The company is raising 14 million shekels for the development of an autonomous underwriting system, according to a valuation of 240 million shekels * The company intends raising an additional 200 million shekels in 2023-2024 for obtaining a property insurance license and for developing an autonomous claims system
The Choco insuretch company, which operates in the business insurance sector, is on the way to a private offering of ordinary shares to qualified investors and institutions. The company is currently engaged in a capital raising process in order to put up the capital needed by the company and for technological developments. The company is raising 14 million shekels in the current round, according to a valuation of 240 million shekels, for an autonomous underwriting system, of which 2 million shekels have already been raised and 7 million shekels in advanced stages.
The company was founded by the CEO and Chairman Liav Gefen and the Information Systems manager, Uriel Aharoni.
The company raised 6 million shekels in 2021 for an agency license and platform, with company planning on raising an additional 200 million shekels in the coming years. The company is planning on raising 50 million shekels in 2023 for a property insurance license and the development of an autonomous claims system. The company plans in 2024 to raise 150 million shekels for a life insurance license and an autonomous health insurance system. Correct as of the present time, the company has developed a website via which it is selling a variety of insurance products of local and international insurers. The company’s products currently include hundreds of segments, the target being to reach some 3,000 segments, enabling it to create personally tailored insurance packages.
In its investor presentation, the company stresses that it will be operating in a full digital format, with the operation, sale and service being carried out automatically – “The company’s headquarters and manpower will remain slim also with hundreds of thousands and millions of customers. Choco’s artificial intelligence is able to handle an infinite number of customers with no increase in manpower”.
Choco says that the immediate result will be a drastic reduction in insurance prices: “The savings will directed to three areas: growth and marketing, the development of new products and dividend distribution”.
Choco estimates its target market at being worth around 11 billion shekels. The company says that in addition to its web sales, it is collaborating with major players in the economy, real estate companies and shopping malls, professional associations, works committees and so on. Paid personal service will be provided by licensed insurance agents.
The compares the autonomous underwriting process to the personal underwriting process and says that autonomous underwriting will enable a reduction of risks since the process is comprehensive, efficient and deep – “It is based on extracting thousands of pieces of information from the company’s databases, such as ariel photographs, governmental sources, the insured’s answers and supplemental information. The artificial intelligence analyses the information in real time and allows the joining of low-risk customers or adjusting the premium to ensure profitability”.