Extreme and volatile weather changes caused by climate change are increasing in both frequency and severity, as global economic losses from natural disasters, reaching $ 190 billion in 2020of which $ 101 billion is unsecured. Climate change has become a systemic risk and, along with socio-economic development, this type of uninsured loss continues to grow.
Traditional insurance alone cannot cover losses caused by extreme climate change. Parametric insurance is often used by large companies to protect their businesses from natural disasters and severe weather events. However, they have not been an option for SMEs so far, and distribution strategies are poor.
The platform uses satellite data to structure insurance solutions for severe weather conditions. The funding will be used to expand the team and further develop its technology.
The company structures insurance products for meteorological events, using its own algorithmic underwriting mechanism, RAPTOR, to provide SMEs with access to insurance products based on meteorological events. It uses meteorological data collected from such as the European Space Agency, NASA, which are then processed to structure parametric products.
James RandallCEO and co-founder of BirdsEyeView said: “We are working to develop our RAPTOR technology, which will help both insurers and policyholders get better and more accurate insurance services.
Ed Stevenson, an investment manager at SFC Capital, added: “The insurance industry is changing and adapting to the world as it grows. Climate change is a challenge for many industries and innovative technologies such as BirdsEyeView will help the industry move forward. ”