Demex Group, a firm specializing in stop-loss reinsurance protection and risk analytics, raised $10.25 mn through a Series A and previous SAFE funding round, led by Congruent Ventures. Moxxie Ventures, MetaProp, and existing investor Blue Bear Capital also participated.
Demex offers a parametric reinsurance solution for losses from severe convective storms like tornadoes, hail, and wind.
These storms, becoming more frequent due to climate change, pose a growing threat to insurers. Demex works with reinsurance brokers and companies to arrange coverage for losses above a specified threshold.
The company bound $65 mn in reinsurance during its first sales season, gaining attention from both customers and investors.
The increasing impact of these storms presents a major challenge for insurers, affecting both annual earnings and reserves. We’re fortunate to have investors with expertise in climate, technology, and insurance, helping us tackle this issue.
Bill Clark, President and CEO of Demex
Abe Yokell, Co-Founder and Managing Partner at Congruent Ventures, remarked: “Insurers have struggled with surplus losses from frequent storms for years. Reinsurers, too, have faced unexpected losses from secondary perils. Demex’s model, created by a highly experienced team, quantifies risk and reduces volatility, strengthening the reinsurance sector.”
Hank Hattemer, COO of Blue Bear Capital, added: “Severe convective storms now cause more damage than traditional catastrophic events, which are typically covered by conventional reinsurance. Demex’s product is tailored to each insurer’s data, making it a new and well-received solution in the reinsurance market.”
The investors in this round come from a range of sectors, including climate-focused Congruent Ventures, energy specialist Blue Bear Capital, Silicon Valley-based Moxxie Ventures, and MetaProp, a real estate technology investor.
by Yana Keller
