AI-powered climate risk platform launched by Adaptive Insurance

A new parametric insurance platform, Adaptive Insurance, powered by artificial intelligence (AI) has launched with a mission to change how businesses safeguard against climate risks.

The company’s flagship product GridProtect will offer immediate, technology-driven financial relief businesses impacted by power outages responsible for $150 billion in annual losses.

Power outages are a significant problem for businesses in the US, affecting 15 million businesses each month and resulting in substantial financial losses.

The cost of a power outage can range from $2,108 to over $8,000, depending on the duration, according to the Electric Power Research Institute (EPRI).

However, investing in resilience measures can yield significant cost savings, with every $1 spent resulting in $13 saved in clean-up and economic costs, Adaptive Insurance highlights.

Noting that these savings can be redirected towards business growth, employee support, and community engagement.

Traditional insurance policies leave businesses exposed to significant losses due to coverage gaps that can lead to severe financial consequences. GridProtect aims to change that.

By harnessing advanced AI and climate data, Adaptive Insurance offers businesses parametric coverage specifically designed for short-duration outages.

This approach eliminates the traditional 24-hour waiting period before coverage takes effect, ensuring timely protection and minimising financial disruption, the firm explains.

“We’ve seen it all across the U.S. – climate change is accelerating faster than the insurance industry can adapt, and businesses are paying the price,” said Mike Gulla, CEO and Co-Founder of Adaptive Insurance.

He continued: “We designed GridProtect to fill a critical void in the market. With our AI-powered platform, businesses can now insulate themselves from the financial shock of power outages the moment they occur—less waiting, less uncertainty.

“We are not just offering insurance; we are offering resilience, enabling businesses to weather the storms—literally and figuratively—that threaten their survival.”

Power grid failures have become increasingly frequent: 80% of the 1,755 major power outages in the US since 2000 have been weather-related, the insurance platform notes.

According to FEMA, businesses that close for just five days due to such events have a 90% chance of never reopening.

“Adaptive Insurance’s GridProtect helps businesses quickly get back on their feet with immediate capital that they can decide how to use, helping them navigate the short and long-term impacts of a power outage,” the firm stated.

Adaptive Insurance is one of the first companies to emerge from Montauk Climate, an incubator focused on climate technology.

Philip Krim, Founder and Partner at Montauk Climate, said: “Climate and weather events cause $1 billion in damage every three weeks in the US. We launched Adaptive to address this immense and growing problem with a novel approach that is both effective and scalable.

“Adaptive’s co-founders, Mike Gulla and Arik Yelovitch have the vision and expertise needed to steer this innovative company, making them the ideal leaders for this mission.”

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