Scout InsurTech Interview with Innocuous AI

Innocuous AI is a software development company. It seeks to improve insurance claims efficiency, reduce litigation, and boost policy renewals by helping claims adjusters at insurance firms comply with state regulations with ease. Chris Luiz sat with CEO, Regina Jaslow, to learn more about how Innocuous AI is impacting the industry.

Who are Innocuous AI’s clients?

Our clients consist of insurance carriers, TPAs managing claims for carriers, MGAs, insurance brokers and public adjusters—primarily professionals on the claims side. These include claims operations teams, claims advocates, desk and field claims adjusters, independent and public adjusters, who are the individuals that will be using our product.

What does your product do?

Our product helps carriers stay compliant with insurance regulations by assisting claims adjusters in handling claims fairly and within state regulations. It also aids brokers, such as claims advocates, in verifying that carriers remain compliant. For public adjusters, the product ensures that claims adjusters adhere to rules and regulations, guarding against unfair claim settlement practices.

How much capital have you raised?

We have currently raised $112,000.

Was the company born from within or outside the industry?

The company was founded outside of the insurance industry. We participated in the Global Insurance Accelerator program, where we gained significant industry knowledge.

What growth metrics have you accomplished over the last 12 months?

We built our prototype in May 2024 and launched the minimum viable product (MVP) in the fall of 2024. By January 2025, we had a waitlist of 6 customers who signed Letters of Intent (LOI) with us. In March 2025, we onboarded several paid customers to help us iterate and improve the product. We continue to build the pipeline with more customers.

Within your domain, what is the current challenge the industry is facing?

Claims adjusters managing claims across multiple states struggle to keep up with changing state regulations. No insurance carrier has managed this challenge seamlessly, leading to accidental regulatory non-compliance. Additionally, with 25 percent of insurance personnel expected to retire within the next year and 50 percent within three years, attracting new talent and onboarding new adjusters is becoming increasingly difficult. This creates a higher risk of mistakes, which leads to high litigation costs such as those with nuclear verdicts. This “hair on fire” trifecta of (1) hiring & training issues due to the “silver tsunami”, (2) time-consuming work & inconsistent compliance, (3) leading to growing enterprise risk and litigation costs, is making this an urgent industry-wide problem.

How does Innocuous AI take a unique approach to providing value?

Onboarding and training new claims adjusters is difficult due to the complexity and dryness of insurance regulations. Since claims professionals are not attorneys, traditional materials are overwhelming. Our product simplifies this process with an intuitive chat tool that acts as an easy-access compliance assistant. It provides federal and state-specific compliance requirements and internal carrier guidelines on demand—ensuring adjusters stay within regulatory guardrails without needing to become legal experts.

The onboarding process for any user of our product is typically under 15 minutes. In addition, the product provides unified data needed for claims adjudication by including not only compliance information but also claims-specific data such as weather, building codes, and more. Other workflow efficiencies such as an estimates comparison feature helps claims adjusters save hours of time going through hundreds of line items from third parties such as contractors or public adjuster estimates. 

What inspired the team to start this company?

I had filed a total of 9 insurance claims in my life over several decades, ranging from business insurance to auto and homeowners insurance, and noticed that the claims experienced had not improved significantly over the years. We were motivated to solve long-standing industry challenges using AI. Many insurance companies spend excessive amounts on legal work for pre-litigation, litigation and compliance research—an inefficient use of resources—which ultimately costs policyholders more in terms of rising premiums.

We saw an opportunity to streamline compliance, reduce unnecessary legal expenses and ultimately lower insurance costs while protecting policyholders by simply empowering claims adjusters with approachable tools to make their lives easier. The goal is to speed up the claims process to make the policyholder experience better, while reducing insurer litigation costs, and boosting policy renewals.

Can you share any goal(s) for the next 12 months?

Our main business goal is to secure additional paid customer contracts. Our product goal is to build out the product to ensure product-market fit. Following that, we aim to shift focus toward fundraising to expand our research team and compile relevant data for all 50 states and jurisdictions.

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