More funding for flood risks insurer
HSCM Bermuda is among the latest investors in an American flood specialist insurance company.
Tech-enabled MGA reThought Insurance has completed a $15.5 million Series A investment round that it says will help fund its rapid growth in the flood insurance market.
Led by Telstra Ventures, the company said the fundraising also included participation from HSCM and ArcTern Ventures.
The company said HSCM's Andrew Sagon and Telstra Ventures' Marcus Bartram have joined the reThought board.
Existing venture funds invested in the insurtech include Menlo Ventures, ManchesterStory and Streamlined Ventures.
reThought said it currently focuses on writing flood coverage for complex mid-tier commercial risks and high net worth properties but is also developing offerings for other perils.
It said the capital raise will provide funding for the continued development of software and data sources, including the firm's proprietary model convergence engine and its high-definition risk data engine, as well as expansion of the sales team and technical resources.
There will also be investment in operational capabilities to be able to handle increased volumes of business and support faster growth, the company said.
Cory Isaacson, chief executive officer of reThought, said: "We're streamlining our operations and our goal is to automate the whole company.
"This round of funding will further our ability to provide the best underwriting from the most comprehensive sources of data available for our capacity providers, and ultimately help us meet our goal of closing the gap for US flood in ways that others have not done and cannot do, which puts us in a really unique position in the flood market."
The company said 85 per cent of commercial and residential properties in the US do not have flood coverage.
Flood premiums in the US average $7 billion, yet losses are reported at $15 billion annually with the potential to rise due to the impact of climate change.
The market is expected to reach $41 billion by 2024, the company said.
It also writes business interruption insurance and will work around the National Flood Insurance Program's limit cap of $500,000 by covering up to tens of millions of dollars.
HSCM Bermuda is the reinsurance and ILS investment management business arm of Hudson Structured Capital Management Ltd, the asset manager with a focus on the re/insurance and transportation sectors.