Fairmatic, an AI-powered commercial auto insurance company, has announced the successful completion of a $46 million Series B funding round, led by Battery Ventures, bringing the company’s total financing to $88 million. The funding will enable Fairmatic to scale its AI and data-science capabilities by opening a new R&D hub in Israel and hiring experienced technologist, Guy Shaviv, as the new Head of Engineering in Israel.
Fairmatic is creating a new commercial auto insurance category by using AI-driven underwriting to unlock continuous savings opportunities for fleets. Its telematics-based underwriting model has been trained and tested with over 200 billion miles of driving data to proactively manage safety issues with actionable insights.
“Our fair and transparent underwriting approach unlocks a better understanding of risk, ensuring fleets are only evaluated based on factors within their control,” said Jonathan Matus, Fairmatic founder and CEO. “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.”
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. 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.
“Fairmatic addresses the central requirement of improving commercial auto insurance: motivating safer driving,” said Battery Ventures Partner Marcus Ryu. “We are excited to partner with Fairmatic as an exemplar of fundamental innovation in financial services. Fulfilment 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 daily.”
The new funding will enable Fairmatic to further develop its AI capabilities and expand its presence in the global insurance industry. “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 Matus. “With this powerful new technology for improving driver behaviour, 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.”
Fairmatic is fundamentally reimagining commercial auto insurance from the ground up to make roads safer one fleet at a time. It 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.