IBISA has raised a seed round of 1.5 million. The round was led by Insurtech Gateway, with participation from other investors.
Microinsurance is a type of insurance that protects low-income people against certain risks. These are small farmers whose livelihoods might be affected by adverse climate events, which are unfortunately on the rise.
The startup is based in Luxembourg and focuses on emerging markets. The site explains that they work with insurers, mutuals, and others.
The company has worked with partners in the Philippines, India, and Niger. It plans to use its funding to hire and expand in new markets.
Farmers might be relieved to get compensated when their crops are damaged. According to IBISA, most of them don't have agricultural insurance. On the one hand, options might be too expensive, and on the other, the paperwork to claim aPayout might be too daunting.
IBISA uses a collective index to calculate its payouts and they are meant to be quick and hassle-free. That is index-based insurance, also known as parametric insurance, since payouts are triggered by certain parameters.
Stephen Brittain said that this approach helps reduce operating costs on the insurer's side.
Microinsurance was not commercially viable due to a number of reasons, such as low premiums, expensive claims handling, and a lack of trust.
What has changed? Again, technology.
Trust in an index is supported by data. Mara Mateo Iborra, the co-founder and CEO of the startup, worked in the satellite industry for several years. It relies on data from local watchers.
IBISA sees a way to keep costs low by using a block chain. The European Union has a project called Block. IS that is focused on the use of space assets.
The company presented at a demo day. At the time of joining the program last September, Jean-Baptiste Pleynet made mention of IBISA's insurance, satellite, and blockchain components, as well as its potential to drive positive impact.
Pleynet emphasized that the solution will be very valuable for the food industry to bring resilience to the supply chain and manage climate risks.
