The funding comes six months after Fairmatic’s oversubscribed Series A funding round, bringing the company’s total raised to $88 million.
Battery Ventures led the round with participation from existing investors and Bridge Bank.
Fairmatic announces the creation of a new class of commercial auto insurance through its artificial intelligence-based underwriting approach, unlocking ongoing savings opportunities for fleets.
By providing an easy way to monitor driving events and provide actionable recommendations for improvement, Fairmatic aims to give fleets more proactive control over their approach to risk management.
According to Fairmatic, this approach to underwriting allows for a better understanding of risk and ensures that fleets are only rated based on factors within their control. Fleets are incentivized for safer driving and are not penalized for unavoidable accidents. This differs from traditional insurance models that rely on historical data, which can lead to losses and overstated premiums, especially at renewal. “Fairmatic addresses a fundamental requirement for improving commercial auto insurance: safer driving,” said Marcus Ryu, partner at
Battery Ventures and former CEO and co-founder of InsurTech Guidewire Software. The data signals and their application to the task of identifying dangerous driving behaviors to achieve this goal enables Fairmatic to offer insurance products that reward fleet drivers for safer driving while achieving greater profitability than traditional losses.
“We are delighted to partner with Fairmatic as a model of fundamental innovation in financial services. Fulfilling the company’s mission is not just about providing convenience to customers and reducing insurance costs, it will improve the safety of the roads we live on every day.
Last year, technology insurance provider 1st CENTRAL and telematics provider Cambridge Mobile Telematics (CMT) launched 1st CENTRAL Connect, a telematics-based insurance product.