Wildfires have been a natural threat forever. But the last few years have made it clear that climate change is making wildfires more prevalent and more unpredictable than ever. Insurance carriers have dealt with massive losses as their actuarial models have failed them. And they’ve subsequently pulled out of the market, no longer offering insurance policies covering wildfires. As a result, homeowners have no options for the financial protection of their properties. That’s why we invested in Kettle.
We’re thrilled to support Nat Manning and Andrew Engler as they work to balance risk in a changing climate. Kettle combines deep learning, used to understand and price risk, with reinsurance. The result is a financial product that uses modern technology to underwrite modern risks. And wildfires are just the start. Climate change has created insurance risk in a number of areas that each need to be navigated. Kettle recently announced its seed financing and expects to begin underwriting wildfire policies in early 2021. If you’re interested in the intersection of technology and climate change, check out their open positions.