The startup that adds AI to humanize processes and reduce settlement times arrives in the country

The “insurtech” companies (a name that comes from the combination of the words Insurance & Technology) are growing at an accelerated pace in Argentina and other Latin American markets.

Within this segment, two types of companies stand out:

  • The usual insurance companies, which intend to turn around to adapt to the digital era (as happened with the banks, for example).
  • The new startups, which were born as technology companies.

Dentro de este segundo grupo se destaca la empresa emergente LISA, plataforma diseñada para administrar las actividades y la gestión de los procesos de auto-liquidación de siniestros creada en Chile en 2018 por Gino Bustamante, que se inspiró en una experiencia negativa que atravesó tras sufrir un accidente donde conoció, de primera mano, la falta de humanización en los trámites de las coberturas.

Within this second group, the startup LISA stands out, a platform designed to administer the activities and management of the processes of self-settlement of claims created in Chile in 2018 by Gino Bustamante, who was inspired by a negative experience he went through after suffering an accident where he learned, firsthand, about the lack of humanization in the processing of coverage.

LISA sets foot in the country to revolutionize the insurance world

In an interview with iProUP, the company’s founder and CEO recalls that he encountered very little technology in the sector, a factor that inspired him to create the firm that leads the ecosystem in the region.

“This lack of empathy, along with rudimentary processes, became the opportunity we saw to build LISA. And it became our vision to transform the industry with cutting-edge technology, such as AI and blockchain,” he details.

Therefore, its value proposition is focused on the convenience of interacting digitally, remotely and in less time, with a better user experience, unlike traditional companies, which concentrate their operations in physical channels.

LISA lands in Argentina: how its business model works

Bustamante explains that insurance is a financial product, but that it has little human quality, “and we aim to give it humanity, but from a technological point of view, which may sound dichotomous”.

“In 2020, companies were faced with an almost Darwinian transformation process, where the one that adopted the best was able to survive. We had to accommodate, we acquired speed through technological evolution, such as AI, which helps us to speed up processes. We have a very high volume of information to analyze and that is where the match with AI takes place”, explains LISA’s CEO.

And after jumping the borders of Chile and reaching Colombia, Ecuador, Bolivia and Peru, the startup is closing agreements with different partners in Argentina.

“In LISA we move like Vikings, we go in little boats and feel out the market,” jokes Bustamante when describing the company’s strategy, adding that “we don’t go to markets like crazy, we look for commercial partners.

As a preview, the creator of the insurtech (which spent almost all of June in Argentina), reveals to iProUP that in the coming months they will add agreements with more than four clients: “Our operating model is flexible and technology helped us achieve this. Strategically, we make decisions that are aligned with the regulatory compliance of our clients and Argentina is a key market“.

What’s coming in the insurtech ecosystem: data decentralization

Bustamante sees Blockchain technology as a key anti-fraud security tool for the coming years that will allow users to be the owners of their data.

“Every asset in this digital ledger can provide evidence for companies in the face of a claim and can be shared with other firms. This will make processes much more efficient because the user can have that information in his wallet. Decentralization in insurance is something that is coming,” predicts the expert.

In addition, hand in hand with technology, Lisa’s creator predicts that in the near future there will be a hyper-focusing of services, where companies “will make a personalized value offer to a block, without knowing who the user is. And that is where we as a company want to be present, with technologies oriented to the insurance ecosystem”.

“Crashing the car, facing a fire in our home or having an accident are situations that involve human feelings and emotions, where we seek to count on the support of our contracted insurances, through an agile and comprehensive response, and our technology becomes a great tool and an effective solution for many people, since it provides an agile service that is 100% focused on customer satisfaction”, concludes Bustamante.

The Chilean company LISA Insurtech is part of the group of 12 startups chosen by Zurich worldwide.

  • LISA Insurtech is the only Latin American company selected among 2,600 applicants from around the world.

