Fairmatic, a New York-based insurtech startup focused on enabling savings for safer fleets and improving road safety for all, has landed $42 million in funding. The round was led by Foundation Capital along with Aquiline Technology Growth.
The company is also backed by Insurtech, fintech, and technology industry angel investors, including Yahoo co-founder Jerry Yang; Israeli-American investor and Forbes Midas List 2022 one-man VC Oren Zeev; Hippo Insurance co-founder Assaf Wand; entrepreneur and multiple unicorn investor Bill Tai.
Also, it announced Allstate President Jamie Trish as its President of Insurance, and Jonathan Matus, former Android, and Facebook mobile executive as its CEO.
Comes out of stealth mode
In addition to the investment, the company has emerged from stealth mode with the funds. While in stealth, Fairmatic tested its predictive risk model with tens of thousands of paying drivers and has achieved best-in-class underwriting results.
“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,” said Jonathan Matus, founder and CEO. “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.”
“Historically, commercial auto insurance has been a losing battle for both insurers and insureds, suffering massive losses and inflated premiums,” said Jamie Trish, President of Insurance. “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.”
“Raising such a substantial Series A in the current economic climate is testament to the opportunity Fairmatic has and to its proven track record while in stealth mode, which we only expect to continue on an exponential trajectory,” said Foundation Capital’s Charles Moldow, who also joins the Fairmatic board. “With a total addressable market of $160 billion, the commercial insurance category is ripe for a refresh. Fairmatic offers new ways for fleets to derive the same technology-based cost savings and benefits that consumers have enjoyed for years.”
AI-powered approach to fleet insurance
Founded in 2017 by Jonathan Matus, a serial technologist who helped launch Android and Facebook mobile, Fairmatic is reimagining commercial auto from the ground up to make roads safer, one fleet at a time. The insurtech 2.0 company provides fair and transparent pricing and improves road safety for all by harnessing AI and telematics gathered from the drivers’ smartphones.
Fairmatic approaches risk and underwriting in an unconventional way by harnessing data and AI to introduce a more personalised insurance option that incentivises safety with savings. Its AI-powered risk and pricing models have been trained with nearly 200 billion miles of driving data and tested over five years of operations, demonstrating a proven way to help fleets proactively manage and improve safety issues with actionable insights. A simple behavioural shift can result in meaningful cost savings, ultimately leading to a more sustainable fleet business with safer drivers, more competitive insurance pricing, and lower attrition rates.
Headquartered in New York, Fairmatic is ramping up to grow its global team with hubs in the US, Israel, and India.
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