IBISA gets funded to scale parametric climate insurance solutions in Asia and Africa

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Climate insurtech company IBISA has announced a $3 million funding round to help it scale its parametric insurance solutions for weather-related risks in Asia and Africa.

ibisa-logoIBISA is headquartered in Luxembourg and aims to deliver responsive parametric insurance solutions to protect vulnerable communities from climate and natural disaster risks, with affordability and accessibility high on the agenda.

Leveraging satellite technology and actuarial expertise, IBISA constructs parametric triggers and writes insurance designed to promote financial resilience and sustainable development, the company explained.

The funding round will be used to further expand the reach of IBISA’s parametric climate insurance products, and it was led by The Acumen Resilient Agriculture Fund (ARAF) and Equator, alongside the Asian Development Bank Ventures (ADBV) and existing investors including Ankur Capital.

Since its launch, IBISA has had a focus on delivering insurance to communities in India, having established a local presence in the country in 2023.

Currently, its parametric product range includes agricultural-focused insurance products, typhoon insurance, and loan protection for financial institutions.

In addition, a heat stress insurance product is being developed, initially designed for dairy farmers in India, and being expanded to other countries, such as Bangladesh.

Maria Mateo, CEO of IBISA, commented on the funding news, “Since the beginning at IBISA, we have functioned with great agility as product innovators and bringing these products to market efficiently. This is what drives us. This is our DNA. Now, we are entering the industrialisation phase of our journey. With the backing of this fundraising effort and the support of both existing and new investors, our goal is to amplify our product offerings, expand within our current markets, and explore new markets.”

Tamer El-Raghy, Managing Director of ARAF, added, “We’re honored to co-lead this investment round in IBISA with Equator and excited to partner with a world-class entrepreneur like Maria. African farmers are among the most negatively impacted by climate change and the need for low-cost parametric insurance products is a must-to-have for those farmers to be able to absorb a climate shock and IBISA’s cutting-edge technology helps developing low-cost insurance products for those farmers. This investment is an invaluable addition to ARAF’s portfolio and we look forward to supporting IBISA’s regional growth.”

Nijhad Jamal, Managing Partner of Equator, stated, “Investing in IBISA aligns with our strategy to back innovative ventures providing critical climate adaptation products and services. IBISA’s technology and business model specifically enable it to scale access to a broad range of affordable parametric insurance products across emerging markets.”

Thitirat Sittakaradej of ADB Ventures further commented, “IBISA’s cutting-edge approach leverages satellite data analytics and advanced risk modeling to make parametric insurance accessible and affordable for climate-vulnerable communities. In Asia and the Pacific, where increasingly frequent climate events often go uninsured, there is a growing need for platforms like IBISA that deliver fit-for-purpose solutions designed to seamlessly integrate with distribution channels. We are excited to support IBISA in its mission to advance climate risk insurance, a crucial way of fostering meaningful climate resilience in the region.”

Ritu Verma, Managing Partner at Ankur Capital, added, “It’s been an exciting journey working closely with IBISA over the last two years, as they leveraged their deep technical expertise in parametric insurance to scale their offerings and launch innovative new products to insure vulnerable communities and small businesses against adverse climate events. We look forward to continuing our support to IBISA’s vision of transforming climate insurance across Asia, Africa and the Pacific.”

The number of startups targeting parametric insurance continues to expand and funding markets are increasingly attracted to the sector.

It’s going to be interesting to see how many can successfully build a large and sustainable enough business to survive over the long-term, as to do so will require parametric insurance startups to have an edge, in terms of product and trigger design, efficiency, use of technology, and/or capital.

IBISA gets funded to scale parametric climate insurance solutions in Asia and Africa was published by: www.Artemis.bm
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  • June 27, 2024