Cape Town legaltech company, NuvaLaw has entered a strategic partnership with Norwich-based Validus-IVC, to provide an end-to-end motor claims solution to the global insurance industry.
Making use of leading edge technologies including predictive analysis and blockchain, the new offering will also include a much-needed personal injury offering.
Speaking at the London accelerator, Startupbootcamp insurtech demo day, where NuvaLaw was part of the 2017 global cohort, CEO Willie Pienaar said: “We are delighted that we can make use of our extensive know-how in the personal injury space and add to the proven Validus solution. Talks with both South African and global insurers have confirmed that this offering fills one of the remaining gaps in the motor insurance claims industry ”
The NuvaLaw process has already been tested by the company founders in a project with over 40 000 cases showing a 40% reduction in legal costs and indemnity payments, and disputed cases being settled four times faster than court-based resolution.
Validus’ proprietary claims management software, verifyTM, meanwhile, facilitates rules-based automated analysis and settlement of subrogated, protocol and common law motor claims.
“The partnership will allow NuvaLaw, together with Validus, to deliver a proven personal injury offering which will enhance our existing product and ensure our customers receive an holistic solution. Insurance companies using verify have already seen marked improvements in efficiencies in their claims management. Working with NuvaLaw will further increase this as well as boost cost savings in the personal injury space,” comments Validus CEO, Mike Srokowski.
Measured by Gross Written Premium, Validus has currently secured around 70% of the UK market, with the majority of the top ten insurers, signed up and actively using verifyTM for the seamless exchange of claims data. Around 48 000 claims now pass through verifyTM each month and the volume of subrogated recovery claims that has been transacted through the portal now exceeds 450 000 in less than one year.
The partnership will see both companies afforded the opportunity to grow their market presence. Future expansion discussions with insurers have included the existing UK, Australian and South African markets along with Dutch and Scandinavian companies also showing interest.
“We have already had positive feedback from both the insurance and the legal sector, which speaks volumes about the growing understanding that a seismic shift is required if both sectors want to remain profitable in the age of digitalisation. In general, more than 60 percent of the total operational costs in the insurance industry are being spent on managing and resolving claims. This partnership will allow insurance companies to drive efficiencies, ultimately benefiting the consumer,” says Pienaar.