Federato raises $80 million to date with Series C, accelerating AI era for insurance

Today we have some very exciting news to share; Federato has raised a total of $80 million, including its latest $40M round Series C funding round led by Stepstone Group, with participation from existing investors Emergence Capital, Caffeinated Capital and Pear VC.

We believe AI will define the insurance industry’s winners and losers in the decade to come as it continues to create dramatic competitive advantages for insurers. Risk selection is faster and more precise. Teams are more efficient. Perhaps most importantly, we’ve seen AI-equipped underwriting drive significantly more growth, while keeping portfolios profitable and sustainable.

Federato’s RiskOps platform enables an AI-first mindset that helps 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 customers regularly see 90% improvement in quote speed, 3x improvement in the proportion of good business bound, and 50-90% reduction in systems used by underwriters. These improvements across the value chain are fundamental to confronting these new challenges while staying efficient and competitive.

This is an exciting step for us, and a validation of everything we’ve helped our customers accomplish. We see this financing as a milestone - but not an achievement in and of itself. The real achievement is the value we’re creating for our customers every day, and this additional capital will accelerate us bringing the RiskOps movement to more insurers globally.