Climate Insurtech company, IBISA recently closed a US$3mn funding round to scale its parametric insurance solutions for weather-related risks in Asia and Africa
The strategic investment aims to empower IBISA to make parametric insurance more accessible. As reported by the Food and Agriculture Organisation of the United Nations (FAO), IBISA is providing simple and efficient parametric insurance products to help those affected by the climate crisis.
The company leverages innovative satellite and actuarial technologies to design and operate parametric insurance products that promote financial resilience in regions where communities are the most vulnerable to the impacts of extreme weather events. Since establishing a local presence in India in 2023, IBISA is placing a special emphasis on the country.
A number of innovative climate coverages offered by the company include agricultural-focused insurance products, as well as typhoon insurance, and loan protection for financial institutions. In addition, IBISA has also developed a groundbreaking heat stress product insurance initially designed for dairy farmers. Although being used primarily in India, the product is currently being expanded in other countries, such as Bangladesh.
“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,” explained CEO of IBISA, Maria Mateo. “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.”
Managing director of the Acumen Resilient Agriculture Fund (ARAF), Tamer El-Raghy who was one of the investors of the funding round, expressed his excitement to partner with a world-class entrepreneur like Maria, while emphasising the importance of low-cost parametric insurance products for African farmers.
“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,” El-Raghy said. “This investment is an invaluable addition to ARAF’s portfolio and we look forward to supporting IBISA’s regional growth.
