Raincoat, a Puerto Rican startup that is developing scalable weather insurance solutions that allow individual claims to be processed instantly, has sparked an initial round of… 4.5 million US dollars. The tour was led by insurance technology investor Anthemis and includes support from SB . Opportunity Fund SoftBank Group.
Also participating in the first round were the leading bank Puerto Rico, Chilean financial group Consorcio, Miami-based 305 Ventures and Divergent Capital, which focused on deep technology or deep tech in spanish.
Building on the concept of modular insurance, through policy design and highly simplified payment mechanisms, Raincoat weather insurance solutions aim to provide governments, financial institutions and insurance companies with comprehensive automated products Protecting people affected by natural disasters such as hurricanes, earthquakes and floods.
This is in a country that is in the path of tropical cyclones in the Caribbean. Raincoat strives to provide a new generation of standardized insurance at scale, protecting people from more than 850 climate disasters that occur annually.
Raincoat was established in response to the aftermath of Hurricane Maria, which hit Puerto Rico in 2017, leaving millions without electricity and water for months, and severely affecting thousands of homes and businesses. Residents, including entrepreneurs, had to wait through a slow and cumbersome claims process to see if they would get a payment. However, after a long time, most of the claims were rejected, and 3 years later, there was still $1.6 billion in unpaid insurance claims on the island alone.
This round of investment is taking place at a difficult time for startups in Latin America, and also in a country that is not one of the most likely to attract investment. According to the Global Entrepreneurship Monitor (GEM) Puerto Rico 2020, for access to business finance, the country’s score increased from 3.4 in 2019 to 3.6 in 2020.
This data places Puerto Rico at 34th among the GPI economies: well below the United States (5.6), although in this case it is close to Mexico’s score (3.8).
How does Rain Coat work?
The startup is developing the infrastructure and capabilities to deliver an automated and scalable weather insurance solution that businesses and public entities can offer to people who need coverage in the event of a natural disaster.
While fully automated insurance is key to securing the most vulnerable against increasingly frequent climate catastrophes, the barriers to implementing these programs on a large scale are incredibly complex. Our team offers a fully operational and customized solution that can be integrated into our partners’ existing channels, making it easier for people to respond to claims.” Jonathan Gonzalez, Co-Founder and CEO of Raincoat In announcing this tour.
Its products are customized Help promote global climate adaptation and eliminate the persistent global coverage gap.
Today, Raincoat works with international insurers and governments around the world to protect farmers and people from catastrophic weather conditions that affect their businesses. Along the same lines, The startup has active corporate projects in Puerto Rico, Jamaica, Mexico and Colombia.
With this round of funding, Raincoat seeks to expand its services worldwide, providing a solution to more than 3 billion people and 120 million businesses are at risk of being affected by natural disasters.
Raincoat solutions have been used in large-scale implementations, such as the IDF Tripartite Project in Mexico, whose involvement includes the Government of Mexico, UNDP, AXA, Paribas Group, Guy Carpenter, Swiss Re and Munich Re .
