Axioma is issuing between 16,000 and 26,667 shares (i.e. between 12.7% and 19.5% of total economic and voting rights) at £15.00 per share to raise the funds necessary for the execution of this business plan. The first investment of £150,000 will attract SEIS, with the balance attracting EIS.

How It Works

Axioma is a modular claims handling platform that allows insurers to streamline and simplify their business processes. From how they interact with customers that file a claim to choosing the right repair shop, Axioma is designed to provide a flexible, turn-key solution to reduce claim handling times and costs.

Axioma is a business to business SaaS (software as a service) company: we generate revenue by licensing our claims handling software to the insurance industry and through referral fees paid by our ecosystem partners (e.g. repair shops). 

Claims handling algorithm

Our proprietary algorithm classifies claims based on the context of the crash (e.g. speed limit, presence of a junction, time of day) and suggests whether the claim requires follow-up human input (e.g. from a specialist engineer or medical practitioner).

The Axioma team has conducted extensive market analysis over the course of 2018 discovering that virtually all claims are passed to senior handlers for assessment (Source: primary interviews with claims handlers), and end up being accepted in 98% of cases (Source: Association of British Insurers). This is evidence that senior claims handlers and engineers are wasting time reviewing hundreds of simple claims per month.

The scope of the algorithm is to allow insurers to predict what issues are likely to arise from any given claim, and to automate claims that are not likely to have any issues.

Partner Ecosystem / Marketplace

If a claim is determined to not require follow-up diligence, the dossier (vehicle details, preliminary damage assessment, pictures, videos) is uploaded onto the Axioma marketplace, where suppliers can offer their services. 

The platform automatically selects repair shops and other partners to bid based on pre-determined rules: proximity to the customer, specialisation of the garage (e.g. ability to repair electric vehicles) and the capacity of the garage (repair turnaround time). 

As at January 2019, we have signed 4 ecosystem partners including a garage network, a vehicle rental company, a network of engineers and a technology partner.

The ultimate goal of Axioma is to automate claims handling and use market forces to self-regulate the syndication of repair work.  

As at January 2019, we have signed 4 ecosystem partners including a garage network, a vehicle rental company, a network of engineers and a technology partner.

Market Overview

The global vehicle repair market is worth $280bn annually and is expected to grow by c.3% per year over the next 6 years. 70% of repairs are covered by insurers - Axioma's total addressable market is c. $200bn annually. 

We believe there are currently three types of software solutions on the market: process management tools (e.g. Guidewire and Solera), vertical automation tools (e.g. Verisk and SAS) and repair marketplaces (e.g. whocanfixmycar.co.uk).

Axioma is positioned at the intersection of the three markets and focuses exclusively on simple claims (which account for c. 80% of total claims volume). We believe that by focusing our efforts on automating and reducing settlement times for small claims we can significantly reduce costs.

The Challenge & Need

Axioma’s founding team has experienced first-hand the inefficiencies hindering the UK motor insurance industry. We decided to leverage our expertise in the technology and in-depth understanding of the sector and to help insurers transform their core processes. We expect that our investment and efforts will bring the much-needed innovation boost to the industry, benefitting both insurers and end consumers.

Axioma’s own primary research found the average claim in the UK takes 30 days to process. Delays in handling times can be costly to insurers and can significantly increase policy pricing.

Key reasons behind this costly delay include a backlog of claims to handle and poor communication / availability of preferred garages. 

The Axioma claims handling process aims at addressing these two issues head on - by leveraging machine learning to help in the decision making process and alleviating the stress on the claims pipeline, and by using a marketplace model to allow insurers to better interact with their supplier networks.

Based on our discussions with claims handlers / insurance executives, we expect to be able to provide uplift in 4 key performance indicators: percentage of claims settled within 15 days, number of claims handled per employee, repair cycle time and initial damage inspection cycle time.

Revenue

Axioma is a B2B technology business servicing the insurance and auto repair sectors. Revenue is generated via subscription to the Axioma claims handling tool and on a transaction basis from the Axioma Marketplace, Axioma revenue is dependent on the volume and value of repaired vehicles and on other transaction volume in the Marketplace.

We expect to begin generating revenue by Q2 2019, on the back of negotiations started in December 2018 with various MGAs (Managing General Agents) and insurers.