Fairmatic, an Israeli startup specializing in Insurtech 2.0, raised $42 million in a Series A funding round led by Foundation Capital. With this round the company came out of stealth with its service that it describes as an unconventional approach to fleet insurance “focused on enabling savings for safer fleets and improving road safety for all.”
Insurtech 2.0 is basically the second level of the merger of high tech with insurance services.
There are plenty of other Israeli startups in the insurtech market these days, so Fairmatic is in good company. But it is far from the biggest in fundraisers. Kissterra, an Israeli insurtech startup, has raised $76 million.
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Founded in 2017 by Jonathan Matus, a serial technologist who helped launch Android and Facebook mobile, Fairmatic boasts that it is shaping Insurtech 2.0 by delivering the first data-driven fleet insurance that rewards safety with savings. Fairmatic’s says that its approach to fleet insurance leverages AI-powered technology in combination with troves of telematics data to create meaningful cost savings for fleets, safer roads for society and a profitable business model. Fairmatic’s 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.
“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,” said Fairmatic founder Matus. “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.”
“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,” added Jonathan Matus.
“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.”