The company developed AI-powered predictive risk and pricing models for fleet visibility and control over insurance costs
Israeli Insurtech company Fairmatic came out of stealth this week, announcing a $42 million Series A funding round led by Foundation Capital. The company has developed an alternative to traditional commercial auto insurance models, via AI-powered predictive risk and pricing models.
While in stealth, Fairmatic’s models have been trained with nearly 200 billion miles of driving data and tested over five years of operations, says the company.
In order to provide fleet visibility and control over insurance costs, the Farimatic’s MO is to “harness every kind of available sensor data, starting with what every driver already has – a smartphone – to provide real-time safety analysis and create corporate insurance packages based on this real-time data,” said CEO Jonathan Matus.
"Safer fleets should pay less because they're less risky, but they end up subsidizing unsafe fleets because existing commercial auto insurance offerings price them the same," added Matus. “Using AI-powered technologies combined with a new industry business model, Fairmatic puts fleets in control of their insurance costs with data-driven performance-pricing that rewards safe fleets.”
“Raising such a substantial Series A in the current economic climate is testament to the opportunity Fairmatic has. With a total addressable market of $160 billion, the commercial insurance category is ripe for a refresh,” said Foundation Capital’s Charles Moldow, who also joins the Fairmatic board.
“Fairmatic offers new ways for fleets to derive the same technology-based cost savings and benefits that consumers have enjoyed for years.”