reThought Flood, a technology-centric underwriting agency specialising in US flood risk, has unveiled two significant developments poised to strengthen its position in the insurance industry.
In a strategic move, reThought has finalised an agreement to acquire CyberBoxer, a prominent insurTech company renowned for its expertise in data science, modeling, artificial intelligence (AI), and underwriting.
This acquisition allows reThought to integrate CyberBoxer’s talented workforce into its operations fully, marking a pivotal step toward bolstering its analytical capabilities. The terms of the deal remain undisclosed.
Cory Isaacson, CEO of reThought Flood and former Chief Technical Officer at RMS, affirmed that reThought would not venture into the cyber insurance sector but would leverage CyberBoxer’s proficiencies in catastrophe modeling, data science, underwriting, and AI.
This strategic move aims to enhance efficiency for brokers and customers, positioning reThought as a multinational insurance group comprising reThought Insurance OÜ and reThought Insurance Pvt Ltd, while also providing an active presence in crucial markets, including the European Union.
Amit Rai, founder of CyberBoxer, emphasised the fortuitous synergy between the two companies, stating that their collaboration had led to the discovery of a unique partnership opportunity within the flood risk domain.
Separately, reThought Flood has received a substantial $1 million investment from the ClimateTech Fund of Connecticut Innovations, the state’s strategic venture capital arm. This injection of capital will fuel reThought’s ongoing expansion efforts.
Konstantine Drakonakis, Managing Venture Partner for the Climate Tech Fund at Connecticut Innovations, cited two key factors behind their decision to invest.
First, the escalating significance of flood insurance amid climate change-driven weather events, and second, their trust in reThought’s seasoned team of experts with a proven track record in catastrophe risk modeling, underwriting, and brokerage experience.
Cory Isaacson expressed gratitude for Connecticut Innovations’ investment, emphasising their commitment to leveraging technology to create a robust and sustainable private flood insurance market in the USA.
This initiative aims to address the challenges posed by climate change while supporting businesses and homeowners through this critical transition.
