DGTAL, a Software-as-a-Service (SaaS) platform providing artificial intelligence (AI) powered audit and tools for insurance portfolios, has secured strategic funding of €3m to facilitate the scaling of its pathbreaking technology.
1750 Ventures, the venture capital arm of German VGH Versicherungen, has entered the deal as anchor investor along with Gossmann & Cie. Further shareholders of DGTAL will be Swiss software company DEON and the DGTAL team.
DGTAL started as a project in 2021, and has been developing its technology for more than two years. Launched by a team around Dr. Florian Herzog and Arndt Gossmannd DGTAL started as a project to explore how AI can enable the usage of unstructured data in claims files.
The prototype was successful at demonstrating its ability to extract fundamentally new insights from huge amounts of unstructured data – a paradigm shift for claims management.
For now, DGTAL is offering its technology to audit, evaluate and assess claims portfolios. Claims settlement and the management of it represents a core pillar of each insurance.
It consumes approximately 75% of the premium. The application of AI to this process is expected to generate savings for the industry of more than €100bn and more per year – only in Europe.
Arndt Gossmann, CEO of DGTAL and Managing Partner at Gossmann & Cie. said: “AI will change the way insurance works. I want DGTAL to become a major technology enabler of this paradigm shift.
“The strategic investment of VGH Versicherungen and the financial commitment of my partners at Gossmann & Cie. is great confirmation of what our team has built. Working with investors that know what they are talking about is the best call for action for a CEO. Working with an amazing team to support the change of an entire industry is an honor.”
Chlodwig Reuter, Senior Partner at Gossmann & Cie. commented: “Being well anchored in the insurance community, we see the importance of digital transformations and the power of AI for redefining how insurance works. The investment in DGTAL translates our sector experience and our firm strategic belief in technology.”
Andreas Zipf, Managing Director at 1750 Ventures, stated: “DGTAL is an exceptional company, as it combines in-depth insurance knowledge and a technological advantage of two years in the application of AI. This means an outstanding potential in the new era of AI powered insurance operations.
He added: “The company has processed more than 1 million of claims files. This remarkable journey exemplifies our investment strategy, which involves supporting outstanding founders and entrepreneurial management teams with a strategic roadmap and ambitious growth aspirations. We are pleased to enter this partnership with a new high-calibre shareholder such as Gossmann & Cie. and are looking forward to seeing DGTAL’s continued success.”
