Stand Insurance expands AI use in risky markets

Stand Insurance has raised $35 million in a Series B funding round to expand its artificial intelligence-powered coverage for homeowners.

- BY COCO LIU AND SAIJEL KISHAN

THE PALISADES fire burned 23,400 acres, destroying some 6,800 structures, including many homes.

(GENARO MOLINA Los Angeles Times)

The company targets insurance markets deemed risky, with policies covering properties valued at a total of $1 billion in wildfire-prone California. The company says it will use the fresh funding to expand into Florida this year, another market with a huge protection gap because of its hurricane exposure.

Stand's latest fundraising round was led by Eclipse, a California-based investment firm that manages more than $5 billion in assets. The startup also counts Lowercarbon Capital and Inspired Capital among its backers.

Climate change is upending the global insurance industry by driving more extreme events. This year's Los Angeles wildfire alone caused an estimated $164 billion in losses, and insurance companies are increasingly pulling out of risk-prone areas.

San Francisco-based Stand uses remote sensing data and collects details from homeowners such as materials used for windows and the tree species in the backyard. The startup analyzes this information using artificial intelligence technology, which simulates how wind, heat, embers and other factors stand to contribute to possible damage.