Insurdata raises $3m in seed funding

London, 15 April 2019 – Insurdata, the award-winning insurtech firm which specialises in the augmentation of peril-specific exposure and risk data via its Exposure Engine Platform, has today announced that it has secured $3 million from a group of investors, led by Anthemis and Menlo Ventures.

The investors are composed of both Venture Capitalists and Angels and also include: Alma Mundi Fund, Talis Capital, InsurTech Gateway, Ascend, Prototype Capital and the Baloise Group. Insurdata secured an initial tranche of funding of $1 million in October 2017.

Insurdata was launched in 2017 to address the lack of property-specific data available to the re/insurance market. The firm’s platform enables re/insurers to generate high-resolution, accurate, risk-specific data globally in real-time at all points in the underwriting workflow. This includes accurate geocode information, building attributes and first-floor elevation data.

By providing access to precise data, Insurdata aims to give underwriters greater confidence in modelled loss estimates and accumulation analyses, resulting in better risk selection and improved portfolio management. This in turn supports better, more accurately priced products, more resilient balance sheets and ultimately helps reduce volatility.

Commenting on the funding, Jason Futers, CEO, Insurdata, said: “We are delighted to have secured the backing of a fantastic range of investors who fully understand the criticality of the service that Insurdata provides to the re/insurance market. Our work to date has exposed material deficiencies in the quality and scope of information which underwriters are reliant upon, which in turn have a detrimental effect on their ability to accurately price risk and manage portfolios effectively.”

“Moving forward, we aim to capitalise on the fact that our Exposure Engine can be applied to any peril by working with re/insurers to introduce more refined data sets for a broad range of exposures, including flood, windstorm, earthquake, terrorism and cyber. We are also evolving the Insurdata Customer Portal to make access to high-resolution data as straightforward and speedy as possible.”

Ruth Foxe-Blader, Managing Director, Anthemis, said: “We are delighted to continue our support of Insurdata. As the re/insurance industry undergoes a period of readjustment in the aftermath of two major loss years, the quality and granularity of data that supports their underwriting decisions will be vital to their ability to manage volatility. The data consistency that Insurdata provides I believe will become an industry standard.”

Javier Santiso, Founder & CEO, Mundi, said: “Insurdata provides an excellent opportunity to invest in a deep technology company that refines and enhances the lifeblood of the re/insurance industry – data. Few other markets are as reliant upon such incredibly complex and comprehensive data sets. Ensuring that such information is of the highest possible quality and resolution to enable underwriters to make risk decisions with confidence should be a top priority for every organisation.”

Richard Chattock, CEO, InsurTech Gateway, said: “InsurTech is making major inroads into virtually every phase of the insurance process. Insurdata targets a core component of an insurer’s process – exposure data. In our view, the firm brings together the right expertise, the right technology and the right capabilities at an opportune time to make a crucial difference to the insurance market.”

Tom Williams, Principal, Talis Capital, said: “We are very excited to be partnering with Jason and his impressive team as they continue to provide a pioneering approach to risk data capture for insurers worldwide. With over 90% of modelled loss estimates for flood exposures currently underestimated by traditional methods due to a lack of accurate first-floor elevation data[1], this solution has the potential to vastly improve insurer analysis accuracy and significantly reduce their costs. We look forward to working with Insurdata as they boost their sales power and refine the technology to meet the ever-growing demand in the market”

[1] Source: Insurdata

BITESIZE IMPACT 25: INSURDATA REVIEW

Insurdata is the youngest company on Oxbow Partners Impact 25 list. Chris Sandilands, Partner of Oxbow Partners highlights the benefits that Insurdata offers to (re)insurers and brokers to improve insights used in underwriting, pricing, risk assessment and portfolio management in the firms monthly blog. The below is an extract from Chris’s article. The full piece is available to read here.

Insurdata recently concluded a pilot with reinsurer SCOR in Florida which revealed that 44% of properties (equating to 50% of total insured losses) were incorrectly geocoded in the existing dataset. Expected losses per location changed by up to 80% as a result of Insurdata repositioning. The pilot also revealed significant changes in both annualised and return period losses. Another pilot with a different company revealed that over 90% of locations were inaccurately geocoded at an average displacement in excess of 50m.

The technology scales to any portfolio size, but founder Jason Futers says Insurdata is most effective for addressing high impact issues (such as poor geocoding and the absence of first-floor elevation data) through a ‘data on demand’ service. He says the platform has the greatest perceived value at the point of underwriting.

Insurdata can be integrated via API, which Jason says will significantly reduce the time it takes for data to find its way through the value chain: some processes currently can take months of manual re-keying.

The platform is currently being used by clients based in the US and Europe. Jason says dozens of conversations with potential partners – including brokers, MGAs, insurers and reinsurers – are ongoing.

Insurdata says that for every dollar spent on its technology, users generate $13 of corrected technical premium for residential property, or $50 for commercial property.

The company received $1.3m in funding from partners including Anthemis and Plug and Play in October last year and is currently in advanced discussions for its next round. Headcount could as much as double to around 20 in the next 12 months to drive growth in multiple markets.

While the focus of the business is initially flood, the platform applications can be widened to other catastrophe events (e.g. terror) and to other impacts including infrastructure. Jason adds that Insurdata could be used for other coverages including parametric triggers in the future, and could support community responses to catastrophic events by advising on how and where new properties are built.

THE OXBOW PARTNERS VIEW
Insurdata was founded in 2017 and is the youngest company on the Impact 25. We included the company because the team is strong (Jason is ex RMS) and emerging results were impressive. This is a business that has come out of the gates quickly.

Exposure modelling is big business. Revenues of RMS, the leading loss modelling platform, were £233m in 2017, and Jason estimates that the total exposure-based (re)insurance analytics market is close to $1bn. (Re)insurers’ investment in modelling infrastructure and capabilities, for example the Oasis framework, suggests that investment in improved risk insight will continue for years to come.

 

The full article is available to read here

Thanks to Chris Sandilands and the team at Oxbow Partners for publishing their article in Oxbow Partner’s June 2018 blog.

For further information contact Jason Futers on jason.futers@insurdata.io

 

“Insurdata says that for every dollar spent on its technology, users generate $13 of corrected technical premium for residential property, or $50 for commercial property.”