Delos Insurance Solutions, a catastrophe insurance managing general agency (MGA) with a specialty in California wildfire-related risks, has closed a $5.3m seed funding round.
The round was led by IA Capital, with participation from Avanta Ventures, Red Dog Capital, a syndicate of strategic investors led by insurance executive Jonathan Crystal, and Futureland Syndicate.
Delos said the funding will allow it to further expand within the California homeowner’s insurance market, which is struggling with record-breaking wildfire losses. Delos said its proprietary underwriting technology empowers insurance carriers to profitably insure homes within areas that incumbents had deemed as high risk for wildfire.
Founded in 2017, Delos prides itself on being the only company offering affordable home insurance to millions of Californians. The company uses satellite imagery and artificial intelligence to identify insurable homes within territories deemed too risky by the rest of the insurance market.
Driven by persistent drought and excessive heat, among other factors, damage caused by California wildfires continues to exceed historical norms, Delos said. Homeowners’ insurance carriers have taken corrective action, but many continue to lose money on wildfire-exposed business. Underwriters face increasing uncertainty in their risk selection criteria and pricing methodologies as the wildfire risk landscape continues to evolve under extreme conditions, the company added.
Kevin Stein, co-founder and CEO, said, “With this round of financing, Delos can go much further in achieving its dual mission of making reasonably priced insurance available to California homeowners while providing insurers and reinsurers a reliable stream of profitable revenue.”
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