Adaptive Insurance has unveiled an innovative parametric insurance platform which aims to revolutionise how businesses manage and mitigate the risks associated with power outages.
The launch of GridProtect comes as climate change accelerates, causing an increasing number of weather-related power grid failures, according to InsurTech Insights.
These failures are posing significant financial challenges to businesses, particularly in the United States, where power outages result in annual losses of $150bn. Adaptive Insurance identified a gap in the current market and developed this product to provide immediate financial relief during these critical moments.
GridProtect is designed to offer swift financial protection to businesses affected by short-duration power outages. Unlike traditional insurance policies that often require a 24-hour waiting period for activation, GridProtect eliminates this delay, providing immediate capital relief to minimise financial disruptions.
The product uses AI and climate data to offer a tailored parametric insurance solution that responds as soon as an outage occurs.
The frequency of power grid failures has risen sharply, with 80% of major outages in the U.S. since 2000 attributed to weather-related events.
GridProtect’s AI-driven platform ensures businesses can quickly recover from these incidents, helping them manage both short- and long-term impacts. By ensuring faster payouts, companies can redirect funds towards employee support, business growth, and community initiatives.
Adaptive Insurance is part of Montauk Climate, a prominent incubator focusing on climate technology. Philip Krim, Founder and Partner at Montauk Climate, stated, “Climate and weather events cause $1bn in damage every three weeks in the U.S.” He continued, “We launched Adaptive to address this immense and growing problem with a novel approach that is both effective and scalable.”
Mike Gulla, CEO and Co-Founder of Adaptive Insurance, emphasised the urgency of GridProtect’s launch, stating, “We’ve seen it all across the U.S. – climate change is accelerating faster than the insurance industry can adapt, and businesses are paying the price.” He added, “We designed GridProtect to fill a critical void in the market. With our AI-powered platform, businesses can now insulate themselves from the financial shock of power outages the moment they occur—less waiting, less uncertainty.”
In addition to its primary insurance offerings, GridProtect enables businesses to take proactive measures in reducing their exposure to outages, helping to prevent long-term closures. The Federal Emergency Management Agency (FEMA) reports that businesses closed for more than five days due to power outages have a 90% chance of never reopening. By providing immediate financial relief, GridProtect aims to mitigate such risks.
Adaptive Insurance continues to lead in climate-focused insurance technology, developing solutions that support businesses in navigating an increasingly unpredictable climate landscape.
“We launched Adaptive to address this immense and growing problem with a novel approach that is both effective and scalable. Mike Gulla and Arik Yelovitch have the vision and expertise needed to steer this innovative company,” Montauk Climate’s Philip Krim added.
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