Fleet InsurTech Fairmatic Emerges From Stealth
Fleet InsurTech startup Fairmatic has emerged from stealth with a $42 million Series A funding round led by Foundation Capital and Aquiline Technology Growth.
The startup is also backed by Yahoo co-founder Jerry Yang, Israeli-American investor Oren Zeev, Hippo Insurance co-founder Assaf Wand and entrepreneur and unicorn investor Bill Tai, according to a Wednesday (Aug. 31) press release.
Headquartered in Reno, Nevada, and founded in 2019 by CEO Jonathan Matus, Fairmatic aims to approach fleet insurance based on safety. The startup uses risk and pricing models powered by artificial intelligence (AI) to offer tailored insurance options that incentivize safety with savings, per the release.
“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,” Matus said. “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.”
Close to 200 billion miles of driving data and five years of testing operations went into Fairmatic’s AI-powered risk and pricing models, according to the release. The startup said the results pointed to a “proven way” to help fleets proactively manage and improve safety issues with actionable insights.
Simple behavioral shifts can add up to noticeable cost savings, more sustainable fleets, safer drivers, competitive insurance rates and lower attrition rates, Fairmatic said.
“Historically, commercial auto insurance has been a losing battle for both insurers and insureds, suffering massive losses and inflated premiums,” said Jamie Trish, Fairmatic’s 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.”
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