NEW YORK, NY â May 23, 2005 â Riskclick, a leader in Business Process Management (BPM) solutions for the insurance industry, announced today that it has received $8.2 million in growth stage funding from Advent Venture Partners and the companyâs founding investors, BA Capital Partners Europe and Amadeus Capital Partners. The investment round is also supported by private investor and industry veteran Frank Bonsal, Jr.
"Adopting Business Process Management has the potential to benefit insurers in many different ways," said Riskclick CEO James DeSocio. "Industry probes by Spitzer, proposed legislation to streamline product and agent licensing, and increasing customer pressure have raised concern among senior management. This latest round of funding enables us to expand our reach across the market in an effort to provide solutions that will meet the insurance industryâs growing demand for consistent and profitable underwriting."
Providing BPM software and services that streamline, structure, and automate business processes for the insurance industry, Riskclick will use the funding to support the growth and acceleration of product development in a focused effort to enhance its position as the leading provider of BPM applications to the insurance industry. Riskclickâs underwriting solution, Riskclick Underwriting, is a comprehensive, exception-based underwriting system for new business submissions, endorsements, and renewals across personal, commercial and specialty lines of business. Additional funding proceeds will also be used to expand the companyâs sales and marketing efforts.
"BPM is an essential component in the technology strategy for an insurance company," said Nick Teasdale, general partner at Advent Venture Partners. "Our view is that BPM will be a core requirement for most insurers to support supplier collaboration, customer service, profitable new business and improved risk management. Riskclick presented us with a rare opportunity to invest in a company that is changing the landscape of how the insurance industry conducts business."
A recent Gartner report entitled, "How Insurance Can Benefit from Business Process Management," stated that using BPM for automation, exception handling, rules implementation and process re-engineering can deliver many benefits to an insurer. The report also states, "BPM can be applied to numerous insurance processes and lines of business, and its potential should not be limited to high-volume, low-value transactions. The benefits of using BPM to automate processes with a high manual content, for example, should be higher productivity, lower costs and greater consistency. Exceptions that cannot be dealt with automatically are re-routed and assigned to insurance staff for manual handling."
Since DeSocio joined Riskclick in June 2004, he has been building a new senior management team to position Riskclick for accelerated growth. The four newest executive appointments to the senior management team have been made over the past few months. Michael Melisi, former vice president of sales in Lawson Softwareâs financial services vertical team, was appointed vice president of Sales. Paulo Kaiser, former vice president of Operations at Gist Communications, has become Riskclickâs vice president of Development and Operations. Ross Rosen, formerly director of Product Management for Kana Communications, serves as vice president of Marketing. Adam Sandler, with Riskclick since inception, has been promoted to vice president of Professional Services.