Soteris raises $8M to help insurers spot unprofitable policies with AI

The company’s first product, launched in 2020, predicts claims payouts for policies worth over $180 billion, improving insurers’ claims payout ratios by 5 to 15 percentage points within a year. Its new offering estimates a policy’s EBITDA—operating profit—rather than just claims costs. Early pilot projects showed EBITDA increases of 70% to 125%, though these results are based on Soteris’s own data. The startup argues that identifying unprofitable policies could allow insurers to lower prices or expand their customer base, though it did not address whether high-risk customers might face denial or non-renewal. Concerns about fairness and bias remain, but Soteris emphasizes compliance with existing regulations and transparency in its AI models.