Property MGA Delos raises $9M to expand wildfire insurance for homeowners

Delos Insurance Solutions, a property insurance MGA, has raised $9 million in a Series A funding round to address homeowners’ challenges in securing wildfire insurance.

This funding round was led by HSBC Asset Management, with contributions from IA Capital Group, Blue Bear Capital, Generation Space, and several angel investors.

Using wildfire science and satellite imagery, Delos identifies properties that aren’t high-risk, even as traditional insurers are scaling back coverage or raising rates in fire-prone regions.

Delos currently insures a portfolio valued at $40 billion, focusing on helping homeowners in areas vulnerable to wildfires gain access to affordable insurance.

“We are enjoying working with a great, supportive group of investment partners, as we embark on the next phase of the Delos journey. We are looking to provide insurance outside California and develop new products to help people obtain the affordable insurance they deserve,” commented Kevin Stein, CEO Delos Insurance Solutions.”

We scaled back our funding requirements for this round, despite being oversubscribed. This is due to our better-than-planned growth, market leading loss ratios, and the positive response from California homeowners.”

Stein also noted that Delos had initially planned a larger round but reduced its funding needs due to higher-than-expected growth and favourable market performance.

“We are excited to support Delos by leading their latest funding round. Its proprietary wildfire forecasting, driven by AI, is improving access to property insurance coverage in California, a market that’s under stress from growing climate catastrophes. We look forward to working with the team as they expand across the US,” added Mike D’Aurizio, Investment Director, Climate Growth Partners, HSBC Asset Management.

Delos’ investment partners specialise in sectors like finance, insurance, climate adaptation, and space technology, underscoring the range of expertise backing its mission.

“Kevin and Shanna are exceptional founders who have assembled a fantastic team to tackle an immense challenge in enabling property insurance in wildfire-exposed areas. Having led the previous two funding rounds, we have seen them overcome every obstacle along the way to gain unparalleled success and credibility with homeowners, distributors, carriers and capital markets. They have proved out their cutting edge risk selection and pricing capabilities and are poised to continue to provide solutions to dislocated insurance markets in California and beyond,” stated Matt Perlman, Partner IA Capital Group.

Vaughn Blake, Partner Blue Bear Capital, said: “Since partnering with Delos in 2019, we’ve been captivated by their innovative tech-driven approach to tackling the persistent wildfire crisis.

“Their integration of data and machine learning is revolutionising the insurance landscape, allowing them to swiftly create and sell policies. Delos is on the fast track to becoming a profitable leader, empowering people to live safely in their desired locations.”

In recognition of its contributions, Delos was recently named MGA/MGU of the Year by Insurance Insider US and ranked among CB Insights’ Top 100 Global Fintech Companies for 2024.

Lewis Jones, Vice President at Generation Space, further added: “We are thrilled to continue supporting Delos through this next stage. The business has demonstrated the efficacy of its models with a significant portfolio and is now poised for substantial, scalable growth.

“With this team, technology, and product, they are well-positioned to expand their geographic footprint and product offerings, bringing wildfire insurance solutions to the masses.”

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.