EXCLUSIVE: Adaptive Insurance partners with TMHCC to launch short-term power outage parametric product in 18 states

(The Insurer) - Climate-focused parametric startup Adaptive Insurance has partnered with Tokio Marine HCC (TMHCC) to bring its short-term power outage insurance product to market in 18 U.S. states.

GridProtect, Adaptive's flagship parametric product, aims to provide immediate financial relief for businesses affected by weather-related power outages.

It is initially available in Alabama, Arizona, Colorado, Florida, Georgia, Illinois, Indiana, Kansas, Maryland, Minnesota, Missouri, New Jersey, Nevada, New York, Pennsylvania, Texas, Utah and Wisconsin.

Collectively, this coverage area includes approximately 2.36 million SMEs and represents 53% of all commercial businesses in the U.S. Power outages in the country cost businesses over $150 billion annually, according to Adaptive.

The company said that it plans to expand both geographically and across additional parametric product lines by its second year, aiming to serve nearly 80% of U.S. SMEs.

“Power outages are a growing and costly threat to businesses across the U.S.,” said Chris Skarinka, president of Tokio Marine HCC's public risk group, parametric and innovation group.

“We’re excited to partner with Adaptive, reflecting our continued commitment to expanding the use of parametric solutions in response to climate related risk,” Skarinka added.

Speaking to The Insurer in April, Mike Gulla, founder and CEO of Adaptive Insurance said that the growing demand for electricity, driven by artificial intelligence, data storage and population shifts, is putting new pressure on the already aging U.S. power grid.