Insurtech startup Fairmatic, founded by Israeli Jonathan Matus, a former Android and Facebook mobile executive, has announced the raising of a $42 million Series A funding round. Fairmatic grew out of Zendrive, the world’s largest driving analytics company, of which Matus is also a co-founder.
Fairmatic’s Series A was led by Foundation Capital, along with Aquiline Capital Partners. The company is also backed by angel investors from insurtech, fintech and the tech industry, including Yahoo co-founder Jerry Yang, Israeli Oren Zeev, Hippo Insurance co-founder Assaf Wand and entrepreneur Bill Tai.
Fairmatic, which plans to open an R&D center in Israel that will employ around 30 people, has developed AI-based risk and pricing models that have been trained with nearly 200 billion kilometers of driving data and tested. over five years of operation.
“Fairmatic presents an alternative to outdated commercial auto insurance models: a solution that gives fleets visibility and control over insurance costs,” said Matus, co-founder and CEO. “Fairmatic achieves this by approaching risk and underwriting in a fundamentally different way: we leverage all types of sensor data available, starting with what every driver already has – a smartphone – to provide timely safety analysis. real-time and create business insurance packages based on that real-time data.
Fairmatic currently employs 65 people in the US, UK, India, Poland and Portugal. The company also announced that former Allstate chairman Jamie Trish has been named insurance president.
“Safer fleets should pay less because they’re less risky, but they end up subsidizing unsafe fleets because existing commercial auto insurance offerings cost them the same,” Matus added. “Using AI-powered technologies combined with a new industry business model, Fairmatic empowers fleets to control their insurance costs with data-driven pricing that rewards safe fleets.”