Federato announces $80 million raised to bring RiskOps to insurance
Federato, an AI-native underwriting platform for insurance, has secured $80 million in funding, including a $40 million Series C round led by StepStone Group. The company's RiskOps platform helps insurers tackle challenges like climate change and cyber crime, delivering significant improvements including 90% faster quote times and 3x increase in good business bound. QBE North America and Velocity Risk have reported substantial operational improvements using Federato's platform. The funding will support global expansion into UK, Europe, LATAM, and APAC markets.
Federato, una piattaforma di underwriting nativa AI per le assicurazioni, ha ottenuto 80 milioni di dollari di finanziamenti, inclusi 40 milioni di dollari in un round di finanziamento di Serie C guidato da StepStone Group. La piattaforma RiskOps dell'azienda aiuta le compagnie assicurative ad affrontare sfide come il cambiamento climatico e il crimine informatico, offrendo miglioramenti significativi, tra cui tempi di preventivo più rapidi del 90% e un aumento del 300% del buon business stipulato. QBE North America e Velocity Risk hanno riferito di significativi miglioramenti operativi grazie all'uso della piattaforma di Federato. Il finanziamento supporterà l'espansione globale nel Regno Unito, in Europa, in LATAM e nei mercati APAC.
Federato, una plataforma de underwriting nativa de IA para seguros, ha asegurado 80 millones de dólares en financiamiento, incluyendo 40 millones de dólares en una ronda de Serie C liderada por StepStone Group. La plataforma RiskOps de la empresa ayuda a las aseguradoras a enfrentar desafíos como el cambio climático y el cibercrimen, logrando mejoras significativas como tiempos de cotización un 90% más rápidos y un aumento de 3x en los negocios válidos. QBE North America y Velocity Risk han reportado mejoras operativas sustanciales usando la plataforma de Federato. Los fondos apoyarán la expansión global hacia los mercados del Reino Unido, Europa, LATAM y APAC.
Federato는 보험을 위한 AI 기반 언더라이팅 플랫폼으로, StepStone Group이 주도한 4천만 달러 규모의 시리즈 C 라운드를 포함해 8천만 달러의 자금을 확보했습니다. 회사의 RiskOps 플랫폼은 기후 변화와 사이버 범죄와 같은 문제에 대처하는 데 도움을 주어, 인용 시간 90% 단축과 함께 유효한 계약의 3배 증가라는 상당한 개선을 제공합니다. QBE North America와 Velocity Risk는 Federato의 플랫폼 사용으로 인해 상당한 운영 개선을 보고했습니다. 이 자금은 영국, 유럽, LATAM 및 APAC 시장으로의 글로벌 확장을 지원할 것입니다.
Federato, une plateforme d'underwriting native à l'IA pour les assurances, a sécurisé 80 millions de dollars de financement, dont 40 millions de dollars dans un tour de financement de Série C dirigé par StepStone Group. La plateforme RiskOps de l'entreprise aide les assureurs à relever des défis tels que le changement climatique et la cybercriminalité, offrant des améliorations significatives, y compris des temps de devis réduits de 90 % et un triplement des affaires valides. QBE North America et Velocity Risk ont rapporté des améliorations opérationnelles substantielles grâce à l'utilisation de la plateforme de Federato. Ce financement soutiendra l'expansion mondiale vers les marchés du Royaume-Uni, de l'Europe, de LATAM et de la région APAC.
Federato, eine KI-basierte Underwriting-Plattform für Versicherungen, hat 80 Millionen Dollar an Finanzierung gesichert, einschließlich 40 Millionen Dollar in einer von StepStone Group geleiteten Serie-C-Runde. Die RiskOps-Plattform des Unternehmens hilft Versicherern, Herausforderungen wie den Klimawandel und Cyberkriminalität anzugehen, und bietet bedeutende Verbesserungen wie eine 90% schnellere Angebotszeit und einen 3-fachen Anstieg der guten abgeschlossenen Geschäfte. QBE North America und Velocity Risk haben wesentliche betriebliche Verbesserungen durch die Nutzung der Federato-Plattform gemeldet. Die Finanzierung wird die globale Expansion in die Märkte Großbritannien, Europa, LATAM und APAC unterstützen.
