Firstminute Capital led the oversubscribed investment round, with additional backing from Transpose, YCombinator, and Precursor Ventures. According to Tech.eu, notable founders from the InsurTech sector also took part in the financing.

The additional funds will be utilized to further strengthen the capabilities of ClaimSorted's claims platform and to extend the company's operations throughout the US, UK, and Europe.

The company's solution has been warmly accepted by insurers unhappy with their present claims suppliers and is currently being implemented across three major insurance verticals.

The founders of ClaimSorted created the firm in reaction to their personal dissatisfaction with the claims handling process at their former insurance provider.

They depended on third-party claims agents (TPAs) during this period, who frequently made mistakes in reimbursements and prolonged delays by failing to provide adequate service.

The client's complaint over a 30-day payment delay was the turning point, as the TPA rejected the claim and said the consumer should wait longer.

This, together with the finding that 20% of payouts were inaccurate, brought to light the industry's severe inefficiencies.

By offering an AI-driven claims platform that automates repetitive operations and lowers human error while retaining the ability for human intervention in complicated instances, ClaimSorted seeks to address these problems.

This hybrid technique lowers payment mistakes by more than 20% while processing claims much quicker—up to 10 times faster than with standard approaches. Additionally, the business provides underwriting teams with real-time information to aid in the decision-making of insurers.

A senior team with extensive experience in the sector has been established by ClaimSorted. The two main forces behind the company's expansion and innovation are Jim Hageman, popularly known as "AI Jim," the former Chief Claims Officer of Lemonade, and Harriet Parkinson, the former COO of Revolut Insurance.

"Too many insurers are stuck with claims partners who just don't care enough about their customers," said Pavel Gertsberg, co-founder and CEO of ClaimSorted. We have personally felt this frustration. We're developing a system called ClaimSorted that centers the claims process on the needs of the client.

"ClaimSorted is bringing modern software to a major segment of the insurance industry that is dominated by large services companies and has not undergone significant digital transformation," said Sam Endacott, a partner at firstminute Capital. We are eager to see how the group, with their extensive industry knowledge, can automate tiresome, repetitive processes and provide insurance firms and their clients with an improved user experience.

The accomplishment of raising this pre-seed round of investment by ClaimSorted aligns with its goal of revolutionizing the insurance claims sector and putting it in a position to further challenge established systems with its AI-powered methodology.