The company announced that it has raised $18.5 million in a Series A funding round, which will be used to support its global expansion to the United States and Asia, including Singapore.
The funding round was led by venture capital firms Serena, Cathay Innovation and BlackFin Capital Partners, which raised $2.5 million in seed funding 18 months ago, an announcement on Tuesday said.
The funds will also be used to support the firm's ambition to grow and lead the global parametric insurance space in the corporate segment. Unlike traditional insurance products, parametric insurance covers the likelihood of a predefined event happening – for example, a major flood – and pays out according to a predefined plan.
Building Climate Resilience
«This is a good time to further expand our footprint. Non-life insurance is going through an existential crisis due to the growing impact of climate change and the Covid-19 pandemic: in addition to large losses, the sector is suffering from a lack of trust,» Tanguy Touffut, CEO and Co-founder of Descartes Underwriting, said in the announcement.
The Paris-based startup, founded in 2019, specializes in climate risk modeling and data-driven risk transfer. It works with brokers and (re)insurers to develop Property & Casualty insurance solutions across a variety of sectors and geographies.
Descartes currently works with close to 100 corporates globally, including Fortune 500 companies and governments, to build resilience in the face of climate change and natural catastrophes.
