Adaptive Insurance, a Texas-based climate resilience company, has secured $5m in a seed funding round to accelerate the rollout of its AI-driven parametric insurance solutions aimed at protecting businesses from climate-related disruptions.
The funding round was led by Congruent Ventures, with additional backing from Montauk Climate, Generation Space—the US arm of Seraphim Space—and private investors. The investment will support the national expansion of Adaptive Insurance’s flagship product, GridProtect, and the development of additional climate risk solutions.
Adaptive Insurance specialises in parametric insurance products that leverage AI and real-time climate data to provide businesses with financial relief from weather-related risks. By using predefined trigger events and automated claim settlements, the company aims to offer faster and more transparent payouts compared to traditional insurance models.
The newly raised capital will facilitate the launch of GridProtect, the first short-term power outage insurance product designed to provide immediate financial relief to businesses. The product uses parametric triggers to verify power disruptions and enable automatic payouts, reducing the financial impact of outages, which cost US businesses an estimated $150bn annually.
In addition to bringing GridProtect to market, Adaptive Insurance plans to use the funding to enhance its data analytics capabilities for more precise risk assessment, expand its data science and engineering teams, and develop additional parametric insurance solutions that address broader climate-related risks. The company aims to introduce new products by the end of the year.
Adaptive Insurance CEO and co-founder Mike Gulla highlighted the growing challenges posed by climate change and outdated insurance models. “After more than 20 years in the insurance industry, I’ve witnessed firsthand the growing impact of climate shifts on both the insurance market and consumers. With the severity of weather extremes, population shifts, regulations, and legacy systems, traditional insurance models simply aren’t agile enough to mitigate the immediate financial shocks that businesses face during increasingly frequent power outages.
“With GridProtect (and all our parametric solutions), we want to change that. By leveraging AI and real-time climate data, we’re offering businesses rapid relief and resilience against everyday weather events, eliminating the traditional waiting periods. We’re immensely grateful to have found like-minded investors keen to support us on this mission as we set out to change how businesses safeguard against climate risks.”
Kevin Kopczynski of Congruent Ventures added, “The environment is changing faster than our communities, infrastructure and traditional insurance can adapt – leaving businesses to bear the risk of increasingly frequent disruptions. Starting with GridProtect, Adaptive Insurance combines proven insurance sector experience with a forward-thinking, data-driven framework to offer customers simple and timely solutions to seemingly complex risks. We are excited to be partnering with the team to rethink what climate insurance can be.”
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