Wildfire property insurance solutions provider Delos has closed a $9-million Series A funding round.
The property management MGA, specializing in wildfire risk assessments through advanced satellite imagery and wildfire science, closed a funding round led by HSBC Asset Management and participated in by IA Capital Group, Blue Bear Capital, and Generation Space along with several angel investors.
Delos currently manages $40 billion in total insurance value, providing coverage to homeowners in wildfire-prone areas. The company's proprietary technology identifies properties with lower risk profiles, offering viable insurance solutions while traditional carriers continue to withdraw from these markets or significantly increase their rates.
The funding will support Delos's expansion geographically outside California.
"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.
Stein shared that the firm scaled back the funding requirements for this round despite being oversubscribed due to better-than-planned growth, loss ratios, and positive feedback from California homeowners.
Mike D'Aurizio, investment director at HSBC Asset Management's Climate Growth Partners, remarked that the company’s AI-driven approach is important in improving access to property insurance coverage, especially in California which is identified as a market under stress from growing climate catastrophes.
"Since partnering with Delos in 2019, we've been captivated by their innovative tech-driven approach to tackling the persistent wildfire crisis,” added Vaughn Blake, partner at Blue Bear Capital.
“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.”
Do you think this new funding will improve wildfire risk solutions in your region? Share with us your thoughts.
