Luxembourg, June 25, 2024 /PRNewswire/ — IBISA, a leading Climate Insurtech firm, has successfully concluded a $3 million funding round aimed at scaling its parametric insurance offerings designed to mitigate weather-related risks across Asia and Africa. The funding was led by The Acumen Resilient Agriculture Fund (ARAF) and Equator, in conjunction with the Asian Development Bank Ventures (ADBV) and existing investor Ankur Capital. This strategic investment will bolster IBISA’s efforts to enhance accessibility to parametric insurance solutions.
Amidst global agricultural losses estimated at $10-15 billion annually due to extreme weather events, IBISA is focused on providing straightforward and effective parametric insurance products to support communities affected by climate crises. Utilizing advanced satellite and actuarial technologies, IBISA develops and manages parametric insurance solutions that bolster financial resilience in regions highly susceptible to severe weather impacts. The company’s operations have been particularly impactful in India since establishing local operations in 2023.
IBISA currently offers a diverse portfolio of climate-centric insurance solutions tailored to meet the needs of various stakeholders worldwide. These include specialized insurance products for agriculture, typhoon coverage, and loan protection for financial institutions. Notably, IBISA has pioneered a groundbreaking heat stress insurance product initially aimed at dairy farmers in India, with plans underway to expand into Bangladesh and beyond.
The infusion of capital will enable IBISA to further innovate its product line and expand its footprint in emerging markets.
Maria Mateo, CEO of IBISA, commented on the company’s strategic direction: “From inception, IBISA has prided itself on agile product innovation and efficient market deployment. This ethos drives our mission. Now, with the support of this funding round and the backing of our investors, we are poised to scale our product offerings, deepen our presence in existing markets, and explore new opportunities.”
Tamer El-Raghy, Managing Director of ARAF, emphasized the significance of the investment: “We are proud to co-lead this investment round with Equator and are excited to partner with Maria, a visionary entrepreneur. In Africa, where farmers are disproportionately affected by climate change, the necessity for affordable parametric insurance solutions is critical. IBISA’s advanced technology enables the development of cost-effective insurance products, making this investment a valuable addition to ARAF’s portfolio.”
Nijhad Jamal, Managing Partner of Equator, underscored the alignment with their investment strategy: “Investing in IBISA aligns with our commitment to supporting innovative ventures that provide essential climate adaptation products and services. IBISA’s technological capabilities and business model uniquely position it to expand access to affordable parametric insurance products across emerging markets.”
Thitirat Sittakaradej from ADB Ventures highlighted IBISA’s role in advancing climate resilience: “IBISA’s pioneering approach leverages satellite data analytics and sophisticated risk modeling to democratize access to parametric insurance, particularly crucial in Asia and the Pacific where many climate events go uninsured. We are enthusiastic about supporting IBISA in its mission to enhance climate risk resilience in the region.”
Ritu Verma, Managing Partner at Ankur Capital, reflected on the journey with IBISA: “Our collaboration with IBISA over the past two years has been inspiring as they leverage their deep expertise in parametric insurance to scale their impact and introduce innovative products that protect vulnerable communities and small businesses from climate-related risks. We remain committed to supporting IBISA’s vision of revolutionizing climate insurance across Asia, Africa, and the Pacific.”
In conclusion, IBISA’s latest funding round marks a significant milestone in its mission to expand climate resilience through accessible parametric insurance solutions, underscoring its commitment to addressing the urgent challenges posed by climate change in vulnerable regions.
