San Francisco, CA, December 1, 2021
– Delos Insurance Solutions, a catastrophe insurance managing general agency (MGA) with a specialty in California wildfire-related risks, today announced that its seed funding round has closed. The $5.3 million round, led by IA Capital along with participation from Avanta Ventures, Red Dog Capital, a syndicate of strategic investors led by insurance executive Jonathan Crystal, and Futureland Syndicate, will permit Delos to further expand within the California homeowners insurance market, which is struggling with record-breaking wildfire losses. Delos proprietary underwriting technology empowers insurance carriers to profitably insure homes within areas that incumbents had deemed as high risk for wildfire.
“I am very pleased that our investors have shown such strong confidence in Delos and our technology,” said Kevin Stein, Co-Founder and CEO. “With this round of financing, Delos can go much further in achieving its dual mission of making reasonably priced insurance available to California homeowners while providing insurers and reinsurers a reliable stream of profitable revenue.”
Driven by persistent drought and excessive heat, among other factors, damage caused by California wildfires continues to exceed historical norms. Homeowners’ insurance carriers have taken corrective action, but many continue to lose money on wildfire-exposed business. Underwriters face increasing uncertainty in their risk selection criteria and pricing methodologies as the wildfire risk landscape continues to evolve under extreme conditions.
Delos’ underwriting model quantifies wildfire risk under a wide range of actual and hypothetical scenarios, even amid rapidly changing conditions. Using satellite images and other data sources, proprietary machine learning algorithms identify and quantify relationships among factors such as vegetation condition, ignition sources, weather, terrain, and loss mitigation measures. Delos has catastrophe modeling and climate modeling expertise vertically integrated into all levels of the company, allowing them to adapt and react immediately as the wildfire peril evolves. This confluence of machine learning technology, data, and expertise leads to more dependable data-driven underwriting, pricing, and portfolio management decisions.
“We are impressed by the robust science behind Delos’ innovative wildfire underwriting model,” said Matt Perlman, Partner at IA Capital. “Delos has developed a creative and viable solution to the persistent problem of insuring homes in areas under threat of wildfire. We are pleased to support them as they expand in California and beyond.”
“Delos, combining their technology, insurance, and wildfire experience, is writing this coverage line profitably and their catastrophe insurance modeling shows great potential,” said Steve Bernardez, Partner at Avanta Ventures.
Delos is presently focused on the California homeowners insurance market, which is under tremendous stress from widespread and escalating wildfire damage. Delos’ underwriting technology, however, is equally applicable to wildfire risk in other states and can be adapted to other catastrophic loss scenarios.
About Delos Insurance Solutions
Delos Insurance Solutions uses cutting-edge technology to offer insurance protection to homeowners in communities abandoned by other insurers because of wildfire risk. Founded in San Francisco in 2017 by aerospace engineers, Delos uses satellite imagery and artificial intelligence to identify insurable homes within territories deemed too risky by the rest of the insurance market. Delos is a Managing General Agent (MGA) offering policies on behalf of Canopius US Insurance, which is rated “A-” (Excellent) by AM Best.
About IA Capital
IA Capital Group is a New York-based private investment firm and manager of the Inter-Atlantic funds. IA Capital is dedicated to partnering with innovative entrepreneurs in venture and growth capital investments across insurtech and fintech.
About Avanta Ventures
As the venture capital arm of CSAA Insurance Group, Avanta Ventures empowers startups to bring fresh ideas forward in the areas of technology, insurance, and beyond.
Delos is an insurtech Managing General Agent that writes property insurance for wildfire-exposed homes. Delos leverages new data and machine learning to create more accurate wildfire underwriting risk models, enabling Delos to offer competitive pricing in high-risk regions.
Delos also leverages their analytics into a real time risk mitigation service to re-envision the consumer experience and protect consumers’ homes.
For more information visit http://www.getdelos.com or follow @getdelos.