(Image credit: Ruvim Noga.)
TNEDICCA (Columbus, Ohio), a provider of location-based traffic crash intelligence and predictive analytics designed to enable more accurate auto insurance pricing, has closed $1.75 million in Series A funding. Tengro Ventures is leading the round, with participation from previous investors, Pixel Perfect Ventures and Grange Insurance, an early adopter of the technology and strategic partner. This funding round, which TNEDICCA reports was oversubscribed, also includes support from other previous investors.
“After more than quadrupling our revenue last year, this funding enables us to take on key strategic initiatives such as gaining regulatory licenses as a Rate Service Organization [RSO] so insurance companies can easily adopt TNEDICCA’s unique solutions which will quickly benefit consumers,” comments Yiem Sunbhanich, co-founder and CEO of TNEDICCA. “I am grateful for the confidence placed in us by our investors and insurance carrier partners.”
TNEDICCA identifies accident hotspots, enabling consumers and insurance companies to manage their risk accordingly. The company says it has built the most comprehensive accident location database with more than 30 million crashes covering 91 percent of the U.S. auto insurance market. TNEDICCA’s traffic crash data and location risk analytics products are now available in 40 U.S. states and the U.K. and have been adopted by more than a dozen insurance companies, including Swiss Re, Grange Insurance, and Buckle.
Chris McKay, Managing Principal of Tengro Ventures, has joined TNEDICCA’s board of directors and will serve as Chairman. McKay was previously President of SambaSafety and has experience building high-growth SaaS businesses that pioneer new categories of data, analytics, and risk solutions.
“TNEDICCA has developed a unique, high value solution that is the first new category of auto risk information to be released in the past 20 years,” comments McKay. “TNEDICCA’s founders, Yiem Sunbhanich and Nizam Syed, are innovative entrepreneurs, and I’m excited by the opportunity to partner and support TNEDICCA’s growth and future product innovation.”
More Precise Risk Understanding
“Combining TNEDICCA’s advanced data analytics with our auto products provides us with a more precise risk understanding of our customers, giving them confidence in their coverage and Grange,” comments Cheryl Lebens, President, Personal Lines, Grange Insurance. “Their product is a win for all as we’re able to offer policyholders competitive rates, which makes it easier for our agency partners to do business with us. At Grange, we pride ourselves on investing in innovative solutions that better the industry, something we know TNEDICCA will continue to do.”
According to TNEDICCA’s proprietary crash database, the overall number of car accidents in 2022 YTD rose 14 percent versus 2020 at the onset of COVID-19. The company says that trends of increasing mileage and traffic accidents heighten the importance for insurers to precisely assess their risk and for fleet operators to more effectively manage their loss control process.
TNEDICCA reports that its location risk scores have been widely accepted by insurance companies. The company has begun to expand use cases into adjacent markets such as life insurance and last-mile delivery service particularly among large self-insured logistic companies. These extended use cases are laying the groundwork for the company’s long-term growth.