Adaptive Insurance, a company focused on climate resilience using AI and data to offer climate-based parametric insurance, has successfully secured an additional $5 million in financing from new and existing investors.
According to the announcement, this capital injection will be used to accelerate Adaptive’s development and distribution of products designed to address the growing risks related to climate and weather events.
The latest round, which brings Adaptive’s total funding to $10 million, includes participation from a group of new investors, including IAG Firemark Ventures, Sunna Ventures, Room & Pillar, and Connecticut Innovations.
In February last year, Adaptive closed a $5 million seed funding round led by existing backers Congruent Ventures, with additional investments from Montauk Climate, the US arm of Seraphim Space – Generation Space, and private funders.
The recent investment will support Adaptive’s momentum to expand its specialty product portfolio, grow its agent and partner distribution network, and continue development of its proprietary climate intelligence platform.
This growth addresses large global protection gaps, which saw $181 billion in uncovered losses in 2024 according to Swiss Re data, and $115 billion in direct climate-related losses in 2025, according to Climate Central.
Additionally, FEMA cancelled $600M in Flood Mitigation Assistance grants across 36 states last year, the report noted.
Mike Gulla, CEO and Co-Founder of Adaptive Insurance, said: “Businesses and homeowners today face risks from multiple directions at once. We’re seeing coverage gaps where standard policies fall short. Product gaps where entirely new risks have outpaced what traditional insurance was built to address.
“And infrastructure gaps created by climate volatility, shifting populations, and shrinking public resources. Specialty insurance products have a critical role to play because they allow customers to build resilience, recover faster, and maintain continuity against increasingly unpredictable disruptions. This funding allows us to continue expanding development and distribution of our suite of products and the technology that supports them.”
Adaptive launched GridProtect in 2025, a “first-of-its-kind” parametric insurance for short-duration power outages that triggers predefined payouts based on verified outages using real-time third-party data.
Its portfolio now includes wind/hail deductible buy-backs, a flexible flood product surpassing NFIP standards, and commercial equipment breakdown coverage.
The company also supports Tokio Marine HCC’s Restaurant Recovery via its proprietary platform, maintaining a focus tech-driven solutions for emerging climate risk.
“What has impressed us most is Adaptive’s ability to move from identifying a market need to launching products that deliver tangible value for customers,” said Kevin Kopczynski, Congruent Ventures. “The team has demonstrated strong execution, deep insurance expertise and a clear understanding of how climate and infrastructure risks are reshaping protection needs. We are excited to deepen our support as Adaptive enters its next phase of growth.”
Alex Guyer, at IAG Firemark Ventures, commented: “Consumers and businesses increasingly need insurance solutions that can adapt to risks that are evolving faster than traditional products were designed to address.
“We believe Adaptive’s team is building the type of technology-enabled specialty insurance platform that will play an important role in the future of resilience and risk management.”
