Munich Startup: What does your startup do? What problem do you solve?
Lex Tan, Motionscloud: Every year, the insurance and automotive industries spend over 30 billion euros processing inspections and insurance claims. These are manual and tedious processes that are time-consuming and expensive. That's why we founded Motionscloud. Motionscloud is a Insurtech/Inspectech companies, which helps auto and property insurers, fleet and mobility operators, and airlines optimize and automate claims inspections and settlements using AI computer vision, augmented reality, IoT, and video technologies. Today, we are a global company, serving clients in the US, Central Europe, and Southeast Asia with major names like Generali.
Munich Startup: But that's been around for a long time!
Lex Tan: Motionscloud's solutions are unique in that we leverage IoT, AI computer vision, augmented reality, and video technology modules to automate inspection/damage processes. All technology modules can be combined into a standalone platform, or each module can be flexibly integrated with RESTful APIs without replacing existing core systems. Motionscloud also offers flexible customization of each module to meet the requirements and needs of the enterprise market. Therefore, Motionscloud solutions can be "out of the box" depending on the use case.
Frustrated by risk-averse and innovation-hostile superiors
Munich Startup: What is your founding story?
Lex Tan: I worked as a claims manager in the property and motor insurance industry for over 5 years. I experienced many inefficient, manual, and lengthy claims processes and dealt with dissatisfied customers. Based on my previous experience in the startup innovation scene and in the insurance claims space, I had an idea for Improving claims processing processes with the help of automation technologyI was quite enthusiastic about the idea and spent months pitching it to my superiors with a great concept, but due to internal politics, a risk-averse attitude, and the fact that innovation was one of the lowest priorities, I received no response.
After a few years of effort, I decided to leave the industry for good. In 2015, the insurtech trend began, and insurance innovation became a hot topic among insurance industry executives. That was the moment I realized that insurance companies understood the importance of innovation. So, I teamed up with longtime friends—an AI scientist, a senior software developer, and a former CEO of a claims management firm—to found Motionscloud in Germany.
Why Germany? Germany is one of the largest insurance markets in Europe, with each German citizen purchasing an average of 12 insurance products. And the rest is now history.
Munich Startup: What have been your biggest challenges so far?
Lex Tan: The biggest challenge is covering rare use cases, especially rare damage types and invisible damage. Gaining access to such data sets and insights into unusual and rare use cases is also a challenge.
Motionscloud: “Double revenue and offer new technology modules”
Munich Startup: Where would you like to be in one year, where in five years?
Lex Tan: In 1 to 2 years: Motionscloud would extensively continue further expansion in the existing markets where we serve customers to double our revenue and offer new technology modules such as the digital fraud detection module and the telematics module.
In five years, Motionscloud aims to expand beyond its existing markets, including South America, Africa, and the Middle East. In terms of sector, Motionscloud would expand beyond the insurance industry, for example, into e-mobility, airlines, real estate, construction, etc.
Munich Startup: How have you experienced Munich as a startup location so far?
Lex Tan: Munich is a very suitable location for Motionscloud due to its international insurance and insurtech scene, where global (re)insurance companies like Allianz and Munich Re are headquartered, as are regional and local insurance companies. In particular, its location in WERK1—the most startup-friendly area in Munich—and a very supportive Bavarian government provide a great ecosystem for startups.
Munich Startup: Quick exit or long breath?
Lex Tan: Our vision is to stay on track and grow Motionscloud into a much larger global company before considering an exit. We firmly believe our founders and early team members can make a significant impact on a global scale before deciding to exit.
