Insurtech Attracts $15.5M to Its Commercial, High Net Worth Flood Insurance Platform
Colorado-based reThought Insurance, a managing general agency focused on the flood insurance market, has secured $15.5 million in investment to accelerate its growth.
The company currently writes flood coverage for complex mid-tier commercial risks and high net worth properties but is also developing offerings for other perils.
Its new cash influx will fuel continued development of software and data sources, including the firm’s proprietary model and risk data engines, as well as expansion of its sales team and technical resources.
“We’re streamlining our operations and our goal is to automate the whole company,” reThought CEO Cory Isaacson said in prepared remarks.
Isaacson said the funding will further its ability to provide underwriting from the most comprehensive sources of data available, and ultimately help it meet its goal of “closing the gap for U.S. flood in ways that others have not done and cannot do.”
The startup says that its technology lets it target a broad range of complex risks, including major public transit, underground parking garages and outdoor swimming pools. reThought also writes business interruption insurance and will work around the National Flood Insurance Program’s (NFIP) limit cap of $500,000 by covering up to tens of millions of dollars, the company said.
The company claims its engineering approach to underwriting has yielded extremely accurate results, resulting in very low loss ratios and a consistent stream of added capacity providers, including last month’s partnership with Skyward Specialty to provide primary and excess limits of up to $20 million per risk.
The company launched in 2017 initially as a response to protecting against flood risk amid climate change. Co-founders are CEO Cory Isaacson (previously CTO of RMS), Chief Innovation Officer Nicholas Lamparelli (also a partner at InsNerds.com) and president of reThought Specialty, James Rice (a veteran of RMS, AIR Worldwide and Insurity).
Several investors participated in the insurtech’s Series A round. Telstra Ventures led the financing, which also included participation from Hudson Structured Capital Management, doing insurance/reinsurance business as HSCM Bermuda, and ArcTern Ventures.
As part of the financing, HSCM’s Andrew Sagon and Telstra Ventures’ Marcus Bartram have joined the reThought board. Existing venture funds invested in reThought include Menlo Ventures, ManchesterStory and Streamlined Ventures.
Source: reThought Insurance