The annual cost of major US power outages averaged $67 billion between 2018 and 2024, reaching $121 billion in 2024, according to the Department of Energy's Oak Ridge National Laboratory. Most of that cost is uninsured - not because power outage risk is uninsurable in principle, but because standard commercial property and business interruption policies are structurally designed to exclude it. Standard BI cover typically requires physical damage to the insured property as a precondition for a business interruption claim, and most policies apply a waiting period before cover triggers. A short-duration power outage - the category that generates the most frequent and economically significant losses - produces no physical damage and resolves before a waiting period expires, leaving the financial loss entirely outside the policy.
Adaptive Insurance launched GridProtect in 2025 to address that specific exclusion. The Austin, Texas-based MGA describes it as the first dedicated parametric product for the power outage segment. Unlike indemnity coverage, parametric insurance pays out automatically when a defined trigger event is verified - in GridProtect's case, verified real-time outage data - without requiring a claims adjustment process or evidence of physical damage. The payout mechanism removes the two structural features of standard BI that create the gap: the physical damage requirement and the adjustment process that delays recovery.
Adaptive has closed an additional $5 million in financing to bring total funding to $10 million. New investors include IAG Firemark Ventures, Sunna Ventures, Room & Pillar and Connecticut Innovations, alongside existing backers Congruent Ventures and Seraphim Space.
The IAG Firemark participation is the most analytically significant investor detail. IAG Firemark is the venture capital arm of Insurance Australia Group, one of Asia-Pacific's largest general insurers. An incumbent carrier's venture arm investing in a US parametric power outage MGA signals that IAG views the coverage gap as commercially relevant beyond the US market - and that parametric product design for infrastructure outage risk is a problem the broader insurance industry has not solved through conventional means.
Alex Guyer of IAG Firemark said the round reflected the view that "consumers and businesses increasingly need insurance solutions that can adapt to risks that are evolving faster than traditional products were designed to address."
Climate and weather events generated a $181 billion global protection gap in 2024, according to Swiss Re data, of which power outage losses represent one of the largest and most consistently underinsured categories. Adaptive operates across multiple climate coverage gap products - including flood, wind and hail deductible buy-back and commercial equipment breakdown - with GridProtect as its most recent addition targeting what the Department of Energy data identifies as the largest single short-duration infrastructure loss category.
Mike Gulla, CEO and co-founder of Adaptive Insurance, said the company plans to develop additional products targeting climate-related coverage gaps and expand its climate intelligence platform. The $5 million raise follows a period of product expansion that Adaptive said has grown its agent and partner distribution network.
