Insurtech company Fairmatic today announced the completion of a $42 million Series A financing round led by Foundation Capital, along with Aquiline Capital Partners and with the participation of angel investors Yahoo Jerry Yang, Oren Zeev, Assaf Wand and Bill Tai.
Fairmatic is using big data and AI to disrupt the commercial auto market for company fleets. Among the company's founders and its CEO is Israeli Jonathan Matus, who has previously served as head of Android product marketing at Google. Fairmatic is a spinoff of driving analytics company Zendrive, which Matus also cofounded.
Fairmatic has 65 employees in the US, UK, Portugal, India and Poland and plans to hire 30 product development and data science specialists in Israel for a new development center.
Matus said, "Fairmatic is introducing an alternative to outdated commercial auto insurance models: one that gives fleets visibility and control over insurance costs. Fairmatic does this by approaching risk and underwriting in a fundamentally different way: we 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.
"Fairmatic is introducing an alternative to outdated commercial auto insurance models: one that gives fleets visibility and control over insurance costs."
Jonathan Matus
While in stealth, Fairmatic tested its predictive risk model with hundreds of thousands of 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.
Matus added, "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. 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."