Delos Insurance Solutions – a company that uses wildfire science and satellite imagery expertise to solve homeowners’ wildfire insurance availability issues – recently announced a $7.3 million seed extension round. This funding round enables the company’s expansion in the California homeowners’ insurance market.
IA Capital Group led the seed extension round with participation from Blue Bear Capital; Gallatin Point Capital; Generation Space through Seraphim Space Investment Trust PLC; Avanta Ventures (the corporate venture arm of CSAA Insurance Group); Red Dog Capital; DNX Ventures; Robert Glanville; and Jonathan Crystal.
With large national carriers reducing their California homeowners’ exposure, Delos is doubling its commitment to the market by working with its committed carrier partners to expand insurance options for homeowners struggling to find coverage dramatically. And the Delos approach vertically integrates its wildfire science expertise and data from its full suite of wildfire models.
This empowers the company to pinpoint properties in stressed areas that the traditional market is avoiding due to potential wildfire concerns and do not pose a high risk of loss and offer those homeowners full insurance coverage. To date, not a single home insured by Delos suffered a wildfire loss, and they have never non-renewed a home for wildfire exposure.
Delos’ platform aggregates and analyzes exposure and concentration data for quantifying a home’s actual wildfire risk. And it is enabled by a proprietary geospatial AI algorithm and more than two hundred data layers inputs like detailed weather and wind data, drought, and precipitation history, and multi-level overlays of the amount, type, and health of vegetation.
As a specialist MGA, Delos can continuously update their data set with new information within six weeks, enabling the team to adapt and react to new evolutions in wildfire peril and remain profitable as climate continues to affect this catastrophe.
KEY QUOTES:
“This new funding round underscores Delos’ commitment to the California homeowners’ insurance marketplace and substantiates the success of our vertically integrated strategy. The significant growth of our homeowners’ insurance product over the past 12 months, combined with the confidence of our investors, helped us secure funding in a difficult environment. It enables us to write even more homeowners insurance policies through our independent agent network and partner carriers, who offer our policy in regions where they don’t write.”
— Delos CEO and Co-Founder Kevin Stein
“We are impressed by Delos’ success and growth trajectory in this incredibly challenging California wildfire insurance market. Delos provides homeowners with a creative and viable solution to the persistent problem of insuring homes in areas under threat of wildfire. We are pleased to provide further support to help fuel their expansion in California and beyond.”
— Matt Perlman, Partner at IA Capital
“The home insurance market in California is broken and while wildfire risk isn’t going anywhere anytime soon, neither are Californians. Delos leverages a depth of understanding in data-modeling, machine learning, and wildfire behavior that traditional markets currently don’t possess, all in the service of writing coverage. Blue Bear is excited to partner with Kevin, Shanna, and the rest of the Delos team as they face the wildfire problem head-on, with a data-driven, solutions-oriented approach.”
— Vaughn Blake, Partner at Blue Bear Capital
