Raincoat secures $4.5 million to provide natural disaster insurance in LatAm

Oluwajuwonlo Afolabi -

Puerto Rico-based insurtech startup, Raincoat, has secured $4.5 million in its seed round funding led by Anthemis, to provide insurance for natural disasters in Latin America.

  • The B2B2C insurtech currently operates in Puerto Rico, Jamaica, Mexico, and Colombia, and aims to enter new geographies with its new fund.
  • Founded in 2017, Raincoat offers a parametric insurance model that allows the insured to get paid based on the magnitude of the event. It offers fast payment, unlike the traditional insurance model that depends on assessing damages before payment.
  • The startup's insurance solution provides end-to-end automated products to governments, financial institutions, and insurers to protect people affected by natural disasters such as hurricanes, earthquakes, or floods.
  • With this new round, Raincoat has raised $4.65 million in funding, with SoftBank Group's SB Opportunity Fund, Banco Popular de Puerto Rico, Consorcio based in Chile, Miami-based 305 Ventures, and Divergent Capital participating.