Adit Ventures has agreed to seed Aanika Re, a Bermuda-based insurance vehicle wholly owned by Aanika Biosciences.
Aanika Biosciences is a Brooklyn based synthetic biology startup that uses microbes to improve food safety. The company was founded in 2018 by Vishal Bhuyan and Dr. Ellen Jorgensen.
Its mandate is to leverage the microbial tagging technology developed by Aanika Biosciences, as well as a broader swath of biological innovations, to prevent, identify and mitigate various risks in the food and agricultural industries.
Vishaal Bhuyan co-founder and CEO of Aanika Biosciences, said: “No one in the trillion dollar insurance market is looking at biology as a source of data commented. Traceability is at the heart of three main catalysts: 1) climate changes, which could lead to a significant rise in food safety issues, 2) FDA rules on traceability which are coming into effect within 24 months, and 3) ESG compliance for public companies.”
In February, Aanika Bioscences was accepted into the BMA Reinsurance Innovation Hub.
The program will allow reinsurers to explore how the application of Aanika’s traceability and prevention technology can help reduce the size of claims while lowering premiums and expanding protection for the food and agriculture industry.
Aanika estimates its technology could help in the underwriting of nearly $100bn in premiums linked to contamination, recalls, crop insurance as well as non-safety related claims linked to ESG practices and general product liability.
