Federato, a portfolio strategy and underwriting platform for the insurance industry, has raised $15 million in Series A funding, led by Emergence Capital, with participation from Caffeinated Capital and Pear.
Other backers include Niranjan Sabharwal, Cofounder and CEO of AgentSync and John Raguin, Cofounder and former CEO of Guidewire.
Federato’s approach claims to enable insurers to operationalize underutilized data assets, such as catastrophe models and cyber security scans, to address challenges including climate change, social inflation, and cyber risk.
The firm uses reinforcement learning-based AI to provide a unified view of risk selection data, portfolio strategy, underwriting rules, and goals within the underwriting workflow.
“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,” said Will Ross, Federato CEO and Cofounder.
“Our focus is on putting insurers back in the driver’s seat, helping them operationalize underutilized data investments to meet their strategic goals while enabling them to address the serious social issues facing the industry.”
The funding will be used to accelerate Federato’s growth in the North American Property & Casualty and Specialty insurance markets through improvements to its platform and the recruitment of talent to grow its team.
As part of the raise, Lotti Siniscalco, Emergence Partner, will join the company’s board.
“Federato has a bold vision and has built a product for an immense and underserved market in Property & Casualty insurance. The company’s RiskOps platform serves insurers’ most important function, underwriting, which sits at the very core of any insurer’s decision making. This is an exciting combination.” said Siniscalco.
“In conducting our due diligence prior to investing in the company, what really stood out was how enamored clients were with the Federato solution and the team’s ability to deliver rapid time to value. It’s incredibly rare to find a company with this much customer love this early in its evolution, particularly in the insurance industry. We believe that Federato is on the path towards becoming an iconic company that will have a tremendous impact on insurers, their employees, and their customers.”
