Japan’s Tokio Marine Holdings has made a strategic investment in ICEYE, a provider of satellite data and services to inform decision-making and analysis, as part of the latter’s wider Series D funding round.
The recent funding round saw ICEYE raise $136 million in order to expand its natural catastrophes solutions, taking the company’s total financing since 2015 to $304 million.
It’s now come to light that Tokio Marine has invested in the SAR data provider as it looks to create new insurance solutions and services that leverage satellite data.
As part of the new collaboration, Tokio Marine and ICEYE will work together on numerous initiatives designed to facilitate the digital transformation of insurance claims capabilities. Additionally, the pair will develop new products and services aimed at tackling the growing frequency and severity of nat cat events and the growing impact of climate change.
2021 marked another year of above-average insured losses from catastrophe events, with some estimates as high as $130 billion for the year. While the estimates do vary, all are above the $100 billion threshold and highlight the increased influence of secondary perils, such as floods and wildfires, on annual losses.
Tokio Marine and ICEYE state that by applying the high-precision imaging capabilities of the latter’s satellite constellation and its Daily Coherent Ground Track Repeat technology, alongside working with its insurance team, the two firms will focus on the following three initiatives:
- To develop advanced insurance claims services for wind-related damage, using satellite images and auxiliary data to estimate the presence and extent of roof damage in the aftermath of a windstorm event.
- To develop processes that will accelerate insurance claims payments across all companies within the Tokio Marine Group and support the development of parametric insurance products.
- To develop more effective ways of detecting potential disasters through satellite data and supporting response efforts by monitoring changes on the ground.
Masashi Namatame, Group Chief Digital Officer, Tokio Marine Holdings, commented: “We are pleased to announce that Tokio Marine has entered into a strategic collaboration with ICEYE by participating in their Series D financing round.
“We have been working with ICEYE since 2020 and jointly developed an insurance claims processing solution for floods, that streamlines and enables quicker delivery of claim payments. This collaboration represents both ICEYE and Tokio Marine’s strong commitment to take positive action and initiative against additional risks. By combining ICEYE’s vertically integrated satellite solutions and Tokio Marine’s historical data, we strongly believe that we can develop multiple solutions to address serious natural catastrophe risks and support our customers and society throughout the world in their time of need.”
Rafal Modrzewski, CEO and Co-founder of ICEYE, added: “Our collaboration with Tokio Marine to date has been integral to the advancements that we have made in our insurance-focused solutions.
“Today’s announcement marks the next stage in our collaboration as we work to develop new products and services that have the potential to be transformative for insurance. By capitalizing on satellite data, analytical capabilities, artificial intelligence and machine learning, we can enhance responsiveness to catastrophic events, support more effective claims management, ensure speedier payment to those affected, and augment disaster detection capabilities.”
