Descartes Underwriting, an insurance coverage tech firm specializing in local weather danger modeling and switch, at this time introduced it has raised $18.5 million. A spokesperson instructed VentureBeat the funding will likely be used to help Descartes’ world growth into the U.S. and Asia, in addition to the opening of recent workplaces in New York and Singapore.
Injecting insurance coverage processes with AI isn’t a brand new thought, but it surely may ease uncertainty across the pandemic. The Paris-based agency claims it leverages numerous sources — together with web of issues and distant sensing gadgets — that feed into AI and laptop imaginative and prescient algorithms to make predictions about danger.
Descartes works with brokers, insurers, and reinsurers to provide you with property and casualty insurance coverage options throughout industries and geographies. For a restricted variety of insurance coverage companions, the corporate additionally designs customized options with pricing engines, backends, and APIs.
Descartes is considerably versatile when it comes to the property and casualty dangers it covers, but it surely principally offers in enterprise interruption following pure catastrophes (like cyclones, earthquakes, and floods) and monetary losses brought on by wildfires, droughts, excessive or low temperatures, and excessive rainfall. It’s additionally business-agnostic and operates throughout agriculture, mining, development, vitality, banks, leisure, and retail segments.
The insurance coverage tech market is pink sizzling. Final yr, on-line platform Subsequent Insurance coverage, which targets small enterprise homeowners with a give attention to particular niches (like landscaper insurance coverage and private coach insurance coverage), raised $250 million. In March 2019, Washington, D.C.-based employees’ compensation insurer Pie Insurance coverage introduced in $45 million, only a month after CoverHound nabbed $58 million. And in June, Planck raised $16 million for its AI-powered industrial danger insurance coverage platform.
However cofounder and CEO Tanguy Touffut says enterprise is booming. In 18 months, Descartes signed on near 100 company prospects, together with a number of within the Fortune 500.
Serena led the funding spherical, with participation from Cathay Innovation and BlackFin Capital Companions. It brings Descartes’ complete raised to over $20 million, following a $2.5 million seed funding spherical from BlackFin final yr.