In a significant move to address the pressing issue of homeowners’ insurance availability in wildfire-prone areas, Delos Insurance Solutions has announced a successful $7.3 million seed extension funding round.
The financing, led by IA Capital Group and joined by notable investors such as Blue Bear Capital, Gallatin Point Capital, Avanta Ventures, and others, positions Delos to expand its footprint in the California homeowners’ insurance market.
While many national insurance carriers are scaling back their exposure in California due to wildfire concerns, Delos is steadfast in its commitment to the market. The company is collaborating closely with dedicated carrier partners to broaden insurance options for homeowners struggling to secure coverage.
Delos adopts a unique approach that integrates its wildfire science expertise and comprehensive wildfire modeling data to identify properties in areas deemed “stressed” by the traditional market but with lower actual risk of wildfire-related losses. Notably, no home insured by Delos has ever suffered a wildfire loss, and they have never non-renewed a policy due to wildfire exposure.
Delos’ proprietary platform leverages cutting-edge geospatial AI algorithms and over 200 data inputs, including detailed weather patterns, wind data, historical drought and precipitation records, and vegetation health assessments. This enables Delos to accurately quantify the wildfire risk associated with individual properties.
Delos CEO and Co-Founder, Kevin Stein, expressed the company’s dedication to the California homeowners’ insurance marketplace and the success of its vertically integrated strategy.
Stein stated, “The significant growth of our homeowners’ insurance product over the past 12 months, combined with the confidence of our investors, helped us secure funding in a difficult environment. It enables us to write even more homeowners insurance policies through our independent agent network and partner carriers, who offer our policy in regions where they don’t write.”
Matt Perlman, Partner at IA Capital, commended Delos’ achievements, saying, “Delos provides homeowners with a creative and viable solution to the persistent problem of insuring homes in areas under the threat of wildfire. We are pleased to provide further support to help fuel their expansion in California and beyond.”
Vaughn Blake, Partner at Blue Bear Capital, emphasised the significance of Delos’ data-driven approach, stating, “Delos leverages a depth of understanding in data-modeling, machine learning, and wildfire behaviour that traditional markets currently don’t possess, all in the service of writing coverage. Blue Bear is excited to partner with Kevin, Shanna, and the rest of the Delos team as they face the wildfire problem head-on, with a data-driven, solutions-oriented approach.”