CatX secures £2.15m to bridge the gap in reinsurance market

Top Silicon Valley venture capital firms and angel investors from leading proprietary trading firms and hedge funds led the funding round.

This funding marks a significant milestone for CatX as it continues its mission to address the growing shortage of reinsurance capital, which is critical for protecting insurers against major losses. The lack of reinsurance capital has led to substantial price increases, particularly for risks like natural catastrophes and cyber threats.

CatX aims to bridge this gap by providing institutional investors access to high-return investment opportunities in insurance risks. The platform features advanced risk models to generate actionable investment insights and digitises the workflow to streamline transactions.

“Our goal is to help make the insurance industry more robust and adaptable in the face of increasing global challenges,” said Benedict Altier, co-founder and CEO of CatX. “By channelling alternative capital into insurance, we’re not only helping to close the growing protection gap but also unlocking a promising new asset class for investors uncorrelated to traditional investments like stocks and bonds.”

CatX is already working with over 15 leading institutional investors, including North American pension funds, hedge funds, and structured credit funds, offering insurance companies the opportunity to access billions in capital through the platform.

“CatX offers a new model for the modern insurance market by opening access to investors outside of traditional reinsurance players and streamlining transactions with standardised paper and state-of-the-art insights,” said Sanford Lincoln from HackLegacy. This premier VC fund was invested in the round. “CatX will help greatly expand reinsurance transaction volume to create a more liquid risk market to reduce costs and expand coverage opportunities for consumers worldwide.”