Aussie insurtech secures backing from Chinese tech giant, Silicon Valley

Sydney-based Reask has closed its first round of capital raising with support from Chinese tech giant Tencent and other Silicon Valley investors, boosting the insurtech’s bid to become a key natural catastrophe modeller using artificial intelligence (AI).

Reask says the investment will support the next stage of its product development, operational expansion and business development worldwide, including the London market.

Chief Commercial Officer Nick Hassam told insuranceNEWS.com.au today the amount raised in the seed funding is confidential and that it represents a “significant” point in the company’s progress.

“This investment round is a significant event in the journey of Reask and validates the effort and energy we have poured into the organisation since our inception.

“Having one of the world’s largest organisations in Tencent, as well as the additional backing of Silicon Valley institutions SV Angel and Hawktail, shows both the potential of the opportunity we are addressing in climate risk, and the confidence our partners have in our ability to deliver.”

San Francisco-based SV Angel is an early investor in Google, Twitter, and Airbnb, and Hawktail is an early-stage US-based venture fund.

Reask has made inroads with its AI-driven catastrophe modelling solutions in the insurance industry, with Swiss Re and Axa among its clients. Last September Swiss Re Corporate Solutions said it will use a tropical cyclone risk modelling product developed by the insurtech.

Tencent Chief Exploration Officer David Wallerstein says AI is shaping up as a key tool in helping the world to more accurately predict future climate patterns and related risks.

“Reask has built a suite of products leveraging their climate forecasting engine for the insurance industry that are helping insurance companies accelerate the development of their climate-related offerings,” he said.

“The insurance industry will play an increasingly critical role in helping economies adjust and mitigate risks from climate-driven catastrophic events.

“We believe Reask is well positioned to partner and grow with the global insurance industry.”

Mr Hassam told insuranceNEWS.com.au for the year ahead, Reask is focused on growth and building its teams in Australia and London.

“More client announcements [will] follow in the coming weeks and months,” he said. “Later this year we will be introducing products that help facilitate the transfer of risk in regions and for perils that were previously unavailable without our technology.”