December 10, 2021
2021 has been an amazing year for the team here at Demex. Our solutions for climate resilience continue to receive validation from customers such as Brookfield, Park’N Fly, and BGIS along with our partners at Vave, Markel, Muncih Re, Nephila, and Global Parametrics. Following our Series A, we’ve added many new team members and we continue to grow. We’ve also been recognized by several different groups as one of the leading InsurTechs and ClimateTechs in the market today.
During the holidays, it’s always nice to pause and reflect on year gone by and I thought it would be fun to share that reflection with you!
$9 million Series A
This month, we announced the completion of our Series A investment round. We’re so excited to move forward with the support and investment of Anthemis Group, Blue Bear Capital, QBE Ventures, and IA Capital Group.
This round drives expansion and advancement of our unique platform capabilities and offerings along with building our market outreach and growth team. Over the past two years, we’ve raised over $13 million. In 2020, we announced our $4.2 million seed round (also led by Anthemis and IA Capital) and launched our first-of-its-kind platform for analyzing, pricing, and transferring climate-linked risks at scale.
We recently welcomed Blue Bear Capital’s Hank Hattemer to our Board of Directors, and he explained why Blue Bear invested to propel our mission:
“We see an ecosystem teeming with new tools for ‘climate intelligence’ to help businesses understand the risk of volatile weather for their assets, operations and budgets. The question then becomes how to address that risk. Demex has built a masterful answer to this question – the definitive platform for pricing and transferring complex weather risks that are ubiquitous yet behave in highly localized ways. The Demex team has the industry experience and product development expertise to scale its platform as managing climate and weather risk becomes standard protocol for CFOs and risk managers in virtually every industry.”
First of-its-kind Insurance for Extreme Temperature
Powered by Demex, Vave is offering parametric extreme temperature insurance to commercial properties in the United States. Demex technology is embedded into Vave’s new policy offering and enables property-level temperature risk assessment and protection.
Extreme temperature protection will deliver up to $1,000 in cash relief to small-to-medium enterprises in the case of extreme cold. Cold weather claims help manage the immediate effects of lost revenue and unexpected costs.
The map above shows how Vave’s policy would have triggered automatic cold weather claims by location in the winter of 2020 if this policy had been in place. The claims are colored from dark green to dark blue, with dark green represented the minimum claim payment and dark blue identifying locations that would have received the maximum payment. Light green and light blue show mid-range claims.
Applied to last winter, Vave’s policy would have provided up to $1,000 of immediate relief for small businesses in much of the Midwest, Great Plains, and Texas, the regions marked in dark blue. For a business like a bingo hall in Texas, an extreme cold policy would have provided immediate relief to cover the lost week of business during February’s deadly winter storm.
Vave’s Head of Product Robert Porter said, “The addition of Demex parametric weather cover to the Vave Commercial Property Product will give small businesses increased peace of mind that they can continue to operate following extreme weather. Our collaboration with Demex continues the Vave tradition of finding innovative ways to offer consumers enhanced coverage.”
Andrew Freedman from Axios wrote a nice summary:
“Your home or business insurance could soon come with innovative options for extreme weather thanks in part to platforms developed by climate risk management companies like The Demex Group.” — Andrew Freedman, Axios
We are delighted to also announce that HolonIQ recently named us one of the top 200 Climate Tech companies in North America in 2021. Earlier this year, we were also inducted into Oxbow Partners “Impact 25” and recognized as part of the InsurTech Insights “Future 50.”
The inaugural list from HolonIQ includes 200 companies based in North America “making a substantial contribution to climate change mitigation or adaptation through the application of new technology or scientific knowledge.”
Our newest Demexers
I’m also excited to welcome new team members who joined during the second half of 2021! Mike Anderson, Lynne Trabachino, Larry Gloeckler, and Carlos Oliveras joined the Demex team. Additionally, Dan Falvey became our Head of Real Estate.
Mike joins as Head of Growth, and will drive revenue strategy as well as leading sales, marketing initiatives, and customer relationships. Mike has worked with many early-stage VC-backed technology and analytics startups, most recently as Chief Growth Officer at artificial intelligence and machine learning company boodleAI. Mike is based at our D.C. headquarters.
Carlos joins Demex as Head of Insurance, driving our growth and strategy in property and casualty insurance, reinsurance, brokerage, and alternative market structures. Carlos brings decades of experience in risk management, brokerage, insurance, and re-insurance, including time as an independent consultant as well as Managing Director at Kane, Inc. and Aon Risk Services. Carlos is based at Demex OG in Raleigh.
Lynne Trabachino joins Demex as Senior Director of Analytics for weather/climate risk pricing. She has a Ph.D. in Atmospheric Science and joins us from the faculty at Rutgers. Her background is in physics, systems engineering, finance, and weather and climate modeling. Lynne is also based in Raleigh.
Larry Gloeckler joins Demex as a Data Engineer for risk pricing, structuring, and transacting. He has a decade of experience worked as an applied meteorologist, most recently at Everstream Analytics. He holds a Ph.D. in Atmospheric Science from the University at Albany SUNY. Larry is based at Demex HQ in D.C.
Dan Falvey became Demex Head of Real Estate. He works closely with our customers to develop unique solutions and coverage options that are localized and customized to the property-level. Dan has over twenty years of experience, including as Managing Director at Cushman & Wakefield.
The Demex team is still growing! We are hiring many new positions in technology, growth and administration. For more information, check out this post.
On the road (again)
In September, Clarence and I attended the National Parking Association’s 2021 conference in Las Vegas. It is estimated that 35% of liability losses driven by snow and ice occur in parking lots and garages, and Demex delivers climate resilience for the parking industry by buffering the costs of severe winter weather.
The North American snow and ice management industry is estimated at about $30 billion. Demex provides solutions, offering localized coverage like fixed budget programs and insurance products that pay policyholders out following heavy snowfall. Our snow removal budget programs stabilize costs and, on average, save clients 20% in overall costs.
In October, I was back in Las Vegas for the 2021 InsurTech Connect conference. The housing industry faces monumental risks from extreme climate events. A September report from the Mortgage Bankers Association’s Research Institute for Housing America, however, shows that firms in housing and housing finance are unable to meet risk standards to even quantify climate risk. Demex addressees this climate risk gap. We are the future of InsurTech for data, analytics, and risk transfer capabilities that deliver climate resilience to every individual property around the world.
The picture above shows Clarence (pre-haircut) at the Demex booth at NPA’s conference — brochures designed by him!