Leapstack Raises Nearly 150 Million Yuan in Series C Funding, Catalyzing the Transformation of Intelligent Risk Control in Health Insurance
SHANGHAI, January 14, 2022 /PRNewswire/ — Recently, Shanghai Leapstack Technology Co., Ltd. (hereafter referred to as Leapstack), an insurtech company, announced that it had raised a series C of 150 million yuan. This fundraising round was led by Legend Capital, followed by Peakview Capital, GF Qianhe Investment and Huazhi Capital, with Mountain View Capital acting as fundraising consultant.
In recent years, insurtech companies have embraced a more “automated” future with open arms amid the digital transformation of the insurance industry, especially health insurance. Cutting-edge technologies such as artificial intelligence and big data are transforming all areas of the insurance value chain, including products, pricing, channels, operations, underwriting and claims settlement.
Among them, RPA (Robot Process Automation), which imitates and improves the way humans interact with software to perform repetitive, standardized and high-volume tasks, has become one of the powerful tools to accelerate the digital transformation of the insurance sector.
Founded in 2016, Leapstack is the explorer of “RPA + AI” in health insurance in China, offering services to regulators such as commercial insurance companies, medical insurance bureaus and audit departments with enterprise-level big data risk control solutions through the platform intelligent one-stop risk control powered by RPA+AI.
So far, Leapstack has established close partnerships with hundreds of companies, including China Life Insurance, PICC, China Taiping, CPIC, China Insurance, Ping An Insurance, Taikang Insurance, China Continent Insurance, Sunshine Insurance, AIA, AXA , CITIC Prudential Life Assurance, Sun Life Everbright Life Insurance, Generali China, Foresea Life Insurance, Hyundai Insurance, Hannover Re, China Merchants Bank, ICBC Technology, Merck Sharp & Dohme, BeiGene, CIIC, Jiang Tai Insurance Broker, Huatai Insurance Agency & Consultant Service, Shuidi Insurance, Easy Raising (Qingsongchou), Yidu Cloud, WeDoctor, Medbanks, Yuanxin Technology, Xiaomi Insurance and Shanghai Insurance Exchange.
Strengthening Intelligent Risk Control in Health Insurance with “RPA+AI”
As one of the digital transformation trends for enterprises, RPA has attracted increasing attention from global capitals in recent years. McKinsey revealed that the global RPA market is expected to reach 100 billion US dollars in 2025, with an annual rate of 64%, becoming one of the fastest growing technologies in AI-related fields.
In April this year, UiPath, a global RPA maker, listed on the New York Stock Exchange, marking one of the largest software IPOs in US history, with a market value of more 26 billion US dollars. UiPath’s successful IPO again attracted venture capital funds to invest in RPA in China. Business card statistics suggest that there were 13 fundraising events in China RPA sector this year, double that of 2020, with more than 1 billion yuan raised.
As for the insurance industry, despite broad prospects, national health insurance in particular, is plagued by low penetration, high operating costs, high compensation risks and a lack of standardized data formats for availability, which puts increasing pressure on the participants concerned.
On the one hand, national medical insurance payment pressure is increasing due to impacts such as the aging of the population and the increase in medical expenses, leading to medium and long-term sustainability risks. Therefore, the government has given top priority to reducing health insurance expenditure in the last round of medical reform. On the other hand, for fast-growing commercial health insurance, controlling expenses while expanding scale is key to improving product sustainability.
Consequently, controlling healthcare and commercial insurance expenses has become a matter of concern for all parts of the industry.
In such a context, Leapstack, by employing “RPA+AI”, has built several platforms such as smart health insurance claims management platform, smart survey, smart coverage audit government medical, the intelligent long-term care management platform, the anti big data -Money laundering platform, big data governance platform, etc. In addition to providing the entire claims process and risk control services for commercial insurance and reinsurance institutions and insurance brokerage firms, Leapstack can also provide intelligent risk control, fund management, smart audit, data governance, anti-money laundering and other services for health insurance departments, audit institutions and banks, and decision support for formulation and adjustment of relevant policies.
Take the example of health insurance claims. As traditional insurance claims require a wide range of time-consuming manual tasks such as reporting, information extraction, and adjustment, these insurance claims are often error-prone and inefficient. The automated claims adjustment engine provided by Leapstack follows insurance companies’ custom rules and supports automated determination of coverage and reimbursement amount, which shortens claims time, improves operational efficiency and reduces manual errors.
“At present, ‘RPA+AI’ technology has been applied to the entire health insurance claims process. Reinforced by ‘RPA+AI’, Leapstack has integrated every link of the claims process, including case reporting, information retrieval, adjustment, fee calculation, etc.” mentioned Jason Liu, the founder of Leapstack.
In addition, Leapstack has developed a machine learning model and medical knowledge map to meet underwriting, claims, customer service and investigation needs in different types of insurance such as medical treatment and serious diseases. These products allow efficient detection of risk points in the underwriting and claims process at the data level, as well as precise cost control of all the main insurance links. Its big data and artificial intelligence make it possible to reverse insurance pricing and accurately predict the risks of different combinations of liability clauses in insurance products, thus diversifying products and widening the scope of underwriting users.
As top notch professionalism has gained increasing capital, Leapstack is well positioned to establish a firm foothold in Asia Pacific
Since its creation, Leapstack has completed several fundraising rounds, with shareholders such as Gaorong Capital, Fomou Assets, DCM, Puhua Capital, Danhua Capital, Lingfeng Capital, FinVolution Group (NYSE: FINV), Uponest Capital, 360 DigiTech (NASDAQ: QFIN), Huazhi Capital and GF Qianhe Investment, etc.
As for the reasons for the growing capital Leapstack has received, Jason pointed out that the key is “completeness”. This includes not only technical prowess, team members, but also brand influence.
Start with technology.
RPA + AI technology is one of the advantages that Leapstack enjoys. Nonetheless, Jason argued that “while the technology is important, it’s not the most important. The key is to find appropriate scenarios where the technology can be applied, and then make improvements as the Despite nearly six years of growth, Leapstack has only focused on the preliminary application of the technical concept and framework of RPA+AI in some specific scenarios, and there is still plenty of room for growth to the future and time is needed for constant improvements.”
Second, the core Leapstack team. The founding team is drawn from top tech companies in Silicon Valley, with a core team of senior technical experts, insurance professionals, and physicians. The team has a wealth of experience in the fields of artificial intelligence, big data, cloud computing technology and insurance risk control.
Regarding the future layout of the business, Jason said that Leapstack will continue to hold sway in the Asia Pacific insurance market while expanding its presence in the domestic market. In late 2018, Leapstack established Leapstack International Headquarters in hong kong, and joined Hong Kong Cyberport and InvestHK Project. From the hong kong market, Leapstack International has spent three years exploring the application of RPA+AI in the Asia Pacific insurance market. At present, stable partnerships have been established in hong kong, Singapore, Vietnam and Thailand, and the risk control model and RPA+AI system have been successfully applied in local commercial insurance companies and medical insurance regulators.
“For Leapstack, our next step is to make an effort to expand the Asia Pacific market, especially in South East Asia and other countries where business has started to expand. Continuous efforts will be made to launch a world-class insurance platform enhanced by RPA+AI, a risk control model and better operational service capabilities,” Jason revealed.