ReThought Insurance has completed a $15.5 million Series A investment round to help fund its growth within the flood insurance market.
The insurer writes flood coverage for complex mid-tier commercial risks and high net worth properties, but is also developing offerings for other perils.
The funding will go towards providing funding for the continued development of software and data sources as well as expansion of the sales team and technical resources.
There will also be investment within its operations to be able to handle an increased volume of business and to support faster growth.
The company claims that 85% of commercial and residential properties in the US do not have flood coverage.
Flood premiums in the US average $7 billion, yet losses are reported at $15 billion annually with the potential to rise due to the impact of climate change. The market is expected to reach $41 billion by 2024.
The round was led by Telstra Ventures, with the participation from Hudson Structured Capital Management, doing the re/insurance business as HSCM Bermuda, and ArcTern Ventures.
HSCM’s Andrew Sagon and Telstra Ventures’ Marcus Bartram have joined the reThought board.
Existing venture funds invested in the insurtech include Menlo Ventures, ManchesterStory and Streamlined Ventures.
ReThought CEO Cory Isaacson commented: “We’re streamlining our operations and our goal is to automate the whole company.
“This round of funding will further our ability to provide the best underwriting from the most comprehensive sources of data available for our capacity providers, and ultimately help us meet our goal of closing the gap for US flood in ways that others have not done and cannot do, which puts us in a really unique position in the flood market.”
Marcus Bartram, General Partner at Telstra Ventures added: “Telstra Ventures is excited to be investing in and supporting the team at reThought, an emerging leader in flood insurance MGAs.
“Climate change is rapidly driving increasing risk around the globe. Building new models that apply data and technology is necessary and that is why we invested in Cory Isaacson and his extraordinary team that bring deep knowledge and problem-solving skills.”