Fairmatic Raises $46M to Drive AI Innovation in Commercial Auto Insurance
Battery Ventures leads Series B as commercial traction validates the demand for an AI-powered fleet insurance option that rewards safer driving with savings
NEW YORK, BANGALORE and TEL AVIV, March 16, 2023 – AI-powered commercial auto insurance company Fairmatic today announced it has raised $46 million in new funding, six months after its oversubscribed Series A, bringing its total financing to $88 million. Battery Ventures led the round with participation from current investors and Bridge Bank.
Fairmatic 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 is giving fleets more proactive control over their risk management approach.
This fair and transparent underwriting approach unlocks a better understanding of risk, ensuring fleets are only evaluated based on factors within their control. With Fairmatic, fleets are 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 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," said Battery Ventures Partner Marcus Ryu, the former CEO and co-founder of insurtech company Guidewire Software.
Ryu added, "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."
“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 insurers can help drivers improve safety and reduce risk,” said Jonathan Matus, Fairmatic founder and CEO. “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.”
Following its Series B, Fairmatic is scaling its AI and data-science capabilities by opening a new R&D hub in Israel and tapping seasoned technologist and 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,” said Shaviv, who built mobile at Nexar, a fleet dash cam company for fleet management, and was employee No. 1 at Houzz, a unicorn with 65 million users. Shaviv has a proven track record of driving innovative product and engineering strategies at a global scale.
Fairmatic is creating a new commercial insurance category by delivering the first data-driven fleet insurance that rewards safety with savings. Fairmatic’s new approach leverages AI-powered technology in combination with deep telematics data to drive meaningful cost savings for fleets by valuing responsible driving leading to safer roads. The Fairmatic underwriting model has been trained and tested with over 200 billion miles of driving data to help fleets proactively manage safety issues with actionable insights.
Founded by Jonathan Matus, a serial technologist who helped launch Android and Facebook mobile, Fairmatic is fundamentally reimagining commercial auto insurance from the ground up to make roads safer one fleet at a time. Fairmatic has raised a total of $88M from Battery Ventures, Foundation Capital, Aquiline Technology Growth and insurtech, fintech and technology investors, including Jerry Yang, Oren Zeev, and Bill Tai.