Greenlight Re Innovations, part of the specialist hedge fund-backed property and casualty reinsurer Greenlight Capital Re, has announced a strategic investment in FairClaims, an online insurance and consumer dispute resolution start-up.
Based in Los Angeles, FairClaims has developed an online system that helps claimants to drive settlement via negotiation and mediation.
It also aims to help insurers reduce claims litigation, improve their customers’ experience, and strengthen their Net Promoter Score.
“The U.S. property and casualty insurance industry alone spends nearly $30 billion annually to defend claims,” said Simon Burton, Chief Executive Officer (CEO) at Greenlight Re.
“It is widely recognised that current methods for resolving insurance disputes in the US are time-consuming, inefficient, and expensive,” he explained. “FairClaims is a technology-driven solution to this problem that delivers real benefits to all stakeholders in the claims process.”
“We are very excited to partner with Stephen Kane and the FairClaims team on their vision for improving the claims experience.”
Stephen Kane, Founder and CEO at FairClaims, also commented: “Greenlight Re’s investment will allow us to accelerate our expansion into the insurance industry, and we’re thrilled to be working with them.”
“Consumers and insurance companies alike benefit from increased transparency and greater efficiency in claims resolution. And while carriers are quite experienced at handling claims, our platform empowers consumers to directly submit and manage their own claims while feeling heard,” he continued.
“As a third party, neutral dispute resolution platform we provide an alternative to litigation for claims. We hope this means more consumers can get a fair settlement more quickly while insurance companies benefit from shorter cycle times, less overhead and more brand affinity.”
FairClaims is the sixth insurance technology business which Greenlight Re Innovations has invested in since it was set up in March 2018.