Descartes Underwriting, an insurtech focused on climate risk modeling and data-driven risk transfer, has raised $18.5 million in a series A funding round.
Co-led by Cathay Innovation and Serena, this latest round follows $2.5 million in seed funding from BlackFin Capital Partners.
The new funds will be used to support Paris-based Descartes’ goal of expanding into the US and Asia.
Descartes says it will also use the funds to grow its product range, target larger deals and deepen its tech capabilities and data science team.
“This is a good time to further expand our footprint. Non-life insurance is going through an existential crisis due to the growing impact of climate change and the Covid-19 pandemic: in addition to large losses, the sector is suffering from a lack of trust,” said Tanguy Touffut, CEO and Co-founder of Descartes Underwriting.
“With the support of our partners, we aim at rebuilding customer trust through a new generation of products that are tech-driven, fully transparent and providing swift claims payment.”
Marie Brayer, Partner at Serena added, “Descartes Underwriting has the rare potential to offer a good, transparent alternative to a multi-billion dollar industry as well as to provide emerging countries and global industry leaders with options to face global climate change with more resilience. We are really proud to back such an amazingly talented team.”
Jacky Abitbol, Partner at Cathay Innovation, explained, “Climate change is a massive challenge for many businesses through the World. By providing innovative parametric insurance products, Descartes Underwriting’s experienced team is supporting corporates of all size to cope with growing weather-related vulnerabilities.
“We are thrilled to support Descartes’ visionary management as they bring their next-gen AI solutions to the global stage. Together, we will make a positive impact to the insurance sector and to the world through technology.”
Julien Creuzé, Managing Director at BlackFin Capital Partners, noted “We are very happy to continue backing Descartes Underwriting and its stellar team which develop truly innovative insurance products for large corporates.
“Descartes Underwriting is one of the fastest growing insurtechs, we are glad to see Cathay and Serena joining forces with existing stakeholders to support its global expansion.”
