damage to a customer's property via video call,” he said. “Our partnership with Plnar will take this highly efficient digital experience for our customers to the next level.”
