Zurich-based InsurTech Riskwolf completed its first external funding round. This pre-seed investment was led by SICTIC and welcomed more than 10 investors from 6 countries across 3 continents including French astorya.vc and F10 into the Riskwolf family.“SICTIC investors see a huge business opportunity in Riskwolf's parametric insurance platform as a basis for many innovative insurance offerings. Working with the experienced founders and international team is a pleasure.” says Thomas Dübendorfer, SICTIC President and Lead Investor -representing a strong group of SICTIC’s angel investors.
The world is in the midst of a seismic shift in the way we work, travel and consume, driven by the digitalization of every aspect of our lives. As a result, new, uninsured risks are emerging. In 2019 alone, several billion user hours were lost due to Internet outages and network downtimes exposing a multi-billion dollar coverage gap.
Riskwolf is building the technology platform to deliver customized, parametric insurance to fill this significant protection gap and create innovative, untapped markets for the insurance industry. Its highly optimized platform is capable of detecting internet outages, modeling the insurance risks and making payouts in real time.
The difference to traditional insurance products
For traditional insurance products the insured pays a premium in return for a promise to cover the actual loss incurred of an incident or named peril. A parametric insurance solution is an agreement to make a payment not after an actual loss but upon the occurrence of a triggering event. The insurance cover is triggered if pre-defined event parameters are met or exceeded, measured by an objective parameter or index that is related to an insured's particular exposure. If the parameter or index threshold is reached or exceeded, a pre-agreed pay-out follows, regardless of actual physical loss sustained.
Jan Kastory, Founding Partner & LP at astorya.vc, a Paris-based InsurTech VC, says: “When claim payouts are pre-agreed, objective and instant, the most ungrateful insurance process suddenly disappears. This is the beauty of parametric insurance. For the underinsured digital economy, the telco and internet outages are only umbrella use cases. Defaulting payment APIs, SaaS companies, telemedicine or e-learning platforms will follow. Riskwolf allows any (re)insurer to enter the space. At astorya.vc, we are convinced by the way Thomas and René have been delivering their vision thus far.”
Pilot project with a leading global reinsurer
“Riskwolf was founded at the beginning of 2020 to unlock large, innovative insurance markets built on the newly emerging digital economy risks”, says CEO Thomas Krapf who co-founded the company with CTO René Papesch: “The idea is to bring parametric insurance to any insurer and give them the capabilities to underwrite internet downtimes and outages on a global scale.”
In cooperation with a leading global reinsurer, Riskwolf currently pilots its first outage benefit product in South East Asia. The company will use this investment to expand its product line, turbocharge its real-time, data-driven technology platform and accelerate its growth while building out its remote-first team. The team currently has members in Switzerland, Austria, Germany, Slovakia, the UK, Singapore, and India.
(Press release / SK)