Santiago, Chile. April 28, 2022. LISA Insurtech, a company that delivers solutions to solve claims processes in an automated way using artificial intelligence, has been selected among 2,600 applicants to be part of the 12 winning startups of the Zurich Innovation Championship. LISA is the only Latin American company that will be part of this important process focused on four business categories: reinvented insurance, prevention and mitigation, simplicity and sustainability.

“The breadth of ideas we received from startups around the world was incredible and gives us a glimpse of what the insurance of tomorrow will look like,” explained Ericson Chan, Chief Information & Digital Officer, Zurich Group. “Our winners have innovative and thoughtful solutions, and we look forward to developing them together to bring new solutions to our customers and simplify the way we interact with them.”

The 12 chosen startups are exploring solutions that include technology to detect and prevent cyberbullying; smartphone access to video-based health and wellness monitoring; tools to measure and reduce the carbon footprint of businesses and individuals; and settling insurance claims automatically using AI and blockchain.

What’s next?

At this time, LISA Insurtech is already working with Zurich to prepare an operational plan for a three-month acceleration phase. During this phase, the 12 startups will receive both financial and non-financial support, such as mentoring from Zurich executives and experts and access to business use cases, after which an implementation phase will bring the successful ideas to life and scale them globally.

“It is news that fills us with pride. It gives us confidence that what we are doing is important and has sustainability. But beyond that, we have great expectations of the process we are initiating and we are prepared to absorb everything we can. It will undoubtedly be a great leap for our company,” says Gino Bustamante, CEO and founder of LISA Insurtech.

The winners in each category are:

  • Reinventing insurance: Caruso, Garanteasy, Keepers.ai
  • Prevention and mitigation: Adapt Ready, Binah.ai, One Concern
  • Simplicity: Anagog, Democrance, LISA Insurtech
  • Sustainability: Deedster, Dynamhex, Salient

LISA Insurtech aims to conquer the U.S. insurance industry after capturing US$ 2.5 million

The startup, which automates the insurance industry with AI, raised capital with the HSC Capital fund.

Transforming the U.S. insurance industry is the new goal of LISA Insurtech, a plan that the Chilean startup is making a reality after raising US$ 2.5 million with the U.S. venture capital fund HSC Capital.

This financing -concreted a couple of months ago, but just communicated exclusively to Startups Latam- is the first of the insurtech that had its genesis in 2018 from a need that its founder, Gino Bustamante detected while working for a developer of digital transformation projects for companies, including insurers. It was then when the entrepreneur noticed the bureaucracy that existed at the time of delivering a response to the customer in case of claims.

“The process is very manual, there are companies that can take more than a month, which is a long time if we consider that a person takes out a policy because they want help immediately, not in months. We saw an unfulfilled promise by the industry and in this search to speed up the claims settlement process, reducing costs, time and increasing user satisfaction, LISA Insurtech was born,” says Bustamante.

Thus, in order to solve this problem, LISA Insurtech developed a platform with Artificial Intelligence (AI) that allows the management of the claim in an automated way, managing to deliver a response to the client in minutes instead of months: “The client notifies that he had a claim and sends evidence, for example, photographs or police documents, then LISA Insurtech receives the background and analyzes them and compensates in two minutes, it does not need to ask for more information from the affected parties. To do this, we have an AI model trained to evaluate the damage”, the entrepreneur explains.

Focus on the United States and new product 

In this context, in November 2021, the startup began moving its headquarter to the United States -specifically to Columbus, Ohio- which they are seeking to reinforce with the new financing.

We want to open this country, we are putting together the team staff, we are in the first conversations with clients. It is a more mature market, covering ten times Latam; it is estimated that there are 5,200 insurance companies and 200 million people who have voluntary insurance”, says Bustamante, who says that they aim to have at least five clients in the North American country by the end of 2022. In addition to the United States, the platform is currently used by multinationals in Chile, Peru, Colombia, Spain and Mexico, in different verticals: the settlement of claims related to home, automobile accidents, and life and health products.

In addition to these new plans, the Chilean company has just been crowned one of the 12 winners of the Zurich Innovation Championship, an innovation contest for startups that received more than 2,600 applicants. Bustamante says that the selected ventures will be part of an acceleration process that will last three months, in which they will receive mentoring from Zurich executives and experts and access to business use cases.

