HSCM Ventures backs Parsyl, the sensor-driven parametrics insurtech

HSCM Ventures, the insurtech focused venture capital investing arm of reinsurance and transport focused asset manager Hudson Structured Capital Management, has led a $25 million Series B round for sensor-driven parametrics coverholder Parsyl.

Parsyl’s core tech-focused products are particularly interesting as they offer a glimpse of the future for risk and insurance, featuring the use of sensors as data sources for parametric insurance, with responsive coverage that can be integrated within supply-chains, control systems and other critical infrastructure.

When it comes to responsiveness, you might recall that Parsyl made a pay-out under a temperature linked parametric insurance policy in less than 8 hours last year.

Since then, Parsyl has been expanding steadily and as well as being a coverholder the company now has Syndicate 1796, which it calls the first mission-driven Syndicate at Lloyd’s and has launched products related to its connected-insurance approach (sensor-driven), as well as a facility to insure the storage and distribution of Covid-19 vaccines, plus a range of more traditional insurance offerings which largely focus on supply-chain related areas of risk.

Parsyl has now secured a $25 million Series B round of funding, with which it aims to expand its data-driven insurance mission.

HSCM Ventures led the round, which also included strategic investors: Lineage Ventures, the technology investment arm of Lineage Logistics; Flexport Ventures; executives from the insurance and perishable food industries; and existing investors GLP Capital Partners; and Luna, the investment fund of Lucy Ana Walton.

Alongside the funding announcement, Parsyl has also launched a US-based Managing General Underwriter (MGU) and is expanding the scope of its impact-focused syndicate at Lloyd’s of London, Syndicate 1796.

“Parsyl acts at the intersection of insurance, technology, and social impact,” Adrian Jones, Partner at HSCM Ventures and now on Parsyl’s Board of Directors explained. “Parsyl’s risk management and insurance solutions help ensure that cold chains are maintained for vaccines, that perishable food arrives unspoiled by temperature, and that financial protection is in place in case of damage.”

“People everywhere depend on cold chains to deliver the food we eat and the medicine we need. But too often, a lack of data leads to unnecessary waste, devastating financial loss and restrictive insurance,” added Ben Hubbard, co-founder and CEO of Parsyl. “We use ground-truth data to strengthen supply chain risk management and provide tailored insurance protection at a time when the global supply chain is in crisis and effective vaccine distribution is increasingly urgent.”

This is the second investment announcement in quick succession where Hudson Structured has participated, after we reported the investment manager provided Series A investment capital and facilitated a $250 million lending commitment for “buy now, pay later” focused insurtech Ascend.