Fairmatic Announcements

Fairmatic – Fair and Transparent Insurance Now Available to Brokers Nationwide

17 Sep 2019 • 3 MIN READ

Commercial insurance today is opaque and usually comes with annual price increases, regardless of a driver’s safety. It means that your safe clients are paying for other people’s losses, and that’s not fair. 

But what if it was fair? What if your clients only paid based on their actual road risk? And what if insurance was so transparent that you both knew where the costs were coming from?

Fairmatic is the world’s first auto insurance that reprices rates every month based on how safely people drive, so businesses get premiums that are more fair, automatically. It’s a fundamental change to how insurance is priced, and as of today it’s open to applications from all brokers across the United States.

Fairmatic is the first and only performance-priced auto insurance, which means that a driver’s safety is directly tied to the premiums they pay every month. Because more than 90% of collisions are caused by human error, a driver’s safety behavior is critical to understanding their risk. When we measure risky behaviors like distracted driving, excessive speeding, aggressive acceleration, and hard braking, we can better predict which drivers will be a higher risk. By better understanding risks, we can price insurance in a way that’s radically more fair. 

You might have heard of UBI, Usage-Based Insurance, and not been impressed with its loss-ratios. After all, an insurer that goes belly-up in a few years is not great for your clients, and it means more potential for churn in your own business. 

But this is BBI, Behavior-Based Insurance. We use powerful AI with up to 6X the accuracy of traditional models because behavior is far more important than usage in pricing risk. To put it another way, we look at how a driver actually behaves on the road, not just how far they drive. This means we can be more equitable, keep our loss-ratios in a healthy place, and promise a sound business for years to come. 

Fairmatic measures driving safety through sensors on the drivers’ phones. This technology lets you and your client see their drivers’ safety performance in real-time, from overall fleet safety to each individual driver’s behavior patterns. This transparency shows you safety levels and what factors will affect the next month’s premiums. What’s more, we offer tools to help your clients guide their drivers to better behaviors. The better they drive, they safer they are on the road, and the lower your client’s next premiums will be. 

“We have many programs to improve the safety for drivers and riders, but with Fairmatic we can actually see the rewards of all that hard work,” says Cory McMahon, SVP of Product and Operations at HopSkipDrive. Check out more of their results here

Fairmatic is available for commercial fleets in ride-share and on-demand delivery – specifically areas the mainstream insurance industry has struggled to service. 

All these give you, the broker, better tools for your customers. With Fairmatic, you can offer truly transparent pricing with premiums that drop as drivers improve, even for emerging categories of hard-to-insure fleets. To encourage and incentivize safer driving, and push towards a more equitable insurance ecosystem – that’s the promise of Fairmatic.

Learn More

Rhea Harris

General Manager