LISA Insurtech helps insurers to humanize processes and reduce settlement times by 80%.

Nowadays, technological development makes it possible to take out a policy through the Internet in just a few minutes. However, the time to collect an insurance policy continues to be a big headache as it is usually a slow and cumbersome procedure, which sometimes remains unfinished. 

The challenge facing insurance companies today is how to accompany their clients in those moments of great vulnerability, when what is needed is a rapid response, but above all an empathetic one.

Within this framework, LISA Insurtech arises, with a platform designed to administer the activities and management of the processes of self-settlement of claims. This startup raises the flag of empathy and disruptive innovation, as it seeks to help insurers to change, to rethink their processes and automate them, through advanced technological solutions, in order to innovate in their developments and provide a quick response to their customers.

The Chilean startup was born in 2018, after a car accident that changed the life of its founder and CEO, Gino Bustamante. Back then, at the time of contacting his insurance company to start handling the claim, the experience was anything but empathetic. “Instead of trying to understand and be sympathetic to what was going on, they kept asking me questions about papers and documents that I couldn’t even get my hands on, because everything was scattered all over the place,” Bustamante says.

This situation led him to become aware of a latent need in the insurance world and he began to work on an automated claims settlement process that would put himself in people’s shoes and solve the problem in the simplest and quickest way possible. Thus, he designed a platform to manage and control the activities and management of the claims settlement process, increasing the efficiency of this process and reducing an average of 80% of the management time. Today he seeks to install this product in the Argentine market accompanied by Eduardo Iglesias, the outstanding businessman and executive, who is an advisor and part of the board of directors of LISA Insurtech.

Artificial Intelligence: the perfect ally to improve the costumer journey

In most sectors, the pandemic highlighted the need to implement technology in daily work processes. The insurance market was no exception: the impossibility of executing its usual data collection procedures, such as visits by a loss adjuster to inspect damage in a claim and face-to-face medical appointments, revealed the immediate need to accelerate the digitization of processes.

The novelty of the solution proposed by LISA Insurtech lies in the fact that thanks to the use of Artificial Intelligence (AI) and automatons, the platform improves the settlement process, shortens response times and automates the processes and communication between liquidator, appraiser and end client. 

LISA Claims, its flagship product, is responsible for resolving a claim in just two minutes, something that could take up to 40 days in a conventional insurance company. This innovative solution is already being implemented by insurers in the United States, Spain, Chile, Peru, Argentina, Bolivia, Mexico, Colombia and plans to continue expanding.

The procedure is very easy: in the event of a claim, each insured client must report all the background information through their cell phone, whether it be photographs of the event, testimonial video of what happened, the sending of receipts and medical examinations, among others. Then, by means of AI, the platform will be in charge of receiving (claim generation, evidence analysis, story analysis and notification to the insurer), analyzing (fraud, policy, coverage) and resolving (economic adjustment letter, settlement report and settlement) the case, just as it is done manually today, but reducing its time by 80%. Once this process is completed, the insurer or LISA Insurtech, if they have agreed to do so, responds with the corresponding premiums and payments to each affected party. 

“Crashing the car, facing a fire in our home or having an accident are situations that involve human feelings and emotions, where we seek to count on the support of our contracted insurances, through an agile and comprehensive response,” Bustamante points out. “This technology has become a great tool and an effective solution for many people, as it provides an agile service that is 100% focused on customer satisfaction,” he concludes.

Chilean startup wins the Zurich Innovation Championship

In its third edition, the Zurich Innovation Championship global competition received approximately 2,600 applications, from which 12 startups were chosen, one of them being Chile’s LISA Insurtech. The selected teams will be able to collaborate on new ways to serve customers, create more frequent and meaningful points of contact with them and challenge the boundaries of insurance.

LISA Insurtech participated in the Local Pitch Day in our country in January of this year, in which it was selected along with Griin.cl, achieving the opportunity to participate in the world final of the competition. The competition had four categories: Simplification, Sustainability, Prevention and Mitigation and Reimagined Insurance. The national startup was selected in Simplification.

