Parametric power outage startup Adaptive closes $5 million funding round

By Henry Gale

Feb 25 - (The Insurer) - Startup Adaptive Insurance said on Tuesday it had raised $5 million to fund the launch of a parametric product for power outages and weather risks by the end of the year.

The seed funding round was led by Congruent Ventures, with participation from Montauk Climate, Generation Space and private funders.

Adaptive was launched in October by two former Hippo executives with an initial focus on providing U.S. businesses with cover for power outages.

The investment will be used to bring this product to market and develop additional parametric insurance products for climate and weather risks to launch by the end of the year, the company said.

"With the severity of weather extremes, population shifts, regulations, and legacy systems, traditional insurance models simply aren't agile enough to mitigate the immediate financial shocks that businesses face during increasingly frequent power outages," said co-founder and CEO Mike Gulla.

"With GridProtect (and all our parametric solutions), we want to change that. By leveraging AI and real-time climate data, we're offering businesses rapid relief and resilience against everyday weather events, eliminating the traditional waiting periods."