Federato's platform, known as RiskOps, provides decision support for insurance companies during the underwriting process, helping them analyze vast amounts of data related to potential insurance scenarios. The company claims that customers see a 90% improvement in "time to quote". Its clients include reinsurance platform Kettle and larger companies like Nationwide.
Key takeaways:
- Federato, an AI-powered underwriting platform, has raised $40 million in a funding round led by Stepstone Group, bringing its total funding to $80 million.
- The startup uses AI to help insurers better understand and respond to risk, claiming to improve "time to quote" by 90% among other efficiency improvements.
- Federato was co-founded by Will Ross and William Steenbergen, who initially collaborated on a wildfire modeling project, leading them to understand the challenges in the insurance industry.
- While Federato's valuation is undisclosed, it is noted that it was a significant increase from its previous valuation of $125 million, and competitor Duck Creek was acquired for $2.6 billion in 2023.