Foresight: the new startup that is changing the way workers’ compensation works
David Fontain, Peter Grant and Leigh Appel are three men whose lives were changed by tragedy. One fateful day, a mutual friend of theirs died in an accident on a building. This sad event inspired them to create and launch Safesite,a platform that would serve to digitize safety programs for construction. However, these three entrepreneurs did not stop there. They used all the data collected by Safesiteand this year they found Foresight, an insurtech company which was conceived to cover workers’ compensation in sectors such as construction, light industrial, manufacturing, agriculture and logistics.
In recent days, the promising company has announced that it raised $15 million with participation from Blackhorn Ventures and Transverse Insurance Group.This platform was launched only four months ago, but that time has been more than enough to cover$30 million in risks. Now, the company is aiming for more ambitious goals such as reaching $50 million in underwritten premium in 2021.
According to the startup, with the help of the valuable data provided by Safesite, it has reduced workers’ compensation incidents by up to 57%. To give this conclusion, the company cites a study conducted by actuarial consulting firm Perr& Knight.At this point, many of you must be wondering how Foresight has been able to achieve such amazing numbers. The answer lies (in large part) in its powerful algorithm, which is able to manage all the data collected by Safesiteand indicate potential risks as well as predict incidents. It also delivers that information to its customers in a detailed and accurate manner. On top of that, Foresight includes Safesite risk management technology and services into every single policy, which allow them to provide a path to considerably reduce incident rates.
Another key to Foresight’s success is that this companyfocuses on policies ranging from $150,000 to $1 million+ in annual premiums. The platform has found a great business opportunity within the huge$57 billion national workers’ compensation market, according to them this segment has not been taken very seriouslyby well-established startups such as Next Insurance and Pie, those companies are still focused on continuing to providesmall business policies under $50,000 in annual premiums.
David Fontain, one of the co-founders of Foresight gave his view on what could be behind the great success of his startup.“Foresight strengthens the correlation between safety and savings while providing the fast and easy user experience insurtechs are known for. We leverage purpose-built technology to drive behavioral shifts and provide an irresistible alternative to traditional workers compensation coverage,” he said to TechCrunch.
On the other hand, another key for the rise of Foresight has been the support received byindustrial technology venture capital firms such as Brick and Mortar Ventures and Builders VC, to this day Foresight has raised $20.5 million from this kind of firms. Currently, Foresight covers six states: Nevada, Oklahoma, Arizona, Arkansas, Louisiana and New Mexico. However, it has plans to expand into the eastern U.S.