CatX, a platform that streamlines the inflow of alternative capital into the insurance industry, has secured £2.1 million in seed funding from leading Silicon Valley venture capital firms and angel investors from proprietary trading firms and hedge funds. The funding round is a significant milestone for CatX as it aims to bridge the gap between supply and demand in the reinsurance industry. Earlier this year, CatX was accepted into the Y Combinator startup accelerator program, which has a history of building successful companies such as Airbnb, Instacart, Doordash, Monzo, and Dropbox.
The reinsurance industry is struggling with a critical challenge caused by the lack of reinsurance capital, which is required to protect insurers from significant losses. This situation has resulted in substantial price hikes, particularly for risks such as natural disasters and cyber threats. In some instances, insurers have had to limit their coverage or discontinue writing business, such as hurricane insurance in Florida. CatX’s solution is innovative as they aim to bring more alternative capital into the market. They accomplish this by providing institutional investors with high-return investment opportunities and the necessary tools to understand insurance risks.
CatX’s co-founder and CEO, Benedict Altier, emphasized the firm’s vision to make the insurance industry more adaptable and robust in the face of global challenges. The company aims to close the growing protection gap and provide investors with a new asset class that is not correlated to traditional investments like stocks and bonds. CatX is already working with over 15 leading institutional investors, North American pension funds, hedge funds, and structured credit funds, enabling insurance companies to access billions in capital through the platform.
Sanford Lincoln from HackLegacy, an investor in the round, said the platform has transformative potential, offering a new model for the modern insurance market by opening access to investors outside of traditional reinsurance players and streamlining transactions with standardized paper and cutting-edge insights. He added that CatX would help expand the reinsurance transaction volume to create a more liquid risk market, ultimately reducing costs and expanding coverage opportunities for consumers worldwide.
CatX, a platform that streamlines the inflow of alternative capital into the insurance industry, has secured £2.1 million in seed funding from leading Silicon Valley venture capital firms and angel investors from proprietary trading firms and hedge funds. The funding round is a significant milestone for CatX as it aims to bridge the gap between supply and demand in the reinsurance industry. Earlier this year, CatX was accepted into the Y Combinator startup accelerator program, which has a history of building successful companies such as Airbnb, Instacart, Doordash, Monzo, and Dropbox.
The reinsurance industry is struggling with a critical challenge caused by the lack of reinsurance capital, which is required to protect insurers from significant losses. This situation has resulted in substantial price hikes, particularly for risks such as natural disasters and cyber threats. In some instances, insurers have had to limit their coverage or discontinue writing business, such as hurricane insurance in Florida. CatX’s solution is innovative as they aim to bring more alternative capital into the market. They accomplish this by providing institutional investors with high-return investment opportunities and the necessary tools to understand insurance risks.
CatX’s co-founder and CEO, Benedict Altier, emphasized the firm’s vision to make the insurance industry more adaptable and robust in the face of global challenges. The company aims to close the growing protection gap and provide investors with a new asset class that is not correlated to traditional investments like stocks and bonds. CatX is already working with over 15 leading institutional investors, North American pension funds, hedge funds, and structured credit funds, enabling insurance companies to access billions in capital through the platform.
Sanford Lincoln from HackLegacy, an investor in the round, said the platform has transformative potential, offering a new model for the modern insurance market by opening access to investors outside of traditional reinsurance players and streamlining transactions with standardized paper and cutting-edge insights. He added that CatX would help expand the reinsurance transaction volume to create a more liquid risk market, ultimately reducing costs and expanding coverage opportunities for consumers worldwide.
