Tractable to harness generative AI and invest more in technology

Artificial intelligence (AI) damage assessment insurtech Tractable will use its recent $65 million raise to further refine its technology and harness generative AI, its CEO says Insurance company.

“This funding will allow us to double our AI research and development capabilities for our customers to power the end-user journey,” said Alex Dalyac, CEO and Founder of Tractable. “The investment also allows us to explore how our technology can take advantage of recent advances in the areas of generative AI and large language models.”

The insurtech, which has worked among big names in the insurance industry from Aviva to Sompo to Tokio Marine, announced its Series E funding investment on July 18.

How does Tractor work?

Tractable’s core technology is imported with hundreds of millions of photos and data, according to Dalyac. Its algorithms are able to recognize general visual patterns, helping it assess damage and make recommendations.

“Once the photos of the damage are uploaded, the tool is able to recognize which parts have been damaged and assess how badly they have been affected. He can then recommend decisions based on his confidence level,” Dalyac said.

The technology has been used in home and auto insurance.

Part of the appeal, according to Dalyac, is how quickly AI can make a decision compared to the “traditional waiting period of days or weeks” it may otherwise take to assess a claim.

“When properties are impacted by a natural disaster, our AI enables owners to assess the damage so claims can be addressed – and livelihoods restored – within hours,” Dalyac said.

He pointed out that property valuations for disaster recovery have taken off in Japan, with 10x year-over-year volume growth expected this year, “so we will continue to advance our AI for home valuation and disaster recovery.”

In addition, he said, consumers are also increasingly demanding the ability to perform natural disaster risk profiling and mitigation through their smartphones.

“For example, whether a typhoon or hurricane can blow off the roof of a house can be influenced by the materials and condition of the windows and doors in the house,” Dalyac said. “Allowing anyone with a smartphone to appraise their home could help them understand the most cost-effective way to strengthen their home and insure it for less.”

Transforming the automotive and real estate sectors as a whole

In addition to insurers and rental markets, Tractable has also targeted auto repairers, recyclers and rental companies.

Dalyac said he hopes the technology will become an integral part of the automotive chain.

“In the future, we envision our AI being used throughout the car owner journey – whether someone is looking to buy a car, sell their car, do repairs, get a lease, etc. – so that drivers have an app that connects all of these traditionally complex processes and gives them more control,” he said.