Climate-smart P&C insurtech secures funding to establish MGA entity that will apply high-resolution risk selection and pricing to policy underwritingMay 05, 2022 01:38 PM Eastern Daylight Time
SAN DIEGO–(BUSINESS WIRE)–FutureProof Technologies, the climate-smart P&C insurtech, announced that it has raised $6.5 million in capital led by AXIS Digital Ventures with participation from prior investors Innovation Endeavors and MS&AD Ventures. The new funding brings FutureProof’s total capital raised to nearly $10 million.
“FutureProof is a trailblazing startup that will provide innovative climate risk underwriting solutions to the market. AXIS Digital Ventures is proud to partner with FutureProof and support its mission, which aligns with our own business priorities, beliefs and values”Tweet this
“As climate risk escalates, and natural disasters continue to cause unprecedented levels of financial losses, it will widen the coverage gap and propagate underinsurance. The insurance industry knows it needs a new generation of underwriting, pricing, and portfolio management tools for managing weather- and climate-related P&C risk,” said Alisa Valderrama, co-founder and CEO at FutureProof. “Our underwriting will help close the coverage gap and increase financial resilience to climate-linked losses from hurricanes and floods. Pricing this risk will create incentives to invest in climate adaptation measures.”
Using cutting-edge artificial intelligence techniques, FutureProof predicts wind and flood losses using a broader swath of predictors that yields uniquely high-resolution predictions with highly accurate out-of-sample performance. With FutureProof’s algorithmic underwriting, the industry will be able to select, price, and manage risk more profitably in near-real-time.
FutureProof Technologies is a team of insurance industry veterans, data scientists, economists, and climate scientists. The startup was co-founded by a world-class team drawn from some of the biggest names in industry and academia. For example, Co-Founder and Chief Insurance Officer Fid Norton was most recently Chief Risk Officer at XL Catlin, and FutureProof’s modeling, analytics, and technology teams are comprised of Ph.D.s from around the world.
“This capital raise enables us to add top underwriting, portfolio risk management, and engineering talent as we launch FutureProof’s digital MGA later this year,” said Norton. “Our ground-breaking technology will improve the profitability and return on equity for our carrier and reinsurance partners, and the algorithmic underwriting engine we build to deliver our results will provide faster quotes to our wholesale broking partners.”
“FutureProof is a trailblazing startup that will provide innovative climate risk underwriting solutions to the market. AXIS Digital Ventures is proud to partner with FutureProof and support its mission, which aligns with our own business priorities, beliefs and values,” said Linda Ventresca, Chief Strategy Officer for AXIS Capital. “At AXIS, we believe the (re)insurance industry has a critical role to play in addressing climate change and we share FutureProof’s commitment to building a more climate-resilient world.”
AXIS Digital Ventures works across AXIS’ underwriting units to develop and grow strategic partnerships with InsurTechs and other innovators.
FutureProof’s AI-powered projections of asset-level losses from hurricane wind and flood will power a new generation of insurance underwriting. FutureProof will use its climate-smart insurance products to help close the coverage gap and motivate investment in climate adaptation. For more information, visit www.futureprooftech.io.
About AXIS Capital
AXIS Capital, through its operating subsidiaries, is a global provider of specialty lines insurance and treaty reinsurance with shareholders’ equity of $5.1 billion at March 31, 2022, and locations in Bermuda, the United States, Europe, Singapore and Canada. Its operating subsidiaries have been assigned a rating of “A+” (“Strong”) by Standard & Poor’s and “A” (“Excellent”) by A.M. Best. For more information about AXIS Capital, visit our website at www.axiscapital.com.
Redwood Climate Communications for FutureProof