- Secured $80 million in total funding, including $40 million Series C round
- Platform delivers 90% improvement in time-to-quote
- Achieves 3x improvement in proportion of good business bound
- Reduces systems used by underwriters by 50-90%
- Customer Velocity Risk reports 3.7x increase in high-appetite bound policies
- None.
Insights
The
The investment aligns with growing demand for AI solutions in insurance underwriting, particularly as the industry grapples with emerging risks like climate change and cybercrime. Federato's expansion into global markets (UK, Europe, LATAM, APAC) suggests strong growth potential. For STEP shareholders, this represents a strategic move into a high-growth vertical within their private equity portfolio.
Federato's RiskOps platform addresses critical pain points in insurance underwriting through AI implementation. The platform's ability to reduce system complexity by
The technology's impact on underwriting efficiency and risk assessment accuracy could reshape competitive dynamics in the insurance sector, particularly in high-risk markets where traditional players have retreated. This positions Federato as a potential market leader in the ongoing digital transformation of insurance operations.
New capital will drive continued global expansion to bring more insurers into the AI era
"We have been closely following Federato's rapid growth over the past five years as an LP in several organizations who have been investors in the company since inception. Founders Will and William's deep expertise in AI and their dedication to bringing a true vertical AI product to the insurance industry is impressive. Federato's fast-growing customer base is a testament to the impact they've already delivered," said John Avirett, Partner at StepStone Group. "We are excited to partner with Federato as they help insurers innovate on business models to better serve challenged markets."
Federato's RiskOps platform opens the door to a new era of underwriting for the industry. Insurers have confronted new challenges like climate change, cyber crime, and social inflation over the last decade, and AI is likely to define the winners and losers in the decade to come. RiskOps is about enabling an AI-first mindset that makes risk selection faster and more precise, teams more efficient, and growth more profitable and sustainable. Federato customers regularly see a
"When we started with Federato nearly three years ago, we were impressed by the modern underwriting platform they had built. Since then, Federato has become the core engine that powers our growth businesses here in
As losses have grown more volatile and less predictable for the insurance industry, the volume of data insurers need to manage has grown faster than it can be organized and used. The combination of these forces has led many large players to pull back from challenged markets, citing a technical inability to effectively price risk. Federato's AI-native RiskOps approach has been particularly impactful in helping insurers confront difficult markets like aviation, commercial trucking, political violence, wildfire, and hurricane while delivering strong baseline efficiencies to more traditional markets.
"Velocity is and always has been in the relentless pursuit of a more efficient operation that can serve the challenged coastal wind-exposed property market," said Rod Harden, President, Velocity Risk, an MGA/carrier hybrid specializing in E&S property insurance. "In order to do that, we need an underwriting platform that can keep up with the complexity and speed of our business. Federato has delivered on those needs and pushed us to constantly iterate and improve on our processes, driving a 3.7x increase in the percentage of our bound policies that meet our definition of high appetite."
While Federato already helps thousands of underwriters focus on the highest-value business across global carriers, MGAs, and mutuals, this funding will be used to drive Federato's continued global presence in the
On the round and its significance, Will Ross, co-founder and CEO of Federato said, "We couldn't be more elated that our investors and customers feel the momentum of RiskOps in insurance the way we do. We see this financing as a milestone of continued progress and not an achievement in and of itself. That achievement lies in the value we are creating each and every day for our customers and the communities they serve. Onward!"
About Federato
Federato is bringing RiskOps to insurance to help underwriters win the right deals, faster. From the moment a submission hits an underwriter's email or portal, RiskOps puts AI to work, triaging submissions with a focus on high-appetite business, delivering real-time feedback on the portfolio, and consolidating workflows into a single proven system. Federato delivers the transformation required to drive profitable growth, providing confidence that teams will stick to the plan, because their unique portfolio goals, strategies, rules, and appetite are built into the core system through which they transact business.
About StepStone
StepStone Group Inc. (Nasdaq: STEP) is a global private markets investment firm focused on providing customized investment solutions and advisory and data services to its clients. As of September 30, 2024, StepStone was responsible for approximately
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SOURCE Federato
FAQ
How much funding did Federato raise in its Series C round led by StepStone Group (STEP)?
What performance improvements does Federato's RiskOps platform deliver?
Which markets will Federato expand into with the new funding?
