Fairmatic, an AI-powered commercial auto insurance company, has raised $46m in funding for its fleet insurance products that reward safe driving.
The funding was raised six months after Fairmatic’s oversubscribed Series A, bringing the company’s total financing to $88m.
Battery Ventures led the round with participation from current investors and Bridge Bank.
Fairmatic said it is creating a new commercial auto insurance category with its AI-driven underwriting approach that unlocks continuous savings opportunities for fleets.
By providing an easy way to monitor driving events and offering actionable improvement tips, Fairmatic aims to give fleets more proactive control over their risk management approach.
This underwriting approach, according to Fairmatic, unlocks a better understanding of risk, ensuring fleets are only evaluated based on factors within their control. Fleets are incentivised for safer driving and not penalised for unavoidable incidents. This diverges from traditional insurance models that rely on historical data, which has led to losses and overpriced premiums, especially upon renewal.
Marcus Ryu, Battery Ventures Partner and the former CEO and co-founder of InsurTech company Guidewire Software, said, “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.”
“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.”
Last year, 1st CENTRAL, a provider of technology-enabled insurance services, and Cambridge Mobile Telematics (CMT),a telematics service provider, launched 1st CENTRAL Connect, a telematics-based insurance product.
Keep up with all the latest FinTech news here.
Copyright © 2023 FinTech Global
