reThought Insurance, a digital MGA aimed at the flood insurance market, has closed its Series A round on $15.5m.
The round was led by Telstra Ventures, with commitments also coming from Hudson Structured Capital Management (HSCM) and ArcTern Ventures.
With this burst of funds, the InsurTech company plans to further the development of its software and data sources. This includes improving its model convergence and risk data engines.
Alongside this, the company is looking to increase the size of its sales team and technical resources.
Launched in 2017 by co-founders Cory Isaacson, Nicholas Lamparelli and James Rice, the company was created in response to protecting businesses against rising flood risk due to climate change. It claims its technology can reduce loss ratios.
The InsurTech company claims 85% of commercial and residential properties in the US have no flood coverage. It also states flood premiums in the country average $7bn annually, despite losses believed to be around $15bn.
reThought CEO Cory Isaacson said, “We’re streamlining our operations and our goal is to automate the whole company.
“This round of funding will further our ability to provide the best underwriting from the most comprehensive sources of data available for our capacity providers, and ultimately help us meet our goal of closing the gap for US flood in ways that others have not done and cannot do, which puts us in a really unique position in the flood market.”
As part of the deal, HSCM vice president Andrew Sagon and Telstra Ventures partner Marcus Bartram have joined the reThought board of directors.
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