Casentric, LLC

casentric.com

Casentric offers CaseXpert™, a cloud-based, enterprise software-as-as-solution application that helps property and casualty insurance companies and self-insured organizations to evaluate and resolve third party personal injury and property damage claims more accurately, faster and for less money. CaseXpert™ currently consists of four components. The first component is used by claims handlers to evaluate comparative fault (or liability) among two or more actors who contribute to an event of loss. The second component is used to assess the extent of damages--such as pain and suffering, medical bills, and lost wages--that accrued from an event of loss. The third component, reporting, provides certain pre-set reports and analyses on open cases and closed cases. The company has developed a fourth component to provide real-time negotiation guidance to claims handlers during settlement negotiations to achieve improved settlement outcomes. The property and casualty insurance industry spends $225BN annually on personal injury and property damage claims. Companies spend approximately 75% of their revenue from insurance premiums on such claims, an amount that is rising due in part to rising medical costs. The vast majority of companies in the industry do not use any automated solution to help evaluate claims and, instead, rely on their individual claims handlers' experience to evaluate and resolve claims. This results in considerable variability in outcomes among claims handlers within companies and, importantly, no ability to measure outcomes and control expenses. Claims handlers today still substantially rely on handwritten, or unstructured, notes to record information, even though they handle far more cases and receive substantially less training than in the past. The industry is facing a significant shortage of claims handlers as many senior claims handlers will begin to retire in the next several years. Competing software applications exist, however, their penetration into the market has been hampered by their high complexity, high cost, and inability to reduce costs. Their proprietary ''blackbox'' approach also prevents claims handlers from understanding how to do their jobs and be successful in resolving claims. CaseXpert™ takes a very different approach from these applications. Its intuitive framework makes learning and using the application fast and easy. The application presents a common framework for isolating the elements of a case and forcing claims handlers to think critically to understand the value of each element. Claims handlers evaluate more information more efficiently, which enables them to more successfully negotiate and settle cases in less time and with better outcomes. Casentric's first pilot at a small auto insurance company in 4Q2012/1Q2013 tested CaseXpert™'s liability component. Results showed that users applied more information to cases that they evaluated, which resulted in 3X more settlements using comparative negligence, 3X more success in settling cases at their assessed value, and 5 percentage point loss reduction, or $4.5MM/year. Users gave positive feedback on CaseXpert™'s ease of use, its impact on their ability to understand their jobs better and learn, and resolve cases more successfully. Casentric engaged in a second paid pilot with a second P&C insurance company in 4Q2013/1Q2014 to test its liability module. Results showed that CaseXpert™'s liability module was projected to achieve, initially, $1MM in cost reductions, or 1% of their annual expense spend, in 2014. As of 1Q2014, Casentric has four paying customers, two of which are in pilot, and is building a customer pipeline, with a MRR of $9K and growing. Along with additional reporting capabilities to show how claims handlers individually perform relative to one another, Casentric is demonstrating that claims handlers use more evidence and arguments with CaseXpert™, resulting in significant reductions in amounts paid by companies for claims by third parties for losses related to medical bills and pain and suffering, in addition to the portion of the losses for which their customers are responsible. Casentric has been funded to date by its founders ($350K+), a $250K convertible note from JumpStart, Inc., a Cleveland-based nonprofit venture association, and a $100K nonrecourse note from a local county economic development fund.