Fairmatic receives $46 million in its latest funding round
worldinnews.com - Company Fairmatic, a commercial auto insurance company, has announced that it has received $46 million in additional funding, six months after its oversubscribed Series A round.
The new funding adds up to $88 million to Fairmatic's total funding. Battery Ventures was the lead investor, with participation from other current investors and Bridge Bank.
Fairmatic employs an algorithm that is driven by artificial intelligence to continually save money for commercial vehicles. The company offers a straightforward method of monitoring driving events, it also provides suggestions for improvement that are actionable, this allows fleets to have more control over their risk management approach.
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The corporation encourages safe driving and does not penalize fleets for unfortunate occurrences. This is different from traditional insurance models that rely on historical data, which has led to losses and overpriced premiums, especially upon renewal, Fairmatic said.
Fairmatic addresses the critical need for improving commercial auto insurance: inspiring safer driving. Marcus Ryu, a partner at Battery Ventures and former CEO of insurtech software Guidewire, said this. The company does this by taking advantage of the rich data signals generated by our smartphones and applying them to the task of identifying risky driving behavior, which enables Fairmatic to create insurance products that reward safe driving and potentially increase profitability over traditional, loss-based approaches to underwriting and pricing.
"We are excited to partner with Fairmatic as an example of fundamental innovation in the financial services industry," Ryu said. The mission of the company will require more than simply convenience and lower insurance costs for customers; it will enhance the safety of the roads we all rely on every day.
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“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, founder and CEO of Fairmatic. With this revolutionary new method of improving driver behavior, there's a significant opportunity to reframe the issue from the start. This additional funding increases Fairmatic's lead in AI research that has a meaningful impact on road safety and profitability."
With the new funding, Fairmatic is increasing its AI and data science capabilities by establishing a new research and development facility in Israel and appointing former NASA scientist Guy Shaviv as the head of engineering in the country.
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