After the award ceremony, Ericson Chan, Group Chief Information & Digital Officer of Zurich, mentioned that “the breadth of ideas we received from startups around the world was incredible and gives us a glimpse of what the insurance of tomorrow will look like.”

“Our winners have thoughtful and innovative solutions, and we look forward to developing them together to provide new solutions for our customers and simplify the way we interact with them,” Chan added.

The 12 selected startups are now working with Zurich to prepare an operational plan for a three-month acceleration phase, a new addition to this year’s competition. During this stage, winning companies will benefit from financial and non-financial support, as well as mentoring by Zurich executives and experts and access to business use cases, after which an implementation phase will bring successful ideas to life and scale them globally.

For his part, Stuart Domingos, Head of Group Innovation at Zurich, said: “This is where it gets really exciting as we collaborate to test, grow and execute, enabling joint adoption of the most promising use cases”.

A chilean company wins the Zurich Innovation Championship

LISA Insurtech, one of the companies that represented Zurich Chile was one of the 12 winning startups in the world final of the Zurich Innovation Championship, standing out among more than 2,600 participants.

The startup participated in the Local Pitch Day in our country in January of this year, in which it was selected along with Griin.cl, achieving the opportunity to participate in the world final of the competition. The competition had four categories: Simplification, Sustainability, Prevention and Mitigation and Reimagined Insurance. LISA Insurtech was selected in Simplification.

“The breadth of ideas we received from startups around the world was incredible and gives us a glimpse of what the insurance of tomorrow will look like,” said Ericson Chan, Group Chief Information & Digital Officer at Zurich, following the awards. “Our winners have thoughtful and innovative solutions, and we look forward to developing them together to provide new solutions for our customers and simplify the way we interact with them,” he added.

The 12 selected startups are now working with Zurich to prepare an operational plan for a three-month acceleration phase, a new addition to this year’s competition. During this stage, the winning companies will benefit from financial and non-financial support, as well as mentoring by Zurich executives and experts and access to business use cases, after which an implementation phase will bring the successful ideas to life and scale them globally.

“This is when it gets really exciting as we collaborate to test, grow and execute, something that enables joint adoption of the most promising use cases,” said Stuart Domingos, Head of Group Innovation at Zurich.

LISA Insurtech, AI at the service of people

The first time I met Gino Bustamante, CEO and Founder of LISA Insurtech was in 2019, when everything was just a project. Today LISA Insurtech has become the leading insurtech in the application of artificial intelligence for claims handling. It is not a surprise that we find, once again, HCS Capital (Jooycar, DeNexus, Scadafence, Ceptinel…) as VC to empower this insurtech in Latam, in US and maybe in the future in Europe.

Today I’m meeting again with Gino, a friend of the house and one of the founders of InsurteChile, to talk about what should we expect from LISA Insurtech.

To begin with, I asked Gino to tell us a little about LISA Insurtech, mostly for those who don’t know it yet. Gino tells me: “the name?“, I’ll tell you at the end but it’s only for your audience. Gino starts with Einstein’s famous phrase: “we cannot expect different results if we keep doing things the same way we always have” and he says: “LISA is that. Is supporting insurance carriers to rethink their processes, especially claims, and automate them through advanced technological solutions and artificial intelligence”.

LISA has a very important purpose: “To simplify people’s lives at the time of loss“: to be able to make it possible for all those people who are going through a difficult time, whether because they have had an accident, lost their home, are going through a health difficulty or the loss of a loved one, to access the help and support they need in the easiest and simplest way possible. And this purpose is built together with insurers. Don’t forget that, at the end of the day, what they are doing is improving processes through and thanks to artificial intelligence.

They started in 2019 as three people working in a WeWork, with one client in Chile. Today, two years later, they are more than 40 people managing operations in 16 different parts of the world. “These are exciting times for LISA“, that’s fantastic!

