An InsurTech MGA focused on commercial auto insurance has raised $16 million in new Series A financing. A climate-risk related InsurTech raised $4.2 million in new seed financing.
High Definition Vehicle Insurance, an InsurTech MGA focused on commercial auto insurance, raised $16 million in new financing.
Munich Re Ventures and 8VC led the Series A round, in which Qualcomm Ventures and Autotech Ventures also participated.
HDVI, a Chicago based startup launched in 2018, said it will use the funding to scale up its growth, expand its products and hire more people. Specifically, this includes expanding the team, launching into new states, and launching additional technology features for agents, fleets, and drivers.
HDVI CEO and co-founder Chuck Wallace was a co-founder of Esurance (now part of Allstate). Another HDVI co-founder – Reid Spits is a former investors (at 8VC) who was focused on InsurTech and logistics.
HDVI is targeting small and mid-size trucking fleets with its coverage. The company said it provides fleet operators with an integrated suite of hardware, software, and services that helps them manage their safety, compliance, and operations, as well as a next-generation insurance product designed to reward fleets and drivers for operating safely. Telematics is a vital part of the technology.
The Demex Group, a climate risk InsurTech, raised $4.2 million in seed funding from financial services investors Anthemis and IA Capital Group.
The startup is based in the metro-Washington, D.C. area, and pitches its technology as helping to customize and deliver climate resilience through financial risk products and services on a global scale.
Plans call for using the money to build out the Demex team and to support go-to-market for municipalities and enterprise customers, which include Fortune 500 property managers with highly volatile year-to-year snow-removal expenses.
Operating at the intersection of banking and insurance, The Demex Group is pitched as bringing together decades of experience across technology, finance, risk management, capital markets, commodities, insurance, and climate science to develop cutting-edge technology and customized financial solutions that mitigate unique weather risks and seize climate-linked business opportunities.
The Demex platform for climate resiliency is an “end-to-end ecosystem” designed to shield customers from the financial surprises of volatile weather so they can grow their businesses.
Matt Perlman, a partner at IA Capital Group, said the technology helps analyze client’s specific exposures “in a very granular way and generate a precisely calibrated risk transfer solution[that] goes far beyond traditional weather derivatives and represents the frontier of parametric insurance.”
A division of Munich Re – Munich Re Trading LLC (MRTL) – has a previous relationship with Demex, where they jointly developed customized weather index linked hedging instruments to help businesses manage non-catastrophic weather risks (MRTL provides weather risk transfer products and services for industries impacted by increased weather variability.) MRTL continues to provide risk capital and back office support to Demex as it innovates in the climate and weather risk management industry, Demex said.
Sources: HDVI, The Demex Group