A startup modernizing insurance technology announces $3.2 million in seed funding.
NEW YORK, Jan. 11, 2024 /PRNewswire-PRWeb/ -- Korr, an insurtech startup based in New York City, announces the closing of a $3.2 million seed funding round. The round was led by Motive Ventures along with Tokio Marine Future Fund, marking a significant step in Korr's journey to modernize insurance technology. Early investors include Plug and Play Ventures.
Founded in 2021, Korr's cloud-native core operating system migrates on-premise legacy systems to the cloud, improving customer experience and slashing operational expenditure. Korr's platform is specifically crafted to reduce switching costs and enable carriers to effortlessly convert their historical data to the cloud. The company is designed to address the challenges faced by insurance carriers, offering a flexible and efficient solution to modernize their existing infrastructure. Currently Korr is undertaking a large transformation initiative including system replacement using Korr's proprietary technology for a TPA in the US insurance market.
Gregory Ritchie, CEO and Founder of Korr, stated, "We started Korr two years ago with the thesis that cloud-native architecture and innovation will drive positive change in insurance, particularly in the post-COVID workplace and marketplace. We have invented a forward-thinking product that drives competitive advantage, cutting legacy costs and constraints, and converting decades of historical data out-of-the-box. We continue to execute on our vision, building Korr on AWS along with our early corporate design partners."
Harsh Govil, Principal at Motive Ventures, commented, "As fintech investors, we are acutely aware of how much of financial services and insurance remain dependent on decades-old tech that makes innovation a challenge. Simple updates to financial or insurance products are costly and take months to implement. We're excited to support the Korr team in building a next-generation platform to transform insurance data and business processes with a highly flexible cloud-native architecture."
Robert Pick, EVP & Chief Information Officer at Tokio Marine North America Services, commented, "Our Tokio Marine companies around the world have adopted solutions appropriate to their products and market, creating a heterogenous landscape to manage and integrate. Korr's approach is focused on ease of integration and ease of migration, in a cloud-native package, which can fit nicely in a variety of complex environments. Being able to "play well with others" is vital for modern core systems."
Steve Pretre, who led the investment for Tokio Marine Future Fund, stated, "There is a large portion of the insurance industry that still runs on legacy technology, often home grown. With the major existing insurance core platforms, those migrations can cost tens of millions of dollars or more. For many books of business that cost does not make economic sense, leaving them marooned. Recent attempts from Insurtechs to launch new core systems have focused on enabling the launch of new, often simplistic products and are not suited to the complexity of legacy system migration. Korr is the first product and team we have seen that has focused on building a highly standardized platform designed to enable effective migration of these legacy systems to a modern cloud architecture. It is a solution the industry desperately needs."
About Korr
Korr is an insurtech startup transforming the insurance industry by replacing outdated, brittle legacy technology with a cloud-native operating system for claims processing and policy administration. Korr is specifically designed to save on switching costs, enabling carriers to feasibly convert their historical data to the cloud. To learn more, visit korr.co.
About Motive Ventures
Motive Ventures, the early-stage investment arm of Motive Partners, is focused on pre-seed through to Series A financial technology investments in North America and Europe. Motive Ventures, based in Berlin, Amsterdam, London, and New York, brings differentiated expertise, connectivity, and capabilities to create long-term value in financial technology companies. Learn more at www.motivepartners.com.
Media Contact
Kimberly McClinch, Korr, 1 6467857728, [email protected], https://www.korr.co/
SOURCE Korr
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