Climate risk InsurTech the Demex Group has secured $4.2m in a seed funding round led by Anthemis and IA Capital Group.
The technology company boasts about being at the forefront of the sector thanks to its ability to customise and deliver climate-resilience through financial risk solutions on a global scale. Its solutions enable financial firms to mitigate unique weather risks and seize climate-linked business opportunities.
Demex will use the new capital to expand its team and support go-to-market for municipalities and enterprise customers.
“Corporates, large and small, need balance sheet protection against non-catastrophic climate risks,” said Ruth Foxe Blader, partner at Anthemis. “Demex is, by far, the most sophisticated solution to this problem existing in the market in terms of calibrating and transferring climate risk. They will transform how the insurance industry thinks about weather resilience.”
Matt Perlman, partner at IA Capital Group, added, “Managing operational climate risk is quickly becoming an imperative for businesses across a growing array of industries. The Demex Group’s ability to analyse a client’s specific exposures in a very granular way and generate a precisely calibrated risk transfer solution goes far beyond traditional weather derivatives and represents the frontier of parametric insurance.”
Munich Re Trading provides weather risk transfer solutions for industry sectors impacted by increased weather variability and has previously collaborated with Demex to develope select customised weather index-linked hedging instruments to help businesses manage non-catastrophic weather risks.
“Innovation and technology can help businesses become more resilient and better manage the impacts of extreme weather,” said David Stevenson, CEO and President, Munich Re Trading. “We are excited to witness the next chapter as our colleagues grow and expand their business to help customers mitigate the risks associated with unpredictable snowfall.”
Demex founder and CEO, Ed Byrns said, “Our customers know that extreme weather drives unwanted fluctuations on their bottom line. We are building a world where financial resiliency to climate is as simple as the tap of a credit card.”
Anthemis is serious about investing in InsurTech companies, having announced the close of $90m InsurTech-focused fund earlier this year. It has previously invested in InsurTech startups such as Tremor and Insurdata.
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