Weather Analytics, a weather prediction and risk management software provider for the insurance industry saw their Series B financing round come to a close on Wednesday, March 15 with $17 million raised. The funds came from a pair of global insurers, Tokio Marine HCC and W. R. Berkley Corporation, bringing WA’s total funding to over $30 million. “This financing will accelerate scientific and technical innovation that vastly improve decision support in risk selection, pricing and policyholder services for insurance companies across the globe,” says company chairman and CEO, Bill Pardue.
WA was founded in Virginia in 2005, but an investment from the InvestMaryland fund in 2013 prompted a move to Silver Spring, MD. Weather Analytics currently operates out of Washington, DC, combining sophisticated predictive analysis software with a small mountain of weather data to help insurers make more accurate decisions while reducing costs. Mr. Pardue remarked, “Established providers are charging insurers too much and delivering too little. Weather Analytics is disrupting that equation.”
The main difference between WA and its competitors is the way they process their weather data. All the aggregate data in the world is useless if you can’t see how it affects your business. Weather Analytics focuses on problem-based data analysis, quality over quantity. “We find, assemble and format weather data so that you don’t have to. Our climate data is delivered in an easily accessible format that allows customers to focus their efforts on solving business problems versus aggregating and cleansing data from raw sources, which offer very limited value on their own.”
Tokio Marine HCC refers to a group of affiliated companies owned by HCC Insurance Holdings, Inc., in Delaware. The group led Weather Analytics Series A funding in 2015, which closed at $12.95 million. HCC’s CEO had this to say of the partnership with WA, “We are delighted to continue investing in technology that differentiates our capabilities and the products we offer to our customers. Weather Analytics leadership and innovation within the Big Data space will help push the insurance industry into the future.”
W.R. Berkley Corporation is a Greenwich, Connecticut based commercial liners property insurance provider who happens to be celebrating 50 years in business. When asked about the partnership with WA, W. Robert Berkley, Jr., President and CEO of W.R. Berkley said, “W. R. Berkley is proud to expand our relationship with Weather Analytics by becoming investors, as a client of Weather Analytics, we already are seeing concrete benefits by leveraging transformational technologies originally developed for the national intelligence and defense communities. From underwriting, to actuarial sciences, to claims – the potential for better decision-making and improved services to insureds[our clients] is tremendous.”
Ask any consumer or business owner with a vehicle, high insurance costs are in their top-ten list of concerns. Companies that can help lower those costs will have a far-reaching impact in the global marketplace. With Weather Analytics settled in their new home and new partnerships, the future looks bright. We’ll be keeping an eye on WA (and our insurance bills) and be sure to keep you posted on how things progress.