Our investment in ClaimSorted: pioneering the future of claims administration
Claiming a seat on ClaimSorted’s journey to redefine claims handling
We’re excited to announce our $13.3 million seed investment in ClaimSorted led by Atomico, joined by Eurazeo, with Y Combinator and Firstminute Capital following on as existing investors and early backers of the company.
ClaimSorted is pioneering the future of claims administration and with it, a new category of AI-native businesses we call Service-as-a-Software.
Why Now: “Service-as-a-Software” is redefining vertical software
We’re entering the next wave of vertical software, one in which AI-native companies don’t just build tools for an industry, they become the industry.
These businesses deliver services that were previously manual or human-led through software-driven, AI-powered processes. The shift goes beyond automation: it represents a fundamental re-architecture of how service businesses are built and operated.
LLMs and multi-agent systems can now execute unstructured, communication-heavy tasks reading emails, filling forms, coordinating stakeholders that traditional RPA or scripted logic could never handle. This opens a vast new surface area for automation across service workflows.
Unlike software vendors that sell tools and rely on customer adoption, Service-as-a-Software players own the full service lifecycle. They control pricing, user experience, and outcomes, allowing continuous, compounding gains in quality and efficiency.
Because they touch the end user directly, these companies generate rich proprietary data on workflows, behaviors, and edge cases. That data trains domain-specific agents and reinforces defensibility.
The implication is profound: this opportunity extends far beyond software budgets. The global services economy is 15–20 times larger than the software market, and AI-native models can now participate in — and capture — that spend.
Why claims: A perfect fit for the service automation thesis
Third-party administration (TPA) is a textbook case for this model: communication-intensive, rules-based, and largely manual. The global TPA market, valued at $390 billion in 2024, is projected to reach $812 billion by 2032. Yet despite its scale, the core processes: claims intake, validation, routing, and approval remain dominated by manual coordination across fragmented systems.
AI agents can orchestrate these interactions asynchronously, apply codified rulesets, and learn from every processed claim — driving a self-improving workflow flywheel.
Meanwhile, the industry is under mounting pressure:
Rising costs and talent shortages: Up to 50 % of the insurance workforce is set to retire by 2037.
Service quality gaps: One in three policyholders report dissatisfaction with claims experiences, mostly due to slow resolution times.
Limited technology impact: While 80 % of claims executives believe AI can add value, fewer than half rate their organisations as advanced in applying it.
These dynamics create a perfect storm for an AI-native entrant that can deliver speed, transparency, and cost efficiency from day one.
Why ClaimSorted: Step-change ROI, not incremental gain
ClaimSorted’s platform automates the most time-consuming elements of claims handling — from document ingestion to decision workflows — while keeping targeted human oversight for accuracy and empathy.
Across customers, the impact is tangible:
Cycle-time reductions of 50% +
10-point NPS uplift for major carrier partners
Granular, real-time claims data enabling better cost control and underwriting performance
Clients describe ClaimSorted as “faster, more transparent, and more adaptable” than legacy providers
Because ClaimSorted owns the full stack — from automation to service delivery — every claim processed strengthens its dataset, optimises its models, and improves future performance. That compounding loop is at the core of why this model scales so efficiently.
All of the above is what makes insurance executives happy. But what really matters is the experience for the end customer: A fast and fair insurance claims process.
Why Them: Founders at the centre
At the heart of ClaimSorted are its founders, Pavel and German, whose blend of deep industry insight and technical excellence defines the company’s edge.
Pavel, CEO, previously built and exited Fluffy, a pet-insurance MGA acquired by Zurich Insurance. He’s deeply embedded in the insurance ecosystem, known for focus, resourcefulness, and building trust with carriers and partners.
German, CTO, built Fluffy with Pavel. He is a world-class engineer who previously developed infrastructure at Deutsche Bank, including core systems used by Apple Pay.
Customers consistently highlight their hands-on engagement and responsiveness. References describe them as intense, fast-learning, and deeply customer-driven — the kind of founders who iterate faster than the market and lead from the front.
And yes, these guys are really doing 996. They live and breathe their company, and they are putting their heart and soul into transforming insurance claims to a better experience for everyone.
Welcome, ClaimSorted — we’re proud to back you on this mission.
