Former Facebook Executive’s Fairmatic Raises $42M For New Vehicle Insurance Startup
Jonathan Matus, former head of mobile services at Android and Facebook, has founded a new company, Fairmatic, which aims to improve road safety and generate cost savings. The company also announced that it has raised $42 million in a Series A funding round.
Fairmatic, a New York-based insurance company focused on enabling safer car ownership and improving road safety for all, has raised $42 million. The funding was led by Foundation Capital in partnership with Aquiline Technology Growth.
The company is also backed by angel investors from the insurance, fintech and technology industries, including Yahoo founder Jerry Yang, Israeli-American investor Oren Zeev, who invests in people on the Forbes 2022 Midas list, Hippo Insurance founder Assaf Wand and entrepreneur and multiple unicorn investor Bill Tai.
The company also announced the appointment of Jamie Trish as CEO of Allstate and the appointment of Jonathan Matus, who previously worked at Android and Facebook, as CEO.
Getting out of the secretive system
In addition to the investment, the funding has taken the company out of stealth mode. Fairmatic tested its stealth risk prediction model on tens of thousands of payers and got best-in-class results.
“Fairmatic is a powerful alternative to outdated commercial vehicle insurance models: it rewards safety and gives fleets fair and cost control,” – says Jonathan Matus, founder and CEO of the company.
“I have worked for years to promote the adoption of smart technology, but have been very concerned about its unintended consequences on road safety. The creation of Fairmatic is a testament to our commitment to making commercial vehicle insurance a force for good.”
What Is Pet Insurance? A Complete Guide On How Pet Insurance Works
“Historically, commercial vehicle insurance has been a losing battle for insurers and policyholders, resulting in huge losses and exorbitant premiums.” Jamie Trish, president of Fairmatic Insurance, said.
“Fairmatic has turned the corner and redefined the sweet spot where safer fleets benefit from the economy, Fairmatic achieves profitable growth and the company benefits from increased road safety for all.
Our unique ability to offer fair and transparent pricing combined with our proven model of profitable growth makes Fairmatic a pioneer of Insurtech 2.0.”
“Receiving such a significant Series A stake in the current economic climate is a testament to Fairmatic’s capabilities and proven track record while under the radar, and we expect that to continue.” – Charles Moldow of Foundation Capital, who has also joined Fairmatic’s board of directors, said.
“The commercial insurance category, with a total market capitalization of $160 billion, is ripe for reform. Fairmatic offers fleets new opportunities to gain the same savings and technology benefits that consumers have enjoyed for years.”
Artificial intelligence-based approach to fleet insurance
Fairmatic, founded in 2017 by Jonathan Matus, an engineer who helped launch Android and Facebook mobile systems, is fundamentally changing the way commercial vehicles are viewed to make the roads safer, fleet by fleet.
This Insurance Company 2.0 will offer fair and transparent rates and improve road safety for all, using artificial intelligence and telematics data from drivers’ smartphones.
Fairmatic takes an unconventional approach to risk and insurance, using data and AI to provide a more personalized insurance option that promotes safety through savings.
Its AI-based risk and pricing models, trained on nearly 200 billion miles of driving data and tested over five years, have been shown to help fleets proactively manage and improve safety issues and leverage actionable insights.
A simple change in behavior can lead to significant savings and ultimately a more sustainable fleet with safer drivers, more competitive insurance premiums, and lower driver absenteeism.
Fairmatic is based in New York City and is expanding its global team with centers in the US, Israel and India.