FutureProof Technologies, a climate-focused P&C insurtech, has raised $6.5 million in capital, which it has employed to establish a managing general agency (MGA) entity.
The capital raise, which was led by AXIS Digital Ventures with participation from prior investors Innovation Endeavors and MS&AD Ventures, brings FutureProof’s total funding to nearly $10 million.
Using artificial intelligence techniques, FutureProof predicts wind and flood losses to help re/insurers select, price, and manage risk more profitably.
The insurtech is comprised of a team of insurance industry veterans, data scientists, economists, and climate scientists, with co-founders including Chief Insurance Officer Fid Norton, who most recently served as Chief Risk Officer at XL Catlin.
“As climate risk escalates, and natural disasters continue to cause unprecedented levels of financial losses, it will widen the coverage gap and propagate underinsurance. The insurance industry knows it needs a new generation of underwriting, pricing, and portfolio management tools for managing weather- and climate-related P&C risk,” said Alisa Valderrama, co-founder and CEO at FutureProof.
“Our underwriting will help close the coverage gap and increase financial resilience to climate-linked losses from hurricanes and floods. Pricing this risk will create incentives to invest in climate adaptation measures.”
Norton also commented: “This capital raise enables us to add top underwriting, portfolio risk management, and engineering talent as we launch FutureProof’s digital MGA later this year.”
“Our ground-breaking technology will improve the profitability and return on equity for our carrier and reinsurance partners, and the algorithmic underwriting engine we build to deliver our results will provide faster quotes to our wholesale broking partners.”
“FutureProof is a trailblazing startup that will provide innovative climate risk underwriting solutions to the market,” added Linda Ventresca, Chief Strategy Officer for AXIS Capital.
“AXIS Digital Ventures is proud to partner with FutureProof and support its mission, which aligns with our own business priorities, beliefs and values. At AXIS, we believe the (re)insurance industry has a critical role to play in addressing climate change and we share FutureProof’s commitment to building a more climate-resilient world.”