In this installment of our series on the Israeli Insurtech delegation attending the upcoming ITC Vegas convention in October 2024, we are thrilled to introduce our readers to the innovative companies reshaping the insurance landscape, continuing with SeismicAI, and delve into the depth of their journeys, challenges, and cutting-edge technologies through in-depth interviews
Benny Sasson
Company Overview
SeismicAI, founded in 2014, is a provider of innovative earthquake early warning systems (EEW). The company’s EEW as-a-service solutions accurately alert anywhere in the world. Its offices are located in Israel, the US and Mexico, and its installed base includes Italy, Mexico, Canada, the Philippines, Israel, and more.
SeismicAI’s patented regional algorithms utilize local sensors to issue high-precision alerts for earthquake preparedness. By enabling more time for preventive actions, whether triggered automatically or performed manually, SeismicAI enables extensive monetary savings for the organization.
SeismicAI solutions support business continuity for business and public organizations. They reduce injuries and casualties, mitigate insurance risk, prevent fires, explosions and environmental damage, potentially reducing non-structural damage by up to 50%.
The system covers the full early warning cycle – from monitoring and reporting, through alerts, to optionally triggering automated preventive actions.
Reflecting SeismicAI’s confidence in the reliability, robustness and accuracy of its solution, the company provides its customers with a performance guarantee for its Earthquake Early Warning. For this purpose, SeismicAI has partnered with a Munich Re Group Company. Munich Re ran a due diligence on the performance of SeismicAI’s machine learning model, enhancing the solution with an additional seal of quality, trust and credibility.
SeismicAI early alert technology was developed by leading seismologic experts and business professionals.
What inspired you to start this company?
SeismicAI: The inspiration that led Benny Sasson to found the company came from the desire to create innovation that has a significant positive impact, and saves lives. Recognizing the potential of advanced technology to mitigate the massive damages inflicted by earthquakes, he set out to create a solution that could offer precious time for preventive actions. This drive to save lives, combined with a passion for innovation, propelled him to establish a company focused on enhancing public safety and resilience through cutting-edge earthquake early warning systems.
Product and Innovation
What is your main product or service?
SeismicAI: SeismicAI earthquake early warning is based on a state-of-the-art regional algorithm utilizing patented array seismology. SeismicAI technology allows earthquake locations to be accurately and rapidly determined anywhere in the world, including offshore.
SeismicAI’s rapid and accurate alerting allows more time for lifesaving and damage prevention measures. The solution minimises loss of life and physical damage, while also helping organizations get back to business faster.
Depending on the preferences of our customers, including government entities and private enterprises, the system can be used to automatically trigger emergency responses and capabilities. SeismicAI’s solution enables damage mitigation for public safety and business continuity for a variety of customers in areas like manufacturing, mines, oil, gas and chemicals, and commercial real estate, as well as utilities and civil organisations.
SeismicAI’s system can be operational within weeks, anywhere in the world, and can be seamlessly integrated into existing seismic networks, upgrading them to real-time seismology networks.
SeismicAI’s arrays, which encompass local clusters of four sensors, can locate an earthquake’s hypocenter and estimate its magnitude and impact on various sites with high accuracy and speed. SeismicAI’s array seismology substantially accelerates the alerting process. Adding a single array to sensor-sparse regions dramatically reduces the system’s response time, as triggering the array and a single station are sufficient to locate the hypocenter and initiate the process. SeismicAI’s array technology determines the earthquake’s location using only two stations rather than four.
How does your product differentiate itself from existing solutions in the market?
SeismicAI: Traditionally, there were two types of earthquake early warning solutions – a regional system, typically operated by the government, considered accurate and reliable, providing the longest warning time. However, this system is generally available only in specific locations, and cannot be customized to the requirements of customers, in the alert threshold or format. The type of solution also struggles when the source of the earthquake is in the sea or in places where the seismic network is sparse. The second existing solution is local – simple, relatively low-cost, but with reliability issues and short to non-existent warning times.
SeismicAI’s breakthrough earthquake early warning solution provides the high level of reliability previously reserved only for regional systems, combined with the key ability to provide alerts anywhere, and to provide highly reliable warnings even for seismic events that other systems struggle with. Furthermore, our swift alerts provide more time to prepare, compared with traditional systems.
Can you share any unique features or innovations your product offers?
SeismicAI:
- Performance guarantee – SeismicAI is the only EEW provider worldwide insured by a reinsurance company, with compensation for false or missed alerts.
- Reporting for faster back-to-business – Detailed post-event reports enable faster safety assessments, allowing faster back-to-business and reducing profit loss.
- Plug & play – Our global seismological algorithms are operational in days. They easily incorporate multiple data sources, from standard seismic sensors or proprietary array technology.
- Cost-effective – Our EEW-as-a-service model is easily accessible to business and public entities of all sizes.
- Customization – SeismicAI can tailor earthquake alert levels, thresholds and optional triggered actions, as well as the alert format (SMS, loudspeaker, etc.) to the organization’s requirements
Market and Problem-Solving
What specific problem are you addressing in the insurance industry?
SeismicAI: Following the accelerated urbanization, insured damages are on the rise, in direct correlation to the urbanization rate. SeismicAI focuses on mitigating the nonstructural damage which affects business continuity.
Out of 755 Billion USD of total losses from earthquakes in 2000-2023, 76 Billion USD are losses due to business interruption, which are insured damages. SeismicAI can reduce this damage by up to 50%, and save insurance companies 38 billion USD. See graphics below.
