Adaptive Insurance, a specialty managing general agent focused on climate resilience, closed a $5 million funding round that brings its total capital to $10 million. The insurtech will use the money to scale AI-driven products designed to fill coverage gaps left by traditional policies as severe weather and infrastructure failures become more frequent.
Funding details and investor lineup
New investors in the round include IAG Firemark Ventures, Sunna Ventures, Room & Pillar and Connecticut Innovations. They join existing backers Congruent Ventures, Seraphim Space and private stakeholders. The fresh capital will support expansion of Adaptive's specialty product portfolio, growth of its agent and partner distribution network, and further development of its proprietary climate intelligence platform.
Parametric products and platform expansion
The company's flagship product, GridProtect, launched in 2025 as what it describes as the first parametric insurance for short-duration power outages. The cover triggers predefined payouts based on verified outages using real-time third-party data, removing the need for a physical claims adjustment. It targets underinsured disruptions from grid failures that last less than 24 hours.
Since then, Adaptive has added a wind and hail deductible buy-back solution that reduces out-of-pocket exposure for residential and commercial clients, a residential flood product offering broader coverage and higher limits than standard NFIP policies, and commercial equipment breakdown coverage. The company also powers Tokio Marine HCC's Restaurant Recovery program through its technology platform, embedding its climate intelligence and parametric triggers into carrier-backed programs. The platform's use of AI to drive parametric payouts reflects an area where insurance professionals can deepen their expertise through AI for Insurance Courses.
Market context and leadership perspective
Adaptive points to a growing protection gap. Climate and weather events generated an estimated $181 billion global protection gap in 2024. Catastrophic climate events caused $115 billion in direct losses in 2025, and FEMA canceled $600 million in Flood Mitigation Assistance grants across 36 states. CEO and co-founder Mike Gulla said businesses and homeowners face overlapping coverage, product and infrastructure gaps.
"Businesses and homeowners today face risks from multiple directions at once. We're seeing coverage gaps where standard policies fall short. Product gaps where entirely new risks have outpaced what traditional insurance was built to address. And infrastructure gaps created by climate volatility, shifting populations, and shrinking public resources. Specialty insurance products have a critical role to play because they allow customers to build resilience, recover faster, and maintain continuity against increasingly unpredictable disruptions. This funding allows us to continue expanding development and distribution of our suite of products and the technology that supports them."
Congruent Ventures partner Kevin Kopczynski said, "What has impressed us most is Adaptive's ability to move from identifying a market need to launching products that deliver tangible value for customers. The team has demonstrated strong execution, deep insurance expertise and a clear understanding of how climate and infrastructure risks are reshaping protection needs. We are excited to deepen our support as Adaptive enters its next phase of growth."
Why this matters for insurance professionals
As standard carriers pull back from high-risk regions and public backstops shrink, specialty MGAs like Adaptive are stepping in with parametric and data-driven products. For underwriters, brokers and claims professionals, this shift demands familiarity with real-time data triggers, AI-based risk assessment and new product structures that bypass traditional loss adjustment. The ability to evaluate and distribute these instruments will become a competitive differentiator as climate volatility increases demand for coverage that responds faster and with fewer conditions.
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