AI-powered commercial auto insurance company Fairmatic today announced the completion of a $46 million financing round led by Battery Ventures with participation from current investors. This brings to $88 million the total amount raised by the company.
Fairmatic has developed an AI-driven underwriting platform that provides savings opportunities for insuring commercial fleets. By providing an easy way to monitor driving events and offering actionable improvement tips, Fairmatic gives fleets managers more proactive control over their risk management approach. Fleets are also incentivized for safer driving and not penalized 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.
Fairmatic founder and CEO Jonathan Matus said, "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 can insurers help drivers improve safety and reduce risk. 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."
Fairmatic is scaling its AI and data-science capabilities by opening a new R&D hub in Israel with former NASA researcher Guy Shaviv, as the new head of engineering in Israel. "Israel has some of the world’s finest talent for both insurtech and mobility. Folks here are creative, smart, and aggressive - exactly what a startup at our stage needs."
Published by Globes, Israel business news - en.globes.co.il - on March 16, 2023.
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