Key Trends that Can Help Carriers Anticipate Customer Needs, Driving Customer Satisfaction and Efficiency  March 16th 2023

Fairmatic Raises $46M to Drive AI Innovation in Commercial Auto Insurance

AI-powered commercial auto insurance company Fairmatic today announced it has raised $46 million in new funding, six months after its oversubscribed Series A, bringing its total financing to $88 million. Battery Ventures led the round with participation from current investors and Bridge Bank.

Fairmatic is creating a new commercial auto insurance category with its AI-driven underwriting approach that unlocks continuous savings opportunities for fleets. 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.

This fair and transparent underwriting approach unlocks a better understanding of risk, ensuring fleets are only evaluated based on factors within their control. 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.

"Fairmatic addresses the central requirement of improving commercial auto insurance: motivating safer driving. The company does so by capturing the rich data signal generated by our smartphones and applying it to the task of identifying unsafe driving behavior, which enables Fairmatic to offer insurance products that both reward fleet managers for safer driving and potentially achieve greater profitability than traditional, loss-based approaches to underwriting and pricing," said Battery Ventures Partner Marcus Ryu, the former CEO and co-founder of insurtech company Guidewire Software.

Meet the Insurtech: Oka, The Carbon Insurance Company

Oka, The Carbon Insurance Company, an insurtech that underwrites and insures carbon credit offset, recently announced a seed round that raised over $7 million in funding led by Aquiline Technology Growth. The insurtech, which translates to "home" in Tupi-Guarani, is paving the way for insurance in the carbon credit market through its data-driven technology and mission for transparency and stability.

Corporations that emit greenhouse gasses have the opportunity to offset their emissions by purchasing carbon credits – transferable credits that are linked with an environment-focused project, such as reforestation or woodland protection, that sequesters CO2 from the atmosphere. These credits, issued by carbon crediting programs, permit organizations to release one metric tonne of CO2 or other greenhouse gasses per credit. However, as an industry in its infancy, the voluntary credit market is lacking in regulation and governance. 

Embedded insurtech Qover launches 24-hour claims payment

Embedded insurance company Qover has launched a 24-hour claims payment feature available through its API, which will save consumers from waiting to be paid

Embedded insurance provider Qover has launched a 24-hour claims payment feature that it says will “provide policyholders with payments faster than ever”.

The Brussels-based insurtech is rolling out the feature in 32 European countries through a single API integration, allowing insurers to streamline the claims process and improve the customer experience for claimants. The express payment feature will ensure that eligible claims are processed and paid out within just 24 hours.

It is the latest positive move from the embedded insurance firm founded in 2016, which, just last month, was announcing a new partnership with business finance solution Qonto to provide embedded card insurance for Qonto’s customers.

Speaking this week with InsurTech Digital, the CEO of Qover, Quentin Colmant, believes that embedded insurance offerings are primed for continued growth. “The name of the game is and will remain users, and when done right, insurance is a powerful driver of the user behaviours that enable businesses to stay ahead of the game,” Colmant said.

Innoveo Launches Small Commercial Insurance Accelerator Delivering Digital Capabilities for SME Markets

Innoveo, a leading no-code technology provider for insurance enterprises, today announced the launch of its accelerator for the small commercial insurance space. The accelerator, empowering insurers to quickly launch and bind offer personalized insurance in the booming small and medium enterprises (SME) market.

To increase penetration into this thriving market, the accelerator offers customizable insurance products to help small businesses tailor their coverage to their unique needs, with a user-friendly digital interface that simplifies the insurance buying process. Automated underwriting and real-time data analysis help businesses assess their risks and make informed decisions about their coverage.

Accelerator enables small commercial insurers to quickly help small businesses better manage risks and protect assets.

This will allow innovative insurers to grow rapidly in this booming yet underserved market, achieve greater customer loyalty, and drive informed cross- and up-sell opportunities. Innoveo's Small Commercial Insurance Solution also provides a range of benefits to small business owners, including cost savings, streamlined processes, and enhanced customer experience.

InsurTech Cover Genius Buys Clyde

Cover Genius has purchased the warranty provider Clyde to deepen into midsized eCommerce market share.

The InsurTech announced the acquisition Wednesday (March 15), saying it aligned with its growth strategy, which also includes its recent purchase of refund protection company Booking Protect.

“Data shows that adding protection within the checkout experience increases purchase conversion rates 8%, but 58% of customers were not offered warranties for their most recent purchase," Cover Genius CEO Angus McDonald said in a news release.

He added that gap has been caused by traditional insurers whose legacy systems have left them unable to meet the demands of small and midsized retailers.

Recent research by PYMNTS backs up McDonald’s point about the importance of a well-crafted checkout experience.

“Reducing friction in shoppers’ online experiences may be the most important goal for eCommerce retailers and marketplaces,” we wrote last month. “This aim is especially critical when it comes to the all-important checkout phase.”

Past PYMNTS’ research has found that 55% of consumers are willing to give up on a purchase in the middle of checkout if the process is painful enough.

Selective Insurance introduces ergonomic risk assessment tool

Selective has introduced an ergonomic risk assessment tool that can identify high-risk body positions or movements that may lead to severe injuries and costly workers compensation claims.

According to a study of workers compensation claims made with Selective, in 2021 workplace-related injuries were reported 18% earlier in employees’ tenure than in 2011 – 5.2 years compared to 6.4 years. The study also found that during that period, strain-related injuries were the most common type of workers compensation claims in construction (22.4%) and manufacturing and wholesale segments (27.2%).

The solution, developed by TuMeke Ergonomics, allows Selective policyholders to use a smartphone to record consenting employees completing a task. TuMeke’s AI software will review the footage to build detailed 3D models of the human body moving through space to complete industry-standard assessments that identify high-risk body positions and motions while maintaining employee privacy. At the end of the process, policyholders receive a report with findings and suggestions to reduce musculoskeletal pain and disorder risks.

Monitaur Accelerates AI Governance for Insurance

Monitaur, an AI governance software company, today announced key advancements in AI governance and assurances for the insurance industry. The company has added customers, partners, board members, and regulatory leadership and secured $4.6 million funding.

“It is clear how intimately Monitaur understands and solves for a holistic model governance approach”

“Building responsible and trustworthy AI is a complex challenge for insurance companies,” said Monitaur CEO Anthony Habayeb. “Our strong value proposition, commitment to the broader ecosystem, and shared vision with our new investors are fueling the company’s growth, and we are well-positioned for the future.”

New Partnerships, People and Customers Drive Growth

Monitaur was named to the Guidewire Insurtech Vanguards initiative, a community of select startups and technologies bringing transformative solutions to the P&C industry. This recognition enables Monitaur to more deeply connect with and deliver AI governance to leading global P&C companies and the broader ecosystem.