Adaptive Insurance Closes Additional $5M Financing to Expand Specialty Insurance Products Addressing Emerging Risks

Adaptive Insurance, the climate resilience company building AI-driven specialty insurance and technology solutions, announced the close of an additional $5 million in financing from new and existing investors. The financing will accelerate the development and distribution of products designed to address the growing risks related to climate and weather events.

The funding includes participation from new investors IAG Firemark Ventures, Sunna Ventures, Room & Pillar, and Connecticut Innovations, alongside existing backers Congruent Ventures, Seraphim Space, and private stakeholders. The round brings Adaptive's total funding to $10 million and reflects the excitement in Adaptive's approach to helping businesses and homeowners build resilience against gaps created by climate volatility, decreasing traditional coverage, and shrinking support from governmental agencies and programs.

Funding Will Build on Momentum to Accelerate Growth

The investment will support Adaptive’s momentum to expand its specialty product portfolio, grow its agent and partner distribution network, and continue development of its proprietary climate intelligence platform. Funding comes as the scale of climate-related disruptions becomes impossible to ignore: Climate and weather events generated a $181 billion global protection gap in 2024 (Swiss Re, 2024), catastrophic climate events caused $115 billion in direct losses in 2025 (Climate Central, 2026), and FEMA cancelled $600M in Flood Mitigation Assistance grants across 36 states last year (Urban Institute/FEMA).

“Businesses and homeowners today face risks from multiple directions at once,” said Mike Gulla, CEO and Co-Founder of Adaptive Insurance. “We’re seeing coverage gaps where standard policies fall short. Product gaps where entirely new risks have outpaced what traditional insurance was built to address. And infrastructure gaps created by climate volatility, shifting populations, and shrinking public resources. Specialty insurance products have a critical role to play because they allow customers to build resilience, recover faster, and maintain continuity against increasingly unpredictable disruptions. This funding allows us to continue expanding development and distribution of our suite of products and the technology that supports them.”

Building the Next Generation of Specialty Insurance

Adaptive launched GridProtect in 2025, the first-of-its-kind parametric insurance for short-duration power outages that triggers predefined payouts based on verified outages using real-time third-party data. The company has since expanded its product suite with a wind/hail deductible buy-back solution to help residential and commercial clients reduce out-of-pocket deductible exposure and a flood product that provides greater protection and flexibility than the NFIP policy. The company also offers equipment breakdown coverage to commercial clients and powers Tokio Marine HCC’s Restaurant Recovery through its proprietary tech platform. Future products will continue the focus on technology-driven specialty solutions that fill gaps and help build resilience against emerging climate risks.

"What has impressed us most is Adaptive's ability to move from identifying a market need to launching products that deliver tangible value for customers,” said Kevin Kopczynski, Congruent Ventures. “The team has demonstrated strong execution, deep insurance expertise and a clear understanding of how climate and infrastructure risks are reshaping protection needs. We are excited to deepen our support as Adaptive enters its next phase of growth."

This sentiment is echoed by new investors who see Adaptive’s approach as a response to a broader market shift. "Consumers and businesses increasingly need insurance solutions that can adapt to risks that are evolving faster than traditional products were designed to address,” said Alex Guyer, at IAG Firemark Ventures. “We believe Adaptive’s team is building the type of technology-enabled specialty insurance platform that will play an important role in the future of resilience and risk management."

With climate and weather risks evolving faster than conventional coverage can adapt, Adaptive Insurance sees a significant opportunity to bring new forms of coverage to the shifting reality that consumers now face.

Adaptive Insurance | adaptiveinsurance.com