Six months after its oversubscribed Series A, AI-powered commercial vehicle insurance provider Fairmatic revealed today that it had raised an additional $46 million in funding, bringing its total funding to $88 million. Current investors and Bridge Bank joined Battery Ventures in leading the round.
With its AI-driven underwriting methodology that opens up ongoing savings opportunities for fleets, Fairmatic is establishing a new commercial auto insurance category. Fairmatic gives fleets more proactive control over their risk management strategy by delivering an easy way to monitor driving occurrences and practical improvement advice.
With a fair and open underwriting process, fleets are only assessed based on variables in their control, improving knowledge of risk. Fleets are encouraged to drive more safely and are not penalised for inevitable accidents while using Fairmatic. This departs from conventional insurance models that rely on past data and have caused losses and exorbitant premiums, particularly at renewal.
"Fairmatic addresses the central requirement of improving commercial auto insurance: motivating safer driving. The company does so by capturing the rich data signal generated by our smartphones and applying it to the task of identifying unsafe driving behavior, which enables Fairmatic to offer insurance products that both reward fleet managers for safer driving and potentially achieve greater profitability than traditional, loss-based approaches to underwriting and pricing," said Battery Ventures Partner Marcus Ryu, the former CEO and co-founder of insurtech company Guidewire Software.
Ryu added, "We are excited to partner with Fairmatic as an exemplar of fundamental innovation in financial services. Fulfillment of the company's mission will entail more than just convenience and lower insurance costs for their customers; it will enhance the safety of the roads we all rely upon every day."
"New developments in AI, combined with troves of proprietary driving insights, have allowed Fairmatic to unlock a completely new approach to addressing the most critical questions in commercial auto insurance: which drivers are safe and which aren't; how insurers can help drivers improve safety and reduce risk," said Jonathan Matus, Fairmatic founder and CEO. "With this powerful new technology for improving driver behavior, there's a massive opportunity to reframe the problem and solution from first principles. This new funding strengthens Fairmatic's lead in AI innovation geared towards meaningfully improved road safety and profitability."
By establishing a new R&D base in Israel and hiring seasoned engineer and former NASA researcher Guy Shaviv as the new Head of Engineering in Israel, Fairmatic is scaling its AI and data-science capabilities after completing its Series B. "Israel is home to some of the best mobility and insurtech talent in the world. People here are inventive, intelligent, and competitive, which is exactly what a startup at this point requires, "Shaviv, who developed mobile at the 65 million user unicorn Houzz and was employee number one at Nexar, a fleet dash cam firm for fleet management, stated. Shaviv has a track record of leading cutting-edge technical and product strategies on a worldwide scale.
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