Today’s omnipotent digital economy continues to rule many people’s lives, bringing a host of unforeseen risks. In 2019 alone, several billion user hours were lost due to Internet outages and cloud downtimes, exposing a multi-billion dollar coverage gap. In addition, changing weather patterns lead to more pressure and potential damages in the network infrastructure, leading to higher frequency of outages and losses. To this day, assessing the level of risk for insurance companies has been challenging, mainly due to the complexity and uncertainty of digital threats.
Riskwolf is building the technology platform to deliver customised, parametric insurance to fill the new significant protection gap and create innovative, untapped markets for the insurance industry. Using unique real-time data and dynamic risk modelling, the startup enables insurers to build and operate parametric coverage for weather-related and digital risks. The highly optimised platform can detect weather and network anomalies, model the insurance risks and make payouts in real-time.
According to Thomas Krapf, CEO and Co-Founder, insurers and re-insurers already use a series of standard models to assess parametric risks. Thus, through Riswolf, they can build various insurance products for a wide range of issues such as transport and travel, IoT and machine breakdowns, weather-related issues, and non-business interruptions, among others.
The startup has already attracted its first customers, including a global re-insurer planning to launch insurance services in the ASEAN region. Other non-disclosed companies have signed a memorandum of understanding for pilot projects across Asia, the DACH region, the UK, and Canada to address SMEs/gig workers and food delivery drivers and farmers for weather-related risks.
With the aim to become a global leading enterprise solution for digital insurance, Riskwolf has set its eyes on growing markets such as India where the consumer digital economy is projected to be a US $800 billion market in 2030 – approximately 10x growth from 2020. Together with swissnex India, the startup has conducted market validation studies, leading to the first projects in the country.
In preparation for its upcoming seed round, Riskwolf has raised CHF 400’000 in a bridge financing round, which saw the participation of SICTIC, Serpentine Ventures and an Asian investor. The proceeds from the round will enable the company to accelerate pilot studies in identified markets. The company is currently preparing for a seed round scheduled for later this year in Fall.