6:29:28 PM PDT - Sunday, October 2nd, 2022

Federato raises $15M to help insurance customers manage risk  

By Editor - Fri Sep 16, 5:49 am

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Will Ross and William Steenbergen were AI researchers at Stanford working on climate and atmospheric modeling and reinforcement learning, respectively, when they began to collaborate on wildfire modeling and hurricane modeling initiatives for the insurance industry. They were surprised to learn how big of a difference there was between what the data told insurers to do and what carriers were actually doing, according to Ross. After studying the problem, Steenbergen and Ross launched Federato to provide insurers a unified view of information to select and price risks. Now, Federato is raising new capital to grow the business. Emergence Capital led a $15 million Series A round in the company, which recently closed with participation from investors, including Caffeinated Capital and Pear. A portion of the cash will go toward expanding headcount, Ross told TechCrunch via email, from Federato’s current 23 employees to 50 by the end of the year. The way Ross sees it, the insurance industry faces three major challenges today: climate-related increases in natural disasters; “loss uncertainty” in insurance risks, including state-sponsored cyberattacks and ransomware; and payout inflation caused by verdicts against insurers in a litigious environment. He pointed to Russia sponsoring cyberattacks on U.S.

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Federato raises $15M to help insurance customers manage risk

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