Who are your target customers, and how do you reach them?
SeismicAI: we offer solutions for a variety of commercial and government organizations.
Commercial – SeismicAI earthquake alerts are tailored for a variety of business environments, to best prepare the affected zone before the destructive waves hit. It offers applications for sectors such as oil, gas & chemicals, utilities, manufacturing, commercial real-estate, mines and more.
Government – Earthquakes and tsunamis can cause unimaginable destruction in schools, kindergartens, hospitals and other public buildings throughout the municipality, and also harm infrastructure, from transportation to gas, electricity and water facilities. Even mild events could generate losses of billions of dollars for the municipality. Many municipalities and regions have no earthquake warning solution, and existing systems offer a lower level of accuracy, often providing an alert when it’s too late. SeismicAI offers applications such as smart city integration, and solutions for public buildings, utilities, first responders, commercial real estate and transportation.
What is the market potential for your solution?
SeismicAI: The SeismicAI earthquake early warning system can be a game-changer in the insurance market.
SeismicAI earthquake early warning system provides crucial seconds, allowing for immediate protective measures and reducing potential damages. This early information enables insurers to activate preventive actions, whether automated or manual, such as shutting down sensitive equipment or initiating building safety protocols, thereby minimizing claims from clients.
Additionally, the data collected can be used to refine risk models, improve underwriting accuracy, and optimize premium pricing. By leveraging the insights from earthquake early warning systems, insurance companies can enhance their risk management strategies, ultimately leading to better financial stability and customer satisfaction.
Implementing an earthquake early warning system significantly reduces over-the-cap insurance exposure for businesses, potentially reducing premiums and increasing coverage. According to studies, an earthquake early warning system can reduce up to 50% of nonstructural damage relating to operations, facilities and team health.
Current Status and Future Plans
What is the current status of your business (e.g., development stage, revenue, user base)?
SeismicAI: SeismicAI operates in 15 regions worldwide, has agreements with government and private enterprises, and collaborates with insurance companies in Italy and Mexico to promote our services using insurance company sales and marketing resources.
What are your key milestones for the next 12 months?
2024 milestones: Deploying an independent seismic network in Italy and Mexico; entering the Japanese market; enlarging our presence in the US (we already have a presence in Oklahoma and Texas).
Goals for ITC Conference
What are your primary objectives for attending the ITC conference?
SeismicAI: Our primary objective for attending the ITC conference is to set the stage for our penetration of the US and Japanese market. We are looking for strategic partnerships and potential customers which can benefit from our unique solution.
Are there specific partnerships or opportunities you are looking to explore?
SeismicAI: We will be looking to meet face to face with several colleagues we met during the InsurtechIL program to take the introduction a step forward. collaborations with insurance and resinsurance companies focusing on enterprises and offering business interruption and natural catastrophe insurance products.
Team and Culture
Can you introduce your founding team and their backgrounds?
SeismicAI: BENNY SASSON, CEO: Benny Sasson brings over 20 years of experience in establishing, managing and leading technology enterprises, specializing in the design and development of large-scale systems.
How does your team’s expertise contribute to your success?
SeismicAI: SeismicAI early alert technology was developed by leading seismologic experts and business professionals. It is based on long-term, ongoing collaboration with Tel Aviv University and Prof. Alon Ziv’s research group along with over a decade of earthquake science research. We collaborate with leading seismological institutes around the world, including Natural Resources Canada, the Indian Institute of Technology Roorkee, and the Geological Survey of Israel, which has integrated parts of our research into their national EEW system.
What is the company culture like at your startup?
SeismicAI: At SeismicAI we’re passionate about our technology, because we’ve set out on a mission to save lives and businesses, with a strong positive impact. We’ve built an environment where creativity thrives, giving our team members the space to innovate and push the boundaries of what’s possible. At SeismicAI, there is ample room to grow both personally and professionally, providing a chance for every individual to contribute meaningfully and advance their careers while being part of a transformative journey.
Funding and Investment
Have you secured any funding to date? If so, from whom?
SeismicAI: SeismicAI secured funds from VCs, the Innovation Authorities of Israel and India, and the World Bank.
Industry Insights and Trends
What are the biggest trends or changes you see happening in the insurtech industry?
SeismicAI: The insurtech industry is witnessing several key trends and changes that are shaping its future.
One of the most significant trends is the increasing integration of artificial intelligence (AI) and machine learning (ML). These technologies are enhancing the ability of insurers to predict changes, offer proactive product recommendations, and streamline processes and strategies.
Insurtech companies are also leveraging data-driven insights to optimize strategies and plans, and deliver personalized products and services.
Another major trend is the shift towards cloud technology and As a Service (SaaS) models. Insurers are increasingly adopting cloud-based solutions for their agility, flexibility, cost-efficiency, and scalability.
Lastly, there is a growing emphasis on Environmental, Social, and Governance (ESG) considerations. The industry’s multifaceted green challenge is becoming more prominent, with companies increasingly focusing on sustainable practices and ethical governance.
Unique Selling Proposition
What is one thing you want potential customers or partners to remember about your company?
SeismicAI: SeismicAI earthquake early warning system was tested and verified by global research organizations. It features alerts with unparalleled accuracy, and can tailor the solution, including thresholds, alert format, post-event reports, manual or automatically triggered actions, to each and every customer and organization needs.
SeismicAI leverages innovation to help people, organizations, businesses and governments to thrive. Its high precision, speed and global reach are a game-changer in the field of earthquake early warnings.
