Insurtech Fairmatic bags $42m to ‘transform’ commercial auto insurance
Insurtech Fairmatic, a data-driven fleet insurance provider led by C-suite insurance and technology executives, has bagged $42 million Series A funding from Aquiline Technology Growth, Foundation Capital and other angel investors.
The company is backed by 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.
Fairmatic is led by former Allstate President Jamie Trish (pictured right) as its president of insurance, and Jonathan Matus (pictured left), former Android and Facebook mobile executive, as its CEO. The company is ramping up to grow its global team with hubs in the US, Israel and India.
Fairmatic offers fleet insurance fleet leveraging AI-powered technology in combination with telematics data to create meaningful cost savings for fleets and improving road safety for all.
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."
Trish commented: "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."
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."
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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