Fairmatic, an InsurTech 2.0 firm that claims it is pioneering an unconventional approach to fleet insurance, has secured $42m in a Series A raise.
The round was led by Foundation Capital and Aquiline Technology Growth. Also taking aprt were a number of angel investors such as Yahoo co-founder Jerry Yang, Oren Zeev – a one-man VC – and Hippo Insurance co-founder Assaf Wand amongst others.
Fairmatic claims it is focused on enabling savings for safer fleets and improving road safety for all. The company has set out to approach risk and underwriting by harnessing data and AI to introduce a more personalised insurance option that incentivises safety with savings.
Fairmatic’s AI-powered risk and pricing models have been trained with almost 200 billion miles of driving data and tested over five years of operations, demonstrating a proven way to help fleets manage and improve safety issues with actionable insights.
The firm said a simple behavioural shift can result in meaningful cost savings, leading to a more sustainable fleet business with safer drivers, lower attrition rates and more competitive insurance pricing.
Fairmatic said that the team leverages the best of both technology and insurance to improve the entire insurance value chain from risk selection, underwriting and distribution all the way to risk mitigation and claims. The company is also planning to grow its global team with hubs in India, Israel and the US.
Fairmatic CEO and founder Jonathan Matus said, “Fairmatic is introducing an impact-driven alternative to antiquated commercial auto insurance models: one that rewards safety and gives fleets fairness and control over costs. Having spent years working on making smartphone technology ubiquitous, I was deeply troubled by its unintended consequence for road safety. Fairmatic’s inception is the manifestation of our focus to transform Commercial Auto insurance into a force for good.
“Insurance in this segment has been extremely unfair. Now more than ever, with inflation making things worse, fleets need a fair and transparent insurance option. Safer fleets should pay less because they’re less risky, but they end up subsidizing unsafe fleets because existing commercial auto insurers use a catch-all pricing algorithm that fails to account for actual and dynamic risk profiles unique to each fleet.”
Fairmatic president of insurance Jamie Trish added, “Historically, commercial auto insurance has been a losing battle for both insurers and insureds, suffering massive losses and inflated premiums. Fairmatic is flipping the script by redefining a win-win-win sweet spot where safer fleets get rewarded with savings; Fairmatic achieves profitable growth and society benefits from improved road safety for all. Our unique ability to deliver fair and transparent pricing, combined with our proven profitable growth model puts Fairmatic at the apex of Insurtech 2.0.”
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