The Demex Group, a risk analytics and intelligence company specialising in stop-loss reinsurance protection, has secured $10.25m in funding through a Series A and previous SAFE round.
The funding was led by Congruent Ventures, with participation from Moxxie Ventures, MetaProp, and existing investor Blue Bear Capital, according to InsurTech Insights.
Demex focuses on providing parametric reinsurance solutions that protect insurers from the financial impacts of severe convective storms, such as tornadoes, thunderstorms, hail, and wind.
As these weather events become more frequent due to climate change, Demex’s solutions are designed to mitigate risks that exceed a predetermined threshold, ensuring the financial stability of its clients. Since its inception, the company has gained significant traction, securing $65m in reinsurance contracts during its first sales season.
The fresh capital will be used by Demex to enhance its parametric reinsurance product and further its mission to safeguard insurers from the increasing frequency of climate-related storms.
The company also plans to strengthen its partnerships with reinsurance brokers and expand its customer base.
Bill Clark, president and CEO of Demex, said, “The growing impact of these storms is a critical challenge for insurers, affecting annual earnings and balance sheet reserves. We’re fortunate to have investors who bring expertise in climate, technology, and insurance, helping us address this issue.”
The round was led by Congruent Ventures, whose co-founder and managing partner, Abe Yokell, added, “Insurance carriers have been grappling with surplus losses from frequent storms for years. Reinsurers, too, have faced higher-than-expected losses from secondary perils. The Demex model, developed by a team with deep industry expertise, quantifies risk and mitigates volatility, ultimately strengthening the reinsurance sector for property owners.”
Hank Hattemer, COO of Blue Bear Capital, also remarked, “Severe convective storms now cause more damage than traditional catastrophic events, which are typically covered by conventional reinsurance. Demex’s product is uniquely calibrated to each insurer’s data, making it a fundamentally new offering in the reinsurance market, with overwhelmingly positive feedback.”
This latest funding follows a successful initial phase in which Demex was able to secure notable investments from Blue Bear Capital and other key stakeholders.
Keep up with all the latest FinTech news here
Copyright © 2024 FinTech Global
