The Demex Group, a risk analytics and intelligence firm specializing in weather and climate-related reinsurance solutions, has raised $10.25 million in funding. The raise combines a Series A and a previously closed SAFE funding round, led by Congruent Ventures with participation from Moxxie Ventures, MetaProp, and existing investor Blue Bear Capital.
Demex offers a groundbreaking parametric reinsurance solution designed to protect insurers from losses caused by severe convective storms—such as tornadoes, thunderstorms, hail, and wind—which are becoming more frequent due to climate change. By working with reinsurance brokers and companies, Demex provides coverage for losses exceeding a pre-determined threshold, helping insurers safeguard their financial stability. In its first selling season, Demex has already secured $65 million in reinsurance.
“Rising losses from these storms are a significant challenge for the insurance industry, impacting annual earnings and balance sheets. We are fortunate to have investors who bring expertise in climate, technology, and insurance to support Demex,” said Bill Clark, President and CEO of Demex.
Abe Yokell, Co-Founder and Managing Partner at Congruent Ventures, which led the funding round, noted that insurance carriers have faced years of financial strain due to frequent high-impact events like thunderstorms. “Reinsurers have also seen higher-than-expected losses from secondary perils. The Demex model, developed by an experienced team, quantifies risk and reduces deviations, creating a more resilient insurance industry.”
Hank Hattemer, COO of Blue Bear Capital, highlighted that traditional reinsurance typically addresses catastrophic events, while frequent extreme weather events like severe convective storms now cause more damage. “Demex delivers a custom-calibrated reinsurance product, tailored to each insurer’s data and exposure. This unique approach has received an overwhelmingly positive market response.”
The investment round drew support from a diverse group of investors. Congruent Ventures focuses on early-stage climate solutions, Blue Bear Capital backs high-growth companies in energy and climate sectors, Moxxie Ventures is a seed-stage firm investing across industries, and MetaProp specializes in real estate and property technology.
This funding will help Demex expand its innovative weather-related risk solutions and continue to support insurers in mitigating climate-related financial risks.
