Startup seeks to drive down insurance rates via digital means

February 28, 2021

Platforms like Uber Freight, Convoy, and DAT have digitized the way carriers find freight, and Brooklyn-based startup Koffie Labs is hoping to do the same for how fleets find truck insurance.

Koffie Labs bills itself as “a digital insurer purpose-built for the next generation of trucking and transportation,” and “the first insurtech to integrate safety technology into underwriting, pricing and loss control,” using telematics and advanced safety technology to underwrite trucking companies and reward fleets that invest in safety with discounted insurance premiums.

Offering fleets a discounted premium for the deployment of safety tech isn’t anything new. The easiest way to get a quick – if not small – break on insurance rates is to incorporate telemetry data monitoring or a camera, but Koffie COO Mike Dorfman noted that underwriters currently, “don’t actually do anything with that data on the pricing side,” he said. “They say, ‘We’ll give you a 5% discount if you tell us you have a telematics system,'” but then underwriters do not figure out how much of difference they are making and using that data to reward fleets on an ongoing basis.