As chronic diseases and aging populations drive up the volume of insurance claims, traditional processes in health and life insurance struggle to keep pace. AI offers a solution, but the intricacies of health insurance require more nuanced approaches than other sectors. For instance, automating property and casualty insurance has been relatively straightforward, giving rise to companies like Guidewire. However, health insurance presents a unique challenge.
Paris-based startup Qantev is stepping up to meet this challenge by providing AI-powered software designed to streamline claims management for major clients like AXA and Generali. According to co-founder and CEO Tarik Dadi, Qantev’s software mimics the critical decision-making process that in-house medical teams perform when assessing claims. The AI models quickly analyze key questions: “Is the treatment medically necessary? Is the cost appropriate? Is there any fraudulent activity?” This automation not only speeds up the process but also reduces costs and helps retain customers.
Dadi, who previously worked as a senior data scientist at AXA, partnered with Hadrien de March, now Qantev’s CTO, who brought his expertise in mathematics and quantitative analysis. Together, they founded Qantev through Entrepreneur First in late 2018. Their initial idea was met with early success, leading to a €1.7 million seed round in 2020 and a €10 million Series A in 2022. Now, in 2024, they’ve secured an additional €30 million in Series B funding, backed by Blossom Capital, Elaia, Omnes, and Raise Ventures.
This latest round of funding comes sooner than expected, a reflection of the increasing relevance of Qantev’s approach. Dadi points out that topics central to their business—such as AI in healthcare—have gained significant attention, even appearing in Y Combinator’s 2024 Request for Startups. However, Qantev is skeptical of startups that rely solely on large language models (LLMs). “Throwing an LLM at complex problems like health insurance doesn’t work,” Dadi explained. Instead, Qantev has invested in developing smaller, highly specialized AI models tailored to specific tasks. These models, trained on historical client data, must deliver highly accurate results. “In healthcare, mistakes can be life-threatening. You can’t afford errors like denying cancer treatment,” Dadi emphasized, underscoring the need for precision in Qantev’s AI-driven solutions.
To maintain their competitive edge, Qantev plans to use the new funds to double its workforce, particularly by recruiting more AI and engineering experts. The company is also eyeing international growth, with plans to expand its presence in North America and strengthen its Hong Kong office, which focuses on the Asian market.
Despite competition from companies like Alaffia Health and Anomaly in the U.S., Qantev benefits from a solid customer base of large global insurers. Dadi acknowledges that dealing with such clients involves lengthy sales cycles, but the payoff is significant due to the large-scale contracts involved. He’s confident that Blossom Capital’s experience with enterprise software will help Qantev scale further and potentially evolve into a platform offering multiple products.
Currently, Qantev is focused on claims management, though other areas—such as underwriting—could be future growth opportunities. The company’s expansion aligns with a broader trend of using AI to curb rising healthcare costs, a problem that is only expected to intensify as populations continue to age and chronic illnesses become more prevalent.
By continuing to refine its specialized AI models and expanding its global footprint, Qantev aims to position itself as a leader in the health insurtech space, helping insurers manage claims more efficiently and affordably.