Adaptive Insurance secures $5m in seed funding led by Congruent Ventures

Texas-domiciled climate-based parametric insurer, Adaptive Insurance, has successfully closed a $5 million seed funding round led by Congruent Ventures, with additional investments from Montauk Climate, the US arm of Seraphim Space – Generation Space, and private funders.

The financing will fuel the nationwide rollout of Adaptive Insurance’s parametric insurance products, starting with its flagship product, GridProtect, a short-term power outage insurance product.

GridProtect will use the basics of parametric insurance, such as verified trigger events, agreed-upon payments, and speedy claims processing to provide immediate financial relief for businesses impacted by short-duration power outages.

The outages cost American businesses an estimated $150 billion annually and are becoming more frequent as the nation’s ageing power grid struggles with increasing demand.

Additionally, to bring GridProtect to market, the investment will help to enhance unparalleled data and analytics capabilities for more precise risk assessment and faster claim processing. It will expand Adaptive Insurance’s data science and engineering teams to support continued innovation.

The funding will also develop additional parametric insurance products, scheduled to launch at year-end to address a broader range of climate and weather-related risks.

Mike Gulla, Chief Executive Officer and Co-Founder of Adaptive Insurance, commented, “After more than 20 years in the insurance industry, I’ve witnessed firsthand the growing impact of climate shifts on both the insurance market and consumers. With the severity of weather extremes, population shifts, regulations, and legacy systems, traditional insurance models simply aren’t agile enough to mitigate the immediate financial shocks that businesses face during increasingly frequent power outages.

“With GridProtect (and all our parametric solutions), we want to change that. By leveraging AI and real-time climate data, we’re offering businesses rapid relief and resilience against everyday weather events, eliminating the traditional waiting periods. We’re immensely grateful to have found like-minded investors keen to support us on this mission as we set out to change how businesses safeguard against climate risks.”

Kevin Kopczynski of Congruent Ventures, added, “The environment is changing faster than our communities, infrastructure and traditional insurance can adapt – leaving businesses to bear the risk of increasingly frequent disruptions.

“Starting with GridProtect, Adaptive Insurance combines proven insurance sector experience with a forward-thinking, data-driven framework to offer customers simple and timely solutions to seemingly complex risks. We are excited to be partnering with the team to rethink what climate insurance can be.”

Philip Krim at Montauk Climate, stated, “The most important aspect to understand about Adaptive is that it offers businesses immediate financial relief when short-term power outages strike. Traditional insurance is usually slow and complicated, but Adaptive is changing that.

“This is the first-ever short-duration power outage insurance product designed specifically to protect U.S. business owners. Adaptive is filling a massive gap with a simple, fast, and effective platform. We’re big believers in the potential of parametric product applications within the insurance industry.”

Lewis Jones of Generation Space, concluded, “It’s exciting to support a company that’s filling a critical market gap with a very smart solution. Their technology not only provides immediate relief in the face of weather events but also lays the foundation for long-term resilience and significant cost savings that can be redirected towards business growth, employee support, and community engagement.”

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