How Avallon is Turning Complex Claims Operations into Automated Resolutions

Avallon AI, AI agents for claims operations, led by Cornelius Schramm, Bryan Guin, Moritz Bartusch, and Leander Peter, has secured $4.6 million in seed funding, led by Frontline Ventures with participation from Y Combinator, 1984, Liquid2, and Booom. With the seed round, Will Prendergast, Partner of Frontline Ventures, will become an Avallon Board Observer.

The funding will fuel hiring and product expansion, evolving from category-specific solutions in Workers Compensation and Automotive insurance to a unified AI platform serving all Property & Casualty lines and healthcare.

According to the U.S. Bureau of Labor Statistics, the insurance industry is projected to lose nearly 400,000 workers by 2026. Avallon’s AI agents help bridge this gap by automating back-office operations and mitigating the impact of rising turnover.

Avallon’s multimodal AI structures claim data and integrate with major CMS platforms, IVR systems, and data warehouses. Its AI voice agents automate the entire claims lifecycle, handling intake, status, and billing queries, coordinating with stakeholders, extracting insights from documents, and analyzing policy terms to flag exposures.

“The convergence of staffing gaps and advanced LLMs opens a new era for AI-driven insurance automation,” said Cornelius Schramm, Co-Founder and CEO of Avallon. “Our AI agents eliminate repetitive tasks so professionals can focus on higher-value work.”

Since launching earlier this year, Avallon has shown rapid growth, with revenue increasing tenfold during its Y Combinator Spring 2025 incubation and ARR rising through contracts with U.S. and European administrators, including California-based Athens Administrators.

Danny Smith, VP of IT at Athens Administrators, praised Avallon for delivering solutions that meet business needs while enhancing customer experience. He highlighted the team’s professionalism, collaborative approach, and the platform’s intuitive design, which enabled quick and effective AI integration into claims operations.