Climate and Clean Tech | August 9, 2022

Raincoat scores $4.5 million to scale disaster insurance in the Caribbean and Latam

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, August 9 — More than 150 million people in Latin America and the Caribbean have been impacted by hurricanes, earthquakes, floods and other disasters since the turn of the century.

San Juan-based Raincoat, launched in 2019, helps financial institutions, governments, insurers and reinsurers automate payouts to their clients. Most of Raincoat’s clients in Jamaica, Colombia and Mexico serve the agricultural sector. The company is expanding to the Dominican Republic and Chile.

Anthemis led the round with SoftBank Group’s Opportunity Fund. Divergent Capital, 305 Ventures, Consorcio and Banco Popular de Puerto Rico also participated.

Climate adaptation

Raincoat helps companies offer “parametric” disaster insurance, which provides payments to policyholders based on the magnitude or the disaster rather than the losses. Such automatic responses enable faster payouts than other insurance policies.

Fully-automated insurance holds the key to insuring the most vulnerable against climate disasters, says Raincoat’s Jonathan Gonzales, adding “The obstacles to fully implement these programs at scale are incredibly complex.”