Investment by Battery Ventures in Descartes Underwriting Announced
In a significant move, Battery Ventures, a global technology-focused investment firm, has announced a strategic investment in Descartes Underwriting, a Paris-based company that leads the way in providing parametric insurance solutions for weather and natural catastrophe perils. The investment was made at a premium to Descartes’ 2022 Series B valuation, reflecting confidence in the company’s strong growth trajectory and its potential within the climate risk insurance markets.
Descartes Underwriting, founded in 2018, operates across more than 60 countries through 19 offices on four continents. The company's client base consists of over 230 professionals, serving a diverse clientele that includes corporates seeking to better manage complex climate, cyber, and emerging risks.
Marcus Ryu, Partner at Battery Ventures and the former CEO and co-founder of Guidewire Software, a $20 billion company providing cloud-based core systems and analytics for the P&C insurance industry, expressed his keen interest in applying technology to address the enormous underinsurance gap. He believes parametric insurance is one of the most promising approaches to transfer risk efficiently. Ryu will join Descartes as a board observer, bringing his wealth of experience to the table.
Descartes Underwriting's leadership in the parametric insurance space is evident in its market and thought leadership position with brokers, capacity partners, and insureds, as noted by Marcus Ryu. Tanguy Touffut, CEO and co-founder of Descartes, stated, "We have established ourselves as the leading parametric insurance business for climate-related risks."
The strategic partnership between Battery Ventures and Descartes Underwriting positions Battery Ventures to support and capitalise on the burgeoning demand for innovative, technology-driven insurance solutions addressing climate change challenges. Descartes' ongoing expansion is supported by key senior hires to bolster operations and claims processing, signifying a commitment to scaling and improving customer service internationally.
The company also collaborates with institutional investors and reinsurers, such as in the Lumyna – Twelve Capital Parametric ILS Fund, further underlining its significant role in evolving insurance-linked securities and risk transfer markets.
In 2024, Descartes Underwriting generated over $200 million in gross written premium, a testament to the company's success and growth. Touffut also mentioned that Descartes is scaling globally to address the widening protection gap around natural disasters.
This investment by Battery Ventures underscores the increasing intersection of technology, climate risk management, and insurance innovation, positioning Descartes Underwriting as a major global player in parametric insurance solutions critical for managing the financial impacts of climate change and related emerging risks.
- The strategic investment by Battery Ventures into Descartes Underwriting, a Paris-based leader in parametric insurance solutions, positions the firm to support and capitalize on the demand for innovative, technology-driven insurance solutions addressing climate change challenges.
- Marcus Ryu, Partner at Battery Ventures and a seasoned veteran in the insurance industry, expressed his keen interest in applying technology to address the enormous underinsurance gap, believing parametric insurance to be one of the most promising approaches to transfer risk efficiently.
- Descartes Underwriting's leadership in the parametric insurance space is evident in its market and thought leadership position with brokers, capacity partners, and insureds, as noted by Marcus Ryu, further underscoring its role in evolving insurance-linked securities and risk transfer markets.
- Tanguy Touffut, CEO and co-founder of Descartes Underwriting, stated that the company is scaling globally to address the widening protection gap around natural disasters, having generated over $200 million in gross written premium in 2024, a testament to the company's success and growth.
