Demex

Market position

Demex describes itself as a secondary-perils specialist and a market-maker for a risk class that surpasses catastrophe losses, offering what it calls the first modeled-loss reinsurance solution for non-catastrophic weather losses at a time when aggregate/frequency reinsurance capacity for severe convective storm has contracted. Its SCS Re product won InsurTech Product of the Year and The Insurer's Innovation in Parametrics award. It has been listed among the top 50 insurtech companies in the Americas by InsurTech Insights, in Oxbow Partners' 25 emerging technology-led businesses, and in HolonIQ's 200 most promising Climate Tech startups in North America.

Each contract is calibrated to the individual cedent's loss experience rather than to industry-wide catastrophe models, which the company argues exhibit high basis risk and low skill for high-frequency, low-severity perils. Other stated differentiators include free and transparent model construction, quarterly settlement with 45-day payouts, and engagement with AM Best and Demotech aimed at capital credit recognition, with expected treatment of approximately 90% — described as near the maximum achievable for parametric/modeled-loss products.

Technology

Machine-learning-driven predictive models of retained weather losses, calibrated to each carrier's own loss experience and combining weather, exposure and claims data. Outputs are gridded modeled-loss indices at roughly 32km resolution aggregated quarterly. The company cites a detailed atmospheric model focused on the United States and reports model predictions within approximately +/-5% of actual losses. Earlier descriptions reference cloud computing, big data and blockchain underpinning its pricing and risk-transfer platform, plus API integration for real-time property-level pricing.

Go-to-market

Demex distributes through reinsurance brokers and reinsurance companies, stating it partners with the world's largest reinsurance brokerages accounting for 90% of the market and that five of the top seven reinsurance brokerage firms support its product. Customer acquisition begins with a free, no-obligation model built from the prospect's submitted claims and exposure data.

Primary insurers with exposure to severe convective storm and winter storm losses, ranging from regional and mutual carriers to national carriers; reinsurance brokers seeking to supplement traditional weather reinsurance programs; and reinsurers looking to re-enter the secondary-peril market. For winter storm cover the company targets carriers in the Northeast, Ohio Valley, mid-Atlantic and parts of the South where extreme cold is infrequent. Earlier positioning targeted property owners, tenants and managers with operational weather exposure.

Geography

Headquartered in New York according to the company website, with earlier press releases datelined Washington. Its models and products focus on United States weather perils and U.S. primary insurers.

History

Demex spun out of Munich Re in 2020. It announced a $4.2 million seed round in 2020, a $9 million Series A in December 2021 led by Anthemis Group, Blue Bear Capital and QBE Ventures, a $5 million raise in 2023 to bring its Retained Climate Risk Reinsurance (RCR Re) secondary-peril product to market, and $10.25 million in September 2024 through a Series A and previously closed SAFE round led by Congruent Ventures. Ed Byrns was CEO and founder at the time of the 2021 raise; Bill Clark was president and CEO in 2024 and is listed as a former president and CEO on the advisory board, with Michael Anderson identified as chief executive officer on the current team page.