IBISA raises $3 million to expand parametric insurance in Asia and Africa
IBISA raises $3 million to expand parametric insurance in Asia and Africa | Insurance Business Asia
Technology
IBISA raises $3 million to expand parametric insurance in Asia and Africa
Funding expected to benefit agriculture sector
Technology
By
Roxanne Libatique
IBISA, an insurtech company focusing on climate resilience, has raised $3 million in a recent funding round to expand its parametric insurance solutions for weather-related risks in Asia and Africa.
The round was led by The Acumen Resilient Agriculture Fund (ARAF) and Equator, with participation from Asian Development Bank Ventures (ADBV) and existing investors, including Ankur Capital.
According to the Food and Agriculture Organization of the United Nations, extreme weather events cost the global agriculture sector between $10 billion and $15 billion annually.
IBISA’s parametric insurance products use satellite and actuarial technologies to provide financial resilience in regions vulnerable to these impacts. The company has focused on India since establishing a local presence there in 2023.
The insurtech firm offers a range of climate-related insurance products, including agricultural insurance, typhoon coverage, and loan protection for financial institutions. One notable product is heat stress insurance for dairy farmers in India, which is now being extended to Bangladesh.
IBISA CEO Maria Mateo (pictured, right) said the new funding will support the development of additional products and further expansion into emerging markets.
“Since the beginning at IBISA, we have functioned with great agility as product innovators and bringing these products to market efficiently. This is what drives us. This is our DNA. Now, we are entering the industrialisation phase of our journey. With the backing of this fundraising effort and the support of both existing and new investors, our goal is to amplify our product offerings, expand within our current markets, and explore new markets,” she said.
ARAF and Equator led funding round
ARAF is a $58 million impact fund dedicated to building the climate resilience of smallholder farmers. Sponsored by Acumen and supported by various partners, it targets equity investments in agricultural enterprises that support climate adaptation.
“We’re honoured to co-lead this investment round in IBISA with Equator and excited to partner with a world-class entrepreneur like Maria,” said ARAF managing director Tamer El-Raghy. “African farmers are among the most negatively impacted by climate change, and the need for low-cost parametric insurance products is a must-to-have for those farmers to be able to absorb a climate shock, and IBISA’s cutting-edge technology helps developing low-cost insurance products for those farmers. This investment is an invaluable addition to ARAF’s portfolio, and we look forward to supporting IBISA’s regional growth.”
Equator, which co-led the funding round, is a venture capital firm with operations in Nairobi, Lagos, London, and Colorado. It invests in technology-enabled, early-stage ventures in energy, agriculture, and mobility sectors in Sub-Saharan Africa.
“Investing in IBISA aligns with our strategy to back innovative ventures providing critical climate adaptation products and services. IBISA’s technology and business model specifically enable it to scale access to a broad range of affordable parametric insurance products across emerging markets,” said Equator managing partner Nijhad Jamal.
Aside from natural disasters, a significant space storm – which has a capacity to disrupt radio communications, power grids, spacecraft, and satellite navigation – is threatening the insurance industry as it could result in greater losses than catastrophic events, according to a recent report.
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