Texas-based climate-focused insurer, Adaptive Insurance, has successfully garnered $5 million in seed funding. The round was spearheaded by Congruent Ventures, with significant contributions from Montauk Climate, the American division of Seraphim Space – Generation Space, alongside other private investors.
This capital injection is poised to propel the national deployment of Adaptive Insurance’s parametric insurance offerings, beginning with their pioneering product, GridProtect. This product is designed to provide coverage for short-term power outages, using the fundamentals of parametric insurance, including verified event triggers, predetermined payouts, and expedited claims handling, to deliver swift financial relief to businesses affected by these disruptions.
With American businesses incurring estimated losses of $150 billion annually due to these outages, and the nation’s aging power grid struggling to meet growing demands, the need for such solutions is becoming increasingly critical.
In addition to launching GridProtect, the investment will be channeled towards bolstering Adaptive Insurance’s data and analytics capabilities, ensuring more accurate risk assessments and faster claims processing. The funds will also facilitate the expansion of their data science and engineering teams to support ongoing innovation.
The funding will further enable the development of additional parametric insurance products, set to be introduced by year-end, to address a broader spectrum of climate and weather-related risks.
Mike Gulla, Chief Executive Officer and Co-Founder of Adaptive Insurance, remarked, “Having spent over two decades in the insurance sector, I’ve observed the increasing influence of climate changes on both the insurance industry and its consumers. Given the intensifying weather extremes, demographic shifts, regulatory changes, and outdated systems, conventional insurance frameworks are no longer equipped to cushion businesses from the financial shocks of frequent power outages.”
He continued, “With GridProtect and our comprehensive suite of parametric solutions, we aim to change this paradigm. By harnessing AI and real-time climate data, we’re empowering businesses with rapid relief and resilience against everyday weather occurrences, eliminating traditional delays. We are deeply appreciative of our like-minded investors who support our mission to redefine business protection against climate risks.”
Kevin Kopczynski of Congruent Ventures, added, “The pace at which our environment is transforming surpasses that of our communities, infrastructure, and conventional insurance, leaving businesses vulnerable to frequent disruptions.”
He further stated, “By launching GridProtect, Adaptive Insurance is merging solid insurance sector expertise with an innovative, data-driven approach to provide customers with straightforward and timely solutions for seemingly intricate risks. We are thrilled to collaborate with the team to reimagine the landscape of climate insurance.”
Philip Krim at Montauk Climate, noted, “Adaptive’s core offering is immediate financial relief in the event of short-term power outages. While traditional insurance is often slow and convoluted, Adaptive is transforming that narrative.”
Krim continued, “This marks the first-ever insurance product designed specifically for short-duration power outages to protect U.S. business owners. Adaptive is addressing a significant gap with a platform that is simple, fast, and effective. We strongly believe in the transformative potential of parametric products within the insurance sector.”
Lewis Jones of Generation Space, concluded, “It’s exhilarating to support a company addressing a critical market need with an exceptionally smart solution. Their technology not only offers immediate relief during weather events but also establishes a foundation for long-term resilience and substantial cost savings that can be reinvested into business growth, employee welfare, and community initiatives.”
