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 reality today is insurers are investing a massive amount of money in data to confront emerging risks, but have very little to show for itWill Ross, Federato CEO and Cofounder
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 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.
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.Will Ross, Federato CEO and Cofounder
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.
by Peter Sonner