Federato, a US-based provider of a “RiskOps” platform for property & casualty and specialty insurance, has secured $15m in a Series A investment round led by Emergence Capital.
Caffeinated Capital and Pear as well as AgentSync cofounder and CEO Niranjan ‘Niji’ Sabharwal, and Guidewire cofounder and ex-CEO John Raguin also joined the round.
Emergence Capital Partner Lotti Siniscalco will now be part of Federato’s board.
Federato plans to use the proceeds to upgrade its platform and expand its team in order to speed up growth in the North American Property & Casualty and Specialty insurance markets.
The firm said that it utilises reinforcement learning-based AI to offer a unified view of risk selection data, underwriting rules, and portfolio strategy.
This approach is expected to allow underwriters to make better decisions for driving growth while avoiding losses.
The Federato solution, which is designed by underwriters for underwriters, can be deployed in 8 to 12 weeks.
Insurers using its platform reported 15 to 1 reduction in the number of web-based apps and screens required for risk selection and underwriting while improving returns on reinsurance.
Federato CEO and cofounder Will Ross said: “The reality today is insurers are investing a massive amount of money in data to confront emerging risks, but have very little to show for it.
“Our focus is on putting insurers back in the driver’s seat, helping them operationalise underutilised data investments to meet their strategic goals while enabling them to address the serious social issues facing the industry.”
Federato plans to present new product capabilities at InsureTech Connect (ITC) event scheduled to be held in Las Vegas, from 20-22 September 2022.