UK InsurTech startup CatX has successfully raised $2.7m in seed funding as the company looks to bridge the gap between supply and demand in the reinsurance sector.
The firm, which is backed by Y-Combinator, received the capital injection from a host of top Silicon Valley venture capital (VC) company’s and angel investors, and is now setting its sights on a reinsurance industry revolution, according to InsurTech Digital.
CatX stands out with its innovative platform designed explicitly to ease the flow of capital into the reinsurance industry. The company’s primary focus lies in addressing the scarcity of reinsurance capital crucial for shielding insurers from substantial losses, particularly affecting Property & Casualty (P&C) carriers providing natural catastrophe (natcat) protection and cyber insurance providers.
The company, which was founded by Benedict Altier and Lucas Schneider, is looking to promote diverse capital investment in the market, equipping investors with the comprehensive tools needed to comprehend insurance risks, thus cultivating a more resilient and adaptable insurance industry.
The startup began its affiliation with Y-Combinator in early 2023, and this funding raise continues the company’s strong momentum this year.
Co-founder and CEO of CatX Benedict Altier said, “Our goal is to help make the insurance industry more robust and adaptable in the face of increasing global challenges. In an era where the frequency and intensity of catastrophes are on the rise, the need for adequate capital to safeguard against these risks has never been more important.
“By channeling alternative capital into insurance, we’re not only helping to close the growing protection gap but also unlocking a promising new asset class for investors that is uncorrelated to traditional investments like stocks and bonds,” he continued.
Altier’s founding partner and CTO, Lucas Schneider concurred, stated: “At CatX, we focus on providing all the tools necessary for investors to understand and invest in insurance risk. Our platform features advanced risk models to generate actionable investment insights.
A key focus for CatX is to make the whole investment process as simple as possible by digitising the workflow and utilising AI tools to shorten contract negotiations. Technological innovation is critical in attracting alternative capital providers that want sophisticated analytics and information tools,” he said.
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