AI Powered Insurance Startup Ominimo Raises First Investment, Reaches $220M Valuation
One such insurance company that is neither very old nor working in a glamorous field, but is still attracting talented engineers – its name is Ominimo. This is a Polish startup that started just 12 months ago without any external investment and now claims to have discovered a completely new and better way to understand the insurance sector and do risk pricing. The company is already profitable and has sold 3 lakh policies in Hungary.
Now the company has raised money from an external investor for the first time – and that too not from any small name, but from the world-renowned Zurich Insurance Group. Zurich has invested around 10 million euros and in return has taken 5% of Ominimo’s shares, which now values the company at 200 million euros (about 220 million dollars).
All this is happening at a time when a big European insurance startup WeFox is going through financial crisis and is selling parts of its business. Ominimo is learning from this situation and is moving forward and presenting itself as a stable and effective company.
For now, Ominimo is operating in only one country, Hungary, and only in car insurance. But now it plans to replicate its model in many other countries such as Poland, Sweden and the Netherlands. The company will make Zurich the main backup of its insurance and will play the role of a broker (MGAs) itself. In the future, Ominimo also wants to add property insurance.
The startup’s CEO Dusan Komar and his two fellow co-founders have seen the major problems of the insurance industry while working at companies like McKinsey – such as outdated systems, slow decision-making process and lack of talent. They realized that no bright engineer wanted to work in the insurance sector.
That’s why they created an environment where talented people can not only code, but also create new systems and bring real change. This is what started Ominimo. The company is different from others because it uses hundreds of factors other than just the usual data (e.g. age, car model) to create insurance policies – even the length and width of the vehicle, which can be used to estimate the chances of an accident while parking.
The Ominimo team includes several international math and physics Olympiad medalists who are now able to use their talents on a global level for the first time. The effect of this is clearly visible in Ominimo’s performance – the company has a lower loss ratio than the market and has a 7% market share in Hungary.
While many insurance startups just show off by creating better user interfaces and easier apps, Ominimo is actually changing the way insurance is done from the inside. This is why a big company like Zurich has decided to invest in it and support it so that it can expand its customer base in new countries.
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