Roadzen Inc. (NASDAQ: RDZN) announced it signed a non-binding letter of intent with a U.S. commercial insurance carrier for a dedicated commercial auto insurance program. The LOI provides for $30 million in annual underwriting capacity in the first year, with plans to scale to $50 million over three years.

The proposed program adds to Roadzen's existing $25 million in U.S. underwriting capacity. Under the arrangement, Roadzen's managing general agency would operate under delegated authority from the carrier to quote, underwrite and bind commercial auto policies. The company expects the program to generate approximately $6 million in revenue in the first year at full utilization.

The LOI remains subject to negotiation and execution of definitive agreements, including a binding authority agreement with the carrier expected by June. Roadzen's U.S. producer and agent network has identified more than $50 million in committed premium demand for commercial auto coverage.

The program will integrate Roadzen's drivebuddyAI platform across insured fleets. Vehicles written under the program are expected to be equipped with computer vision and telematics technology for real-time risk management and driver behavior analytics.

"Commercial auto insurance in the U.S. is a category where rates have been rising for years, and operators need partners who can help them manage risk rather than just price it," said Rohan Malhotra, founder and CEO of Roadzen.

Roadzen operates as an AI company focused on insurance and mobility, serving clients across North America, Europe and Asia. The company is headquartered in Burlingame, California, and employs more than 300 people across offices in the U.S., U.K. and India.