Property insurance MGA, Delos Insurance Solutions, which uses wildfire science and satellite imagery expertise to solve homeowners’ wildfire insurance availability issues, has raised $9 million through a Series A funding round. The round was led by HSBC Asset Management and included IA Capital Group, Blue Bear Capital and Generation Space along with several angel investors.
Delos provides insurance solutions to homeowners in wildfire-stressed areas and currently writes $40bn in total insurance value. Its proprietary technology pinpoints properties that do not pose a high risk of loss. At the same time, traditional insurance carriers are continuing to abandon or increase rates for homeowners living in areas potentially exposed to wildfire.
Wildfires continue to challenge many parts of the country. Delos is committed to applying its technology and expertise to broaden access to insurance in a way that people can afford. The funding will help support this aim.
“We are enjoying working with a great, supportive group of investment partners, as we embark on the next phase of the Delos journey. We are looking to provide insurance outside California and develop new products to help people obtain the affordable insurance they deserve,” said Kevin Stein, CEO Delos Insurance Solutions. “We scaled back our funding requirements for this round, despite being oversubscribed. This is due to our better-than-planned growth, market leading loss ratios, and the positive response from California homeowners.”
The investment partners focus on financial sector solutions, insurance, climate change, and space, highlighting the breadth of expertise required to provide real, sustainable solutions to the impacts of climate change on our society.
“We are excited to support Delos by leading their latest funding round. Its proprietary wildfire forecasting, driven by AI, is improving access to property insurance coverage in California, a market that’s under stress from growing climate catastrophes. We look forward to working with the team as they expand across the US,” stated Mike D’Aurizio, Investment Director, Climate Growth Partners, HSBC Asset Management.
“Kevin and Shanna are exceptional founders who have assembled a fantastic team to tackle an immense challenge in enabling property insurance in wildfire-exposed areas. Having led the previous two funding rounds, we have seen them overcome every obstacle along the way to gain unparalleled success and credibility with homeowners, distributors, carriers and capital markets. They have proved out their cutting edge risk selection and pricing capabilities and are poised to continue to provide solutions to dislocated insurance markets in California and beyond,” commented Matt Perlman, Partner IA Capital Group.
“Since partnering with Delos in 2019, we’ve been captivated by their innovative tech-driven approach to tackling the persistent wildfire crisis. Their integration of data and machine learning is revolutionizing the insurance landscape, allowing them to swiftly create and sell policies. Delos is on the fast track to becoming a profitable leader, empowering people to live safely in their desired locations.,” said Vaughn Blake, Partner Blue Bear Capital.
“We are thrilled to continue supporting Delos through this next stage. The business has demonstrated the efficacy of its models with a significant portfolio and is now poised for substantial, scalable growth. With this team, technology, and product, they are well-positioned to expand their geographic footprint and product offerings, bringing wildfire insurance solutions to the masses,” added Lewis Jones, Vice President of Investment, Generation Space.
Last month, Delos was awarded MGA/MGU of the Year by Insurance Insider US and has just been named one of CB Insights’ Top 100 Global Fintech Companies for 2024.