Technology-centric flood MGA, reThought Insurance has raised $10.5 million in a Series B funding round, which closely follows a successful $15.5 million round last summer.
According to the announcement, the capital expansion will be used to extend the distribution of its advanced commercial and High Net Worth flood insurance products, and to further hone its technology platform, which facilitates the most advanced flood underwriting capability in the industry.
reThought Insurance focuses on US commercial flood risks. It writes flood coverage for complex mid-tier commercial risks and high net worth properties.
According to the MGA, its advanced underwriting approach has delivered exceptional loss ratios for its capacity partners, despite recent major flood events including Hurricane Ian and the California storms earlier this month.
Cory Isaacson, Chief Executive and Founder of reThought Insurance, said: “The continued support of our existing investor partners, alongside the welcome addition of new, highly experienced insurance venture capitalists is a powerful endorsement of our market-leading technological approach, especially now, when InsurTech funding is receding. The private market for US commercial flood insurance is set to grow exponentially.”
InsurTech venture capital firm IA Capital Group led the round, joining existing investors Telstra Ventures, Hudson Structured Capital Management, ArcTern Ventures, and an unnamed strategic investor.
Matthew Perlman, partner at IA Capital, commented: “Recent events have underscored the growing severity and ubiquity of flood risk, and the urgency of closing the flood protection gap.
“As the contours of flood risk continue to change, we’re confident the reThought team will maintain and expand its edge as the most sophisticated flood underwriter in the market, and a high-performing partner to brokers and reinsurers.”