ChAI closes seed to boost its commodities price risk insurance


 Commodities AI (ChAI), which is insuring commodities price risk, has closed its seed round as it expands into new markets.

The size of the investment was not disclosed. Among the investors was Insurtech Gateway.

This investment will help ChAI to create commodity risk insurance products that support   smaller companies that are underserved by existing risk transfer solutions.

ChAI is an AI-driven commodity intelligence company that supplies real-time commodity price forecasts to global audiences, including raw-material businesses and key supply chain providers.

The company stated that in the current market, supply chain providers require long-term forecasting to address global food security challenges.

ChAI’s mission is to help organisations capture more margin, optimise hedging and reduce exposure across the commodities market. Its AI technology analyses thousands of data sets to identify what variables are driving market prices, predict raw material costs, highlight risk exposure and help clients purchase the necessary commodity products effectively.

The platform initially launched in 2019 with the vision of creating a parametric insurance product that would protect clients from drastic changes in commodity prices.

Its market intelligence tool can price insurance premiums and simulates underwriting portfolios.

Insurtech Gateway CEO Richard Chattock said, “Welcome to Insurtech Gateway ChAI. Industrial supply chains face increasing price volatility in commodities with the majority unable to access hedging tools. ChAI solves this problem through a smart price protection solution backed by insurance. We are delighted to help you prove out and scale this model. We were really impressed by ChAI’s deep data insights into market and pricing dynamics.”

Insurtech Gateway recently completed the first close of its Seed Fund II, which will support 20 teams over the next four years from pre-seed to Series A.

The investor is no stranger to InsurTech investments, having recently joined the £350,000 round of the world’s first carbon insurer, Kita.

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