Owl.co secures $37M, plans to increase staff by 20% in Canada and US
This latest round of financing brings the company’s overall funding to approximately CAD$50 million.
Vancouver’s owl.co, an insurance claims monitoring platform, secured CAD$37 million in Series-B funding led by Cota Capital. The round also had participation from Sorenson Ventures, FUSE, Impression Ventures, Luge Capital and Plug and Play Ventures. This latest round of financing brings the company’s overall funding to CAD$50 million.
Details: owl.co will utilize the funding to scale its insurance claims monitoring platform and expand its team. The company said it would also increase its full-time staff in the US and Canada by 20% before the end of 2021, with additional hiring planned for 2022.
“This funding will help us expand owl.co’s platform to revolutionize the insurance industry’s process for monitoring claims and mitigating fraud to address the $80 billion cost to American consumers,” said Sean Merat, co-founder and CEO of owl.co, in a statement. “By leveraging machine learning to automate and remove bias from the process, we are blazing the trail to a future where nobody pays for fraud.”
Big picture: According to the FBI, insurance fraud costs the average US family $400-700 per year in the form of increased premiums. owl.co claims its monitoring platform enables insurance providers to stop unwarranted claim payments, release reserves, and adjust expenses, which helps keep premiums down, ultimately saving consumers money. The platform automatically detects significant losses from malingering, exaggerated, or non-eligible claims at a rate five times greater than any other tool, the company says.
Value proposition: Unlike many other service providers, owl.co says it does not use claimant data such as age, gender, neighborhood stats, or race, in its models to determine eligibility in order to eliminate biases. owl.co’s platform flags potential fraud so organizations can prioritize and deprioritize claims. owl.co’s solution also currently addresses ineligible disability and workers’ compensation insurance claims.
Buy-in: Insurers have taken notice, with six of the 10 largest US insurers already using owl.co to automate their fraud detection and claims monitoring processes.
The money talks: “We are excited to partner with owl.co, who is a leader in advancing the digitization of claims in the insurance industry,” shared PV Boccosam, partner at Cota Capital. “Delivering a clear ROI to insurance carriers gives us high conviction that owl.co‘s AI-driven approach can maximize value creation for its customers.”
Public backing: In 2020, owl.co was awarded a co-investment of CAD$4.5 million from the Canadian government as part of the country’s Innovation Superclusters Initiative.
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