Climate Finance | November 24, 2021

Kettle secures $25 million to provide wildfire reinsurance for Californians

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, November 24 — San Francisco-based Kettle is looking to fill a gap in the $400 billion-a-year reinsurance industry: accurately pinpointing and underwriting climate risk.

With seven billion rows of weather and satellite data and ‘deep learning,’ Kettle says it can predict wildfires and accurately price the cost of reinsuring businesses and homes in California.

By “understanding exactly where the risk is, we can bring stability back to the California insurance market,” Kettle’s Nathanial Manning said.

The company is also looking to create products to predict the patterns and risks of floods, wind and hurricanes.

Wildfire risk

More than three million acres burned during California’s recent wildfire season, after four million acres burned last year (see, “Wildfires bring to the fore financing for forest resilience).

Kettle said it was able to predict the location of last year’s 14 largest fires, which accounted for nearly all of the damage.