Federato raises $40m in Series C to fuel the AI era for Insurance

By Gloria Mathias

Federato, an innovator in AI-driven solutions for the insurance industry, has announced the successful closure of its Series C funding round, raising $40 million.

This latest round was led by Stepstone Group, with participation from existing investors Emergence Capital, Caffeinated Capital, and Pear VC. With this milestone, Federato’s total funding to date has reached $80 million.

The company emphasises that AI will be a defining force for determining the insurance industry’s leaders in the coming decade. By leveraging AI, insurers can gain dramatic competitive advantages, including faster and more precise risk selection, enhanced operational efficiency, and significant growth while maintaining portfolio profitability and sustainability.

Federato’s RiskOps platform embodies an AI-first approach to underwriting, enabling underwriters to secure the right deals more efficiently. From the moment a submission arrives via email or portal, the platform uses AI to triage submissions, prioritise high-appetite business, provide real-time portfolio feedback, and streamline workflows into a unified, proven system.

Insurers using RiskOps have reported transformative results, including a 90% improvement in quote speed, a threefold increase in good business bound, and a 50-90% reduction in the number of systems underwriters rely on. These advancements empower insurers to address emerging challenges while remaining competitive and efficient.

The company views this funding milestone as a validation of its efforts to create value for its customers. Federato plans to use the additional capital to accelerate the global adoption of the RiskOps platform, bringing the benefits of an AI-driven approach to more insurers worldwide.