Insurtech MGA using parametric call to brokers after $120m funding

Insurtech MGA Descartes Underwriting has raised $120m as it looks to expand relationships with brokers. 

The MGA wants brokers to place business for corporate and public coverage. 

Funding will be used to expand into new lines of business and grow its tech platform.

Descartes Underwriting specialises in solutions for climate change and emerging risks. It uses parametric insurance solutions to leverage new data sources combined with artificial intelligence.

Funding will be used to expand into new lines of business and grow its tech platform.

Tanguy Touffut, Descartes Underwriting’s chief executive and co-founder said: “The corporate insurance market is undergoing a momentous shift driven by a changing climate, the growing impact of natural catastrophes and a rise in emerging risks.

“Our aim is to be the global leader in delivering truly revolutionary solutions to brokers, corporations and public entities for these evolving exposures.

”With the support of our partners, we will continue to develop and deploy a new generation of insurance products that are entirely tech-driven, simpler, more transparent and quicker to pay in the event of a loss – adapted for the new risks corporations and governments increasingly face.”

The $120m in series B funding was led by Highland Europe alongside Eurazeo.

Other investors included BlackFin Capital Partners, Serena and Cathay Innovation, as well as new entrants Seaya Ventures and Mundi Ventures.

It comes 18 months after the insurtech’s $18.5m series A funding. 

Perfect match

Descartes was founded by a team of leading insurance and reinsurance practitioners, and it works with corporate brokers to offer bespoke and affordable insurance solutions to enable clients to better manage their exposure to climate-related and emerging risks worldwide. 

Touffut added that based on Highland Europe’s, Eurazeo’s, Seaya’s and Mundi Ventures’ track record and entrepreneurial mindset they were the “perfect match” for the insurtech to scale up with.

Guillaume d’Audiffret, managing director at Eurazeo, added: “With climate change and many other emerging risks including most recently the pandemic, corporates and public sector companies are increasingly experiencing the need to access comprehensive and transparent insurance that can cover them efficiently against critical external events.

“Since its inception three years ago, and thanks to its highly experienced team, Descartes has become a clear category leader in the parametric insurance market.”