Descartes Underwriting, a parametric insurer based in Paris, has received a strategic investment from Battery Ventures, a firm known for its focus on technology. The financial details of this investment were not shared publicly.
This deal allows Battery Ventures to become a shareholder in Descartes, while existing investors keep the majority of their stakes. Marcus Ryu, a partner at Battery Ventures and the former CEO of Guidewire Software, will join Descartes as an observer. Guidewire is a significant player in the insurance industry, valued at around $20 billion.
Tanguy Touffut, CEO and co-founder of Descartes, expressed pride in the company’s growth over the past six years. He highlighted Descartes’ position as a leader in parametric insurance for climate-related risks and emphasized the importance of the investment as a sign of confidence in their mission, particularly in North America, which is their largest market.
Ryu shared his enthusiasm for applying technology to address the underinsurance gap in the industry. He believes that parametric insurance is a promising method for efficiently transferring risk and expects its importance to continue growing.
Descartes operates in over 60 countries with 19 offices on four continents and employs around 230 professionals. The company reported generating more than $200 million in gross written premium in 2024. Descartes provides a range of insurance products, including transparent parametric solutions with quick claims payouts. So far, they have offered over $10 billion in insurance capacity through corporate brokers.
With this new investment, Descartes aims to strengthen its position in the market and continue its mission of providing effective insurance solutions for climate and emerging risks.