$40 B lost in insurance fraud while 80% consumers stay claims-free and pay the price: Halos Insurance tackles an age-old problem.

WASHINGTON, Aug. 21, 2018 /PRNewswire/ -- Halos Insurance, an insurtech founded in Washington, DC, announced its founding team today and disclosed that they have been building an insurance product that is designed to serve the low-risk and accident-free consumers.

"More than 80% of the insurance consumers are under-served. They pay a substantial premium year after year, play by the rules, live a responsible and community friendly life, and almost never submit claims," said Halos Insurance founder & chief executive Satadru Sengupta. "This low-risk group has fundamentally different needs compared to the group that submits claims frequently. We are using the latest technologies and going back to first principles to design products for low-risk groups and reduce accidents for certain high-risk groups."

According to the Insurance Information Institute (III), between 2010-2015, annually only 6% of insured homes filed claims. This number is similar for auto insurance. On the other hand, more than 70% of the premium collected is spent on claims and claims related expenses - up to 15% of which is fraud. According to the Federal  Bureau of Investigation (FBI), insurance fraud costs the average U.S. family between $400 and $700 per year in the form of increased premium. Today, once a customer is acquired, almost all monetary and operational resources are spent on claims and claims related expenses including fraud, leaving a large segment of consumers questioning the value of insurance.

Prior founding Halos Insurance, Satadru built and ran the insurance practice at DataRobot, the pioneer of automated machine learning platform used by thousands of organizations around the globe. "Satadru comes with a rare background," commented Jeremy Achin, CEO & co-founder of DataRobot. "Satadru's deep knowledge of AI and machine learning coupled with his extensive experience of insurance operations has prepared him to solve critical problems in the insurance industry." Satadru grew his career as a Data Scientist working at AIG, Liberty Mutual Insurance, and Deloitte Consulting Insurance Practice.

Veteran insurance expert, Paul Mang, joins the founding board of the Halos Insurance. Paul was formerly the Global CEO of Analytics at Aon, and a Partner in McKinsey & Company's North American Insurance practice.

Co-founded with Techstars, Halos Insurance is participating at the MetLife Digital Accelerator and fast-tracking product launch. Halos Insurance will release more details on specific launch dates and re/insurance partnerships over the next few months.

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SOURCE Halos Insurance Inc.