Demex’s innovative parametric reinsurance solution covers losses from severe convective storms—including tornadoes, thunderstorms, hail, and wind—which have become increasingly frequent due to climate change. This enables insurers to safeguard their financial stability. Working alongside reinsurance brokers and companies, Demex arranges coverage for losses exceeding a pre-agreed threshold, a model that has gained traction with both customers and investors, binding $65M in reinsurance during its first selling season.
Bill Clark, President and CEO of Demex, commented: “The growing impact of these storms is a critical challenge for insurers, affecting annual earnings and balance sheet reserves. We’re fortunate to have investors who bring expertise in climate, technology, and insurance, helping us address this issue.”
Abe Yokell, Co-Founder and Managing Partner at Congruent Ventures, which led the round, noted: “Insurance carriers have been grappling with surplus losses from frequent storms for years. Reinsurers, too, have faced higher-than-expected losses from secondary perils. The Demex model, developed by a team with deep industry expertise, quantifies risk and mitigates volatility, ultimately strengthening the reinsurance sector for property owners.”
Hank Hattemer, COO of Blue Bear Capital, added: “Severe convective storms now cause more damage than traditional catastrophic events, which are typically covered by conventional reinsurance. Demex’s product is uniquely calibrated to each insurer’s data, making it a fundamentally new offering in the reinsurance market, with overwhelmingly positive feedback.”
The funding round’s investors come from diverse sectors, including climate-focused Congruent Ventures, energy and infrastructure specialist Blue Bear Capital, Silicon Valley-based Moxxie Ventures, and MetaProp, an investor in real estate technology.
