InsurTech Raincoat, which develops parametric embedded climate insurance products, has raised $4.5m in a seed funding round led by Anthemis.
According to a report by Artemis, the round received backing from SoftBank Group’s SB Opportunity Fund, Puerto Rican banking leader Banco Popular, Chilean financial group Consorcio, Miami-based 305 Ventures, and first check investor Divergent Capital.
Raincoat is building a suite of scalable climate insurance solutions that are parametric trigger based to enable individual claims to be instantly processed. The company said this will allow financial institutions, governments, and insurers to provide immediate payouts in the wake of climate events and natural disasters to individuals small to medium sized businesses.
The company is already working with international reinsurers and governments worldwide, on initiatives to protect farmers and individuals from catastrophic weather conditions.
Jonathan González, co-founder and CEO of Raincoat, said, “While fully-automated insurance holds the key to insuring the most vulnerable against ever-more frequent climate disasters, the obstacles to fully implement these programs at scale are incredibly complex. Our team hands off an end to end, fully operational, tailor-made solution that can be embedded in our partner’s existing channels, facilitating their claim response to end users.
“We gather all industry and local regulations, capacity, science, data and software development to deliver an automated parametric insurance product that covers all the stages of a policy lifecycle.”
Aura Underwriting, the specialist Caribbean catastrophe managing general agent of Rokstone Group, recently launched a Caribbean parametric product to complement its existing Lloyd’s Caribbean binder.
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