Insurtech Fairmatic Acquires $42M to “Rewrite” the Fleet Insurance Model

Insurtech Fairmatic “destealths” a unique offering that pioneers an unconventional approach to fleet insurance — “focused on enabling savings for safer fleets and improving road safety for all.”

Fairmatic is led by a team “including former Allstate President Jamie Trish, as its President of Insurance, and Jonathan Matus, former Android and Facebook mobile executive, as its CEO.”

Fairmatic also “announced a $42 million Series A funding round led by Foundation Capital.”

Jonathan Matus, founder and CEO, said:

“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. 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.”

Jamie Trish, President of Insurance, remarked:

“Historically, commercial auto insurance has been a losing battle for both insurers and insureds, suffering massive losses and inflated premiums. 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.”

Fairmatic set out “to approach risk and underwriting in an unconventional way by harnessing data and AI to introduce a more personalized insurance option that incentivizes safety with savings.”

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’s 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 behavioral 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.”

Matus added:

“Insurance in this segment has been extremely unfair. Now more than ever, with inflation making things worse, fleets need a fair and transparent insurance option. Safer fleets should pay less because they’re less risky, but they end up subsidizing unsafe fleets because existing commercial auto insurers use a catch-all pricing algorithm that fails to account for actual and dynamic risk profiles unique to each fleet.”

Fairmatic’s Series A funding 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.”

Foundation Capital’s Charles Moldow, who also joins the Fairmatic board, said:

“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.  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.”

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