The Demex Group, which is a risk analytics and intelligence company that facilitates innovative stop-loss reinsurance protection, announced it has raised $10.25 million through a Series A and previously closed SAFE funding round led by Congruent Ventures and included Moxxie Ventures, MetaProp, and existing investor Blue Bear Capital.
Demex offers a parametric reinsurance solution for losses due to severe convective storms – including tornadoes, thunderstorms, hail and wind – which have become more frequent due to climate change, enabling insurers to protect their financial security. And in partnership with reinsurance brokers and reinsurance companies, Demex arranges coverage for losses above a specified amount. This model resonates with customers and investors with $65 million of reinsurance bound in the first selling season.
KEY QUOTES:
“Growing losses from these storms are a critical problem for the insurance industry – challenging insurance companies’ annual earnings and balance sheet surpluses. We’re grateful to have investors who bring climate perspective, technology capabilities, a property mindset, and insurance experience to Demex.”
– Bill Clark, President and CEO of Demex
“Insurance carriers are taking significant losses from high frequency events such as thunderstorms and have been digging into their surpluses for years. Reinsurers, too, have experienced higher than expected losses due to secondary perils. The Demex model – developed by a blue-chip team from industry heavyweights – quantifies risk and reduces deviation, which broadens reinsurance offerings and ultimately provides a stronger insurance industry for property owners.”
– Abe Yokell, Co-Founder and Managing Partner of Congruent Ventures who led the round
“Higher frequency extreme weather events, like severe convective storms, now cause more damage than the catastrophic events that are addressed by traditional reinsurance. Each Demex insurer customer gets a reinsurance product that is precisely calibrated to how those weather events affect its business, tuned based on its own data. No other reinsurance product that I’m aware of works like this – it is a fundamentally new product and the market response has been overwhelmingly positive.”
– Hank Hattemer, Chief Operating Officer of Blue Bear Capital
