Continuity raises £4.2m in seed funding round

Continuity, the company using AI to help insurers improve underwriting for SMEs, raises €5m (£4.2m) from Elaia Partners, Bpifrance and Kamet Ventures.

Created in 2019 with renowned European venture builder Kamet Ventures, Continuity’s SaaS platform uses Open Data and AI to detect insurance contracts that are either outdated or invalid across four product lines, including Professional Indemnity, Commercial Property, Construction Workers Insurance, and Directors & Officers Liability.

To date, 10-15% of contracts have been found to not be in line with an SME’s risk profile, often through tacit renewals or because of inaccurate initial underwriting declarations.

According to research from McKinsey, commercial underwriting excellence remains paramount to insurer performance in the Property and Casualty (P&C) market, and needs to transition from an art to a science. Continuity is disrupting a €700bn industry that had remained virtually untouched over the past three decades, helping insurers meet increasing demands from SMEs for faster decisions and seamless updates on their coverage.

Benoit Pastorelli, Founder and CEO of Continuity, explained, “When we started looking into how P&C insurance was underwritten, we were astonished to discover how outdated and limited the tools available to underwriters were. We encountered multiple systems with unnecessary layers of complexity and very limited scope to improve or speed up processes.”

Headquartered in Paris and led by a team of insurance, technology and data science experts, Continuity’s clients include leading insurers like AXA France, Hiscox France and MMA.

The funding will be used to develop an AI assistant to help insurers answer their two most fundamental questions: can we insure this company or not, and does the contract need updating? It will also be used to recruit 30 additional Continuity team members, extend its portfolio scan solution to new product lines including Agriculture and Fleet, and introduce a new offering for specialist brokers and MGAs to facilitate delegation of underwriting.

Sébastien Lefebvre, Venture Partner at Elaia, said, “We believe Continuity is chasing a massive opportunity to become a cornerstone of insurers’ underwriting process. Their AI platform delivers both speed and precision and is already being used by large insurance companies to adjust risk profiles and premiums.

“We’re excited to see how strongly Continuity can impact the performance of insurers and support them in the digital transformation of key processes. We’re proud to be working with such an ambitious team with a bold vision backed by outstanding experience gained as former consultants and entrepreneurs.”