Raincoat, a firm tackling the challenge of providing swift, scalable climate insurance solutions, has announced an additional seed funding of $6.5m.
The latest financing was spearheaded by TwoSigma Ventures, along with contributions from European VC firm Mundi Ventures, Revolution’s Rise of the Rest Seed Fund, and EleFund.
Raincoat’s modus operandi lies in delivering instantly processed individual claims in the aftermath of various climate disasters. In an era of increasing climate uncertainty, the company positions itself uniquely with a model that emphasises immediate relief and coverage for losses usually overlooked by traditional insurers. Raincoat’s embedded parametric insurance model allows its distribution channels to offer protection against a specified event’s occurrence using fixed parameters, like the event’s magnitude, rather than focusing on the scale of the losses incurred.
The new capital will be channelled towards expanding the company’s reach to new markets, providing quicker and more efficient FEMA-like services following major disasters such as hurricanes, earthquakes, wildfires, floods, droughts, and excessive rainfall. The company has set ambitious targets, aiming to safeguard the interests of 3 billion people and 120 million businesses worldwide that are at risk from the ravages of climate change.
Raincoat, since its inception, has already marked significant achievements. Within less than a year, the company has extended disaster relief protection to thousands of individuals and families, making timely payouts in all of their active markets.
Raincoat CEO and co-founder Jonathan González said, “We look forward to pushing the limits of what’s possible and bringing our technology to more communities thanks to this new round of capital. Insurance should be there to protect you – and the expectation of payment after a catastrophe should not create anxiety – but rather bring ease. We are innovating today for the current and future generations and look forward to working with more local and international players to make this happen.”
Raincoat’s genesis was in response to the devastating aftermath of Hurricane María, which ravaged Puerto Rico in 2017. The company was set up to tackle the slow and cumbersome claim process faced by residents, including the co-founders’ own families. Puerto Rico, three years on from the hurricane, is still grappling with $1.6bn in unresolved insurance claims.
Keep up with all the latest FinTech news here
Copyright © 2023 FinTech Global
