In a strategic move to penetrate the Israeli market and bolster its technological capabilities, U.S.-based insurance software provider Applied Systems has acquired Israeli tech startup Planck, known for its AI-driven insurance data platform. The financial terms of the deal remain undisclosed.
Since its inception, Planck has secured $73 million in funding from venture capital entities including Team8, 3L Capital, Greenfield Partners, Viola Fintech, Arbor Ventures, and Vintage Investment Partners. The latest funding round in 2022 valued the startup at $250 million.
Planck, founded in 2016 by Elad Tsur, Amir Cohen, and David Shapiro in Tel Aviv, leverages artificial intelligence to enable insurers to automate the underwriting of commercial businesses. The platform aggregates data from public records, online images, videos, and reviews, employing machine learning to generate risk-related insights.
This acquisition marks Applied Systems’ initial venture into the Israeli market amidst the ongoing conflict with the Hamas terror group, which has significantly impacted the local tech workforce. Despite these challenges, Applied Systems plans to establish a local development center, integrating Planck’s 65 employees.
The new R&D center will focus on advancing AI technologies derived from Planck’s platform while creating AI-based solutions for Applied Systems’ suite of products. Planck’s founders will join Applied Systems’ management, with Tsur assuming the role of Chief AI Officer.
“We believe the time is now to take bold steps to lead the insurance industry in discovering and implementing the benefits AI has to offer,” stated Applied Systems CEO Taylor Rhodes. “By acquiring Planck, we will be investing in a world-class team of AI and Data Science experts to accelerate the application of leading AI capabilities to insurance workflows.”
Planck has already collaborated with several U.S. insurance firms such as Attune (AIG), Republic Indemnity (Great American Insurance Group), and Chubb.
“In this partnership, we are expanding the power of AI alongside the breadth of our distribution to agencies and brokers in the insurance market, in addition to the underwriters within the insurance companies themselves,” noted Tsur. “Another significant achievement is leading Applied Systems to enter the local market and grow here significantly, contributing to the Israeli ecosystem.”
Sarit Firon, Managing Partner at Team8, praised Planck’s AI-based technology for its ability to enable insurance companies to utilize deep, real-time data to enhance their business models, directly impacting their bottom line. “We believe that the connection with a global company like Applied Systems will make a significant contribution to the Israeli ecosystem,” Firon added. “We are particularly proud that a company of such scale is entering Israel at this time, thanks to Planck’s technological achievements.”
