Baobab Insurance Secures €12 Million to Shield Businesses from AI-Powered Cyberattacks
A Berlin-based insurtech, Baobab Insurance, has raised €12 million in a Series A funding round to enhance its offerings that protect businesses from cyberattacks fueled by generative AI technologies. The round was led by Viola Fintech and eCapital, with participation from existing investors including Augmentum Fintech, Project A Ventures, and Christof Marcher, former COO of Allianz Germany.
Since its launch three years ago, Baobab Insurance has raised a total of €20.1 million across multiple funding stages. With offices in Berlin and Cologne, the company delivers insurance solutions that cover cyberattacks, fraud, and software product failures. Its AI-native underwriting process has reportedly helped prevent losses exceeding €10 million for its clients.
AI-Native Underwriting and Monitoring
Baobab Insurance integrates AI directly into its underwriting and risk monitoring systems. This approach allows continuous real-time assessment of cyber risks, helping insurance brokers provide better protection against threats like phishing, CEO fraud, and ransomware.
Vincenz Klemm, co-founder and CEO of Baobab Insurance, highlighted how AI is intensifying cyber threats for European companies. He stated that their AI-native underwriting combined with active and free risk management tools equips brokers with effective solutions to safeguard businesses from dynamic cyber risks.
Plans for Growth and Market Expansion
The newly secured capital will be used to expand Baobab’s team, which currently numbers 30, and to strengthen its presence in Germany and Austria. The company also aims to broaden its product range and enter additional European Union markets over the next year.
- Funding led by Viola Fintech and eCapital
- AI-native underwriting preventing over €10 million in losses
- Plans to expand across Europe within 12 months
For insurance professionals, Baobab’s approach offers a glimpse into how AI can be integrated into underwriting and risk management to address emerging cyber threats effectively. Staying informed about such innovations can help insurance providers adapt their offerings and better serve clients facing AI-driven cyber risks.
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