Regarding the pandemic, he tells me that he believes that, due to its particularities, few companies were as prepared as they were to face the challenges it brought. From their origins, they were formed from remote work and with teams in different parts of the world, and they are 100% familiar with all the tools that technology makes available to us to facilitate this way of relating and the processes and indicators that allow us to work with high-performance teams remotely. 

I think everyone is talking about Artificial Intelligence these days, right? That’s why I’m interested to know what distinguishes the AI from LISA. Gino tells me that there are mainly two things. First, it is in house: all the developments have been done by them, which gives them a different ownership of what they are doing than what the market can offer. Second, their flexibility: their solutions adapt and grow with their clients. The most important thing, in his opinion, is to understand that technology today is a commodity. What sets them apart is the knowledge behind that technology and how that allows them to drive a new way of thinking about processes. “That’s where the real change lies and certainly a very powerful and long-necked competitive advantage.” 

They are working with the Embedded Insurance model with LISA Gateway, the most dynamic, versatile and nocode solution to face the new generation of policyholder and industry requirements. It arises from having seen an opportunity in what their customers were telling them about the fact that the current offer does not satisfy them in the pains they are currently having. So they are preparing a more specific suite to the pains that the industry has and they are creating the new generation of automated underwriting, renewal, quoting, issuance and even fraud control. 

They do not lose focus on adding value to the current problems of the industry, therefore, their major investment is in R&D. Talking about IOT in insurance today is a concrete and very advanced topic. At LISA they have launched their applied solution to perform deep and agnostic integration between startups specialized in telemetry and providers of telemetric information sources (such as smartwatches or sensors). In short and simple, with LISA TMT companies will be prepared to face new challenges and products using IOT, such as embedded insurance, usage-based insurance (auto and home), parametric insurance and life and health insurance. They will be put on steroids to accelerate their adoption curve of new business models and time to market.

As a global company, it is important for them to be in all markets. Consolidate in Latin America and open up the United States and Europe. To accelerate their expansion, they benefit from the support of HCS Capital as VC. Their solution generates value in all insurance companies, no matter where they are located. Gino believes that in the US there is more progress than in Latin America with respect to process automation. However, he says that there are shared pain points, which ultimately have to do with the lack of control over the process that claims managers have and that is precisely what LISA seeks to address. 

They were winners of the Zurich Innovation Championship, the great global competition, among other awards they have won. For them these awards are a sign that they are doing things well and internally it is super powerful because it gives them confidence that what they are doing is important and has sustainability. The fact that a company of Zurich’s size is betting on them is a tremendous endorsement, acknowledges Gino. They have tremendous expectations for the process to come: they want to absorb as much as they can. They believe there are no limits to where they can go. “We are very excited”.

At the end of our meeting, he tells me: “so you want to know why we are called LISA?” Waiting with curiosity for his answer, he tells me that they were starting the company “from scratch” and an opportunity came up: they were invited to raise state funds and had to prepare their pitch. They were in the ideation and construction phase and, therefore, without a name yet. To participate, they had to present the project in less than 24 hours, and that was when, with their pragmatic minds, they thought: “We settle claims in an automated way with Artificial Intelligence” and that is how the acronym LISA was born, in spanish that means: LIquidación de Siniestros Automatizados con inteligencia artificial (Liquidation of Automated Claims with Artificial Intelligence). “There is no better name than LISA,” he says proudly. 

LISA Insurtech to contact quickly and follow closely…

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80% less waiting time in Insurance Settlement

A platform will enable insurers to reduce their settlement costs by 60% and thus enable clients to have a response in a much shorter time.

When it is time to collect on the policy and enforce the insurance clauses, customers face a slow and cumbersome procedure that is often left unfinished. To solve this, Napkin Labs (www.napkinlabs.tech) created LISA, a platform designed to manage the activities and management of the auto-settlement process, promising to reduce customer waiting times by 80%.

According to the Chilean Superintendency of Securities and Insurance, the premiums with the highest insurance participation are: motor vehicles (30.2% of sales); earthquake (19.2%), and fire (10.8%); followed by unemployment insurance (7.2%); guarantee and credit (5.1%), civil liability (4.3%); and personal accidents (3.5%).

