Parametric startup Adaptive Insurance launches with GridProtect power outage cover

A new parametric insurance startup has been launched named Adaptive Insurance with an initial product that protects against power outages, one of the first companies to emerge from climate tech incubator Montauk Climate.

Adaptive Insurance has launched as a tech-focused parametric insurance platform with a mission to deliver economic resilience for businesses, by helping them proactively defend against climate change related impacts.

Montauk Climate Corp is a New York-based incubator of climate-focused startups.

Adaptive’s initial power outage focused GridProtect parametric insurance product is designed to fill gaps in traditional insurance coverage, offering a fast-paying source of responsive risk capital to deliver financing when businesses are affected by power grid issues.

It offers “immediate, technology-driven financial relief from the impacts of power grid disruptions,” the company explained, highlighting that 15 million businesses in the U.S. suffer from power outages each year.

GridProtect utilises advanced artificial intelligence (AI) and climate data to provide parametric insurance coverage for short-duration outages, which the company says eliminates a typical 24-hour wait period before conventional insurance coverage kicks.

“We’ve seen it all across the U.S. – climate change is accelerating faster than the insurance industry can adapt, and businesses are paying the price,” explained Mike Gulla, CEO and Co-Founder of Adaptive Insurance. “We designed GridProtect to fill a critical void in the market. With our AI-powered platform, businesses can now insulate themselves from the financial shock of power outages the moment they occur—less waiting, less uncertainty. We are not just offering insurance; we are offering resilience, enabling businesses to weather the storms—literally and figuratively—that threaten their survival.”

“Climate and weather events cause $1 billion in damage every three weeks in the U.S.,” added Philip Krim, Founder and Partner at Montauk Climate. “We launched Adaptive to address this immense and growing problem with a novel approach that is both effective and scalable. Adaptive’s co-founders, Mike Gulla and Arik Yelovitch have the vision and expertise needed to steer this innovative company, making them the ideal leaders for this mission.”

Adaptive Insurance has has an experienced team that hails from industry players such as Hippo Insurance, Delos, esurance (part of Allstate), Nationwide and Verisk, the company said.

In addition, it counts some impressive names among its advisors: Angela Grant, Chief Legal Officer at Palomar Holdings; Holly Tachovsky a Founding Partner at Sabine River Ventures and the Founder of Buildfax (which was acquired by Verisk); Joan Lamm-Tennant, the Director and Chair of Risk and Underwriting Committee at Africa Specialty Risk and the Founder of Blue Marble Parametric; Rick McCathron, the President and CEO of Hippo Insurance; Michael Tannenbaum, the CEO of Figure; and Mike Brown, the COO of Newfront Insurance.

It’s good to see another parametric startup with a technology-first approach to pricing, underwriting and constructing parametric triggers, with a launch product that seeks to close an evident gap in business insurance coverage.