Federato, an InsurTech startup specialising in AI-driven underwriting solutions, has announced the close of a $40m Series C funding round.
The round was led by StepStone Group, with continued support from existing investors Emergence Capital, Caffeinated Capital, and Pear VC, according to InsurTech Insights.
This latest injection of funds brings Federato’s total raised since its 2020 founding to $80m, and the firm plans to use the fresh funding to expand its global footprint, with a focus on key markets in the UK, Europe, Latin America (LATAM), and Asia-Pacific (APAC).
Federato is known for its innovative underwriting platform that leverages artificial intelligence to streamline processes for insurers, including global carriers, managing general agents (MGAs), and mutuals.
Its platform prioritises submissions based on appetite and business potential, allowing underwriters to focus on accounts with the highest probability of success. The technology is designed to enhance efficiency, helping underwriters sort and rate accounts directly from their inboxes.
Will Ross, co-founder and CEO of Federato, said: “We couldn’t be more elated that our investors and customers feel the momentum of RiskOps in insurance the way we do. We see this financing as a milestone of continued progress and not an achievement in and of itself. That achievement lies in the value we are creating each and every day for our customers and the communities they serve. Onward!”
John Avirett, Partner at StepStone Group “We have been closely following Federato’s rapid growth over the past five years as an LP in several organisations who have been investors in the company since inception. Founders Will and William’s deep expertise in AI and their dedication to bringing a true vertical AI product to the insurance industry is impressive. Federato’s fast-growing customer base is a testament to the impact they’ve already delivered. We are excited to partner with Federato as they help insurers innovate on business models to better serve challenged markets.”
Mike Foley, Chief Underwriting Officer, QBE North America, said, “When we started with Federato nearly three years ago, we were impressed by the modern underwriting platform they had built. Since then, Federato has become the core engine that powers our growth businesses here in North America.
“Today, we are leveraging the RiskOps platform as a unified core system for the entire policy lifecycle, from submission to quote, bind, and issue.”
Keep up with all the latest FinTech news here.
Copyright © 2024 FinTech Global
