The Demex Group, a company specialising in climate and catastrophe peril parametric stop-loss reinsurance protection, has garnered investment of $10.25m.
The funding was secured in a Series A and earlier closed SAFE round.
Go deeper with GlobalData
Congruent Ventures led the round, which also included contributions from Moxxie Ventures, MetaProp and Blue Bear Capital, an existing investor.
Demex’s parametric reinsurance solution is designed to mitigate losses from severe weather events such as tornadoes, thunderstorms, hail and wind.
These events have become increasingly frequent and intense due to climate change, posing a significant threat to insurers’ financial stability.
Demex collaborates with reinsurance brokers and companies to provide coverage that activates once losses exceed a predetermined threshold.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe company reports that its business model is appealing to both customers and investors, having secured $65m in reinsurance during the initial selling season.
Demex leverages weather and claims data, guided by climate research, to model loss accumulation and offers parametric stop-loss solutions tailored for insurers and reinsurers.
Congruent Ventures co-founder and managing partner Abe Yokell said: “Insurance carriers are taking significant losses from high frequency events such as thunderstorms and have been digging into their surpluses for years.
“Reinsurers, too, have experienced higher than expected losses due to secondary perils. The Demex model – developed by a blue-chip team from industry heavyweights – quantifies risk and reduces deviation, which broadens reinsurance offerings and ultimately provides a stronger insurance industry for property owners.”
Demex president and CEO Bill Clark said: “Growing losses from these storms are a critical problem for the insurance industry – challenging insurance companies’ annual earnings and balance sheet surpluses. We are grateful to have investors who bring climate perspective, technology capabilities, a property mindset and insurance experience to Demex.”
This capital infusion follows Demex’s $5m raise last year, which was directed towards bringing its Retained Climate Risk Reinsurance (RCR Re) product to the market, focusing on severe convective storm and other secondary perils.