The first step to collect on an insurance policy is to report the loss so that a settlement report can be made. What does this process mean? The investigation and determination of the circumstance of a loss that establishes whether the cause is covered under the insurance policy contract.

It is during this process that we find the largest number of dissatisfied clients, given the lack of visibility of the liquidation process, generating great frustration,” says Alfredo Muñoz, LISA’s marketing manager.

How does LISA work?

Thanks to the use of Artificial Intelligence (AI), the platform improves the settlement process, shortens response times and automates processes and communication between Liquidator, Appraiser and End Client.

With LISA, what we do is to shorten the payment process for customers. Artificial Intelligence together with the Blockchain we have developed is able to collect the data, analyze it and send it to the insurer, thus preventing all types of fraud and ensuring the privacy of each customer’s information. This way, better rates are predicted and the updated status of the analysis is delivered at all times, so that each client can review it online without the need to contact the insurer, which is usually very tedious,” Muñoz said. 

That said, what each insured client must do is to report through his cell phone all the background information -depending on the type of claim-either photographs of the event, testimonial video telling what happened, sending tickets and medical examinations, among others. Then, the AI platform will be in charge of receiving (claim generation, evidence analysis, report analysis and notification to the insurer), analyzing (fraud, policy, coverage) and resolving (economic adjustment letter, settlement report and settlement) the case as it is done manually today, but reducing its time by 80%. Once this process is completed, the insurance company is in charge of responding with the corresponding premiums to each client.

LISA seeks to shorten insurance settlement waiting times by 80%

One of the biggest headaches faced by some of those who pay month to month for some type of insurance (be it life, health, automobile or any type of claims), is that when the time comes to collect the policy and enforce the clauses, they find a slow and cumbersome procedure that is often left unfinished.

According to the Chilean Superintendency of Securities and Insurance, the premiums with the highest insurance participation are: Motor Vehicles (30.2% of sales); earthquake (19.2%), and fire (10.8%); followed by unemployment insurance (7.2%); guarantee and credit (5.1%), civil liability (4.3%); and personal accidents (3.5%).

Faced with this problem, LISA Insurtech, designed a platform to manage and control the activities and management of the process of self-settlement of claims, which allows the efficiency of this process, gaining on average 80% of management time.

The first step to collect on an insurance policy is to report the loss so that a settlement report can be made. What does this process mean? The investigation and determination of the circumstance of a loss that establishes whether the cause is covered under the insurance policy contract. “It is during this process that we find the greatest number of dissatisfied clients, given the lack of visibility of the settlement process, generating great frustration”, says Alfredo Muñoz, in charge of Marketing at LISA.

How does LISA works?

Thanks to the use of Artificial Intelligence (AI) and Blockchain technology, the platform improves the settlement process, shortens response times and automates processes and communication between liquidator, appraiser and end client.

With LISA, what we do is to shorten the payment process for customers. Artificial Intelligence together with the Blockchain we have developed is able to collect the data, analyze it and send it to the insurer, thus preventing all types of fraud and ensuring the privacy of each customer’s information. This way, better rates are predicted and the updated status of the analysis is delivered at all times, so that each client can review it online without the need to contact the insurer, which is usually very tedious,” Muñoz said.

That said, what each insured client must do is to report through his cell phone all the antecedents -depending on the type of loss-either photographs of the event, video testimonials
of the event, sending of receipts and medical examinations, among others.

Then, the platform through the AI will be in charge of Receiving (Claim Generation, Evidence Analysis, Story Analysis and Notification to the Insurer), Analyzing (Fraud, Policy, Coverage) and (Notification to the Insurer), Analyze (Fraud, Policy, Coverage) and Resolve (Economic Adjustment Letter, Settlement Report and Settlement), the case as it is done today manually, but reducing its time by 80%. manually, but reducing your time by 80%.

Once this process is completed, the insurance company is responsible for responding with the corresponding premiums and payments to each client.