The digital commercial automotive MGA also used its funding announcement to exit stealth mode, during which the company tested its technology with thousands of paying drivers. Fairmatic is focused on data-driven fleet insurance that rewards safety with savings, leveraging its AI-driven technology combined with telematics data.
Fairmatic started in 2017, when Jonathan Matus founded the company. He helped launch Android and Facebook mobile, among other initiatives and continues as CEO, the company noted.
A number of former insurance executives have joined Fairmatic’s leadership team. Among them, Jamie Trish, former president of Allstate Business Insurance. Ed Ford, former chief actuary of Progressive Insurance, and Brian Specht, who led the growth of the partnership at cybersecurity insurtech Coalition, complete Fairmatic’s initial leadership team.
Foundation Capital led the Series A funding round, along with Aquiline Technology Growth. A number of insurtech, fintech and tech industry angel investors are also backing the company, such as Yahoo co-founder Jerry Yang, Israeli-American investor Oren Zeev, co- Hippo Insurance founder Assaf Wand and multi-unicorn entrepreneur and investor Bill Tai.
Loop
Insurtech Buckle and InsureScan, an MGA focused on the personal insurance industry, have signed an MGA agreement supporting drivers in Alabama.
As part of their agreement, InsureScan underwrites non-standard auto insurance policies using Gateway Insurance, one of Buckle’s insurers, as the approved carrier.
“Many gig conductors fall into non-standard categories, and Buckle is committed to giving them — and others like them — access to better insurance options,” Buckle CEO Marty Young said. in prepared remarks. “InsureScan makes the insurance application process faster and easier, which fits perfectly with our goal of supporting the total success of these drivers.”
Buckle is a digital financial services company that provides insurance for the gig economy. It is built around a comprehensive insurance-as-a-service platform. After starting life as an MGA with a rideshare insurance policy, it now offers other gig-related products. Buckle also acquired and recapitalized three licensed insurance companies.
I cover
Insurtech startup iCover has secured $5 million in seed funding that will be used to hire, boost marketing, and increase R&D efforts related to its AI underwriting framework and private blockchain network.
Private investor Kesan Parasuraman led the pre-Series A funding round, having previously led the company’s seed round in August 2021.
The Missouri-based company provides an AI/algorithmic underwriting and WHO-based eApp service for life insurance companies. The goal of the technology is to provide consumers with a five-minute point-of-sale shopping experience. Additionally, the company’s omnichannel capabilities are designed to help insurance partners launch products and sell them through agencies, directly to consumers and through integrated channels.
Currently, iCover is working with six insurance companies and is launching a number of products based on its technology, the company said.
Pie insurance
Public markets continue to question the viability of insurtechs after depressing their stock prices months ago when performance fell short of expectations. Many of these companies grew rapidly before going public, focusing on increasing revenue and revenue after the fact.
Pie Insurance co-founder and president Dax Craig promises his business will be different. The company is an insurtech MGA and comprehensive carrier focused on small business workers’ compensation insurance.
“It’s important to recognize that building an insurtech business is incredibly complex and difficult,” Craig said in a recent Insurance Business America article. “That said, we’ve seen insurtechs face criticism in the public markets, which has inevitably created skepticism about the viability of insurtechs as a whole.”
Much of the first wave of insurtechs, which Craig dubbed “Insurtech 1.0”, grew rapidly and built technology-focused insurance companies. This strategy has come, he said, “at the expense of the positive unit economics and good loss ratio performance needed to run a sustainable insurance company.”
He insisted that Pie will be different under “Insurtech 2.0”, emphasizing the use of technology to drive sustainable and profitable growth while providing customers with a modern and accessible experience.
covr
Insurtech Covr Financial Technologies has launched a digital platform for independent financial advisors.
Called Covr Pro, it is designed to offer its target market a product that addresses life, long-term care, tied benefits, and disability benefits.
Covr Pro offers standalone tools for real-time quotes from major carriers as well as end-to-end support from the company’s expert team, among other features.
