Stand Secures $35M Series B to Expand Resilience-Linked Property Insurance into Florida
Stand, a pioneering insurance company specializing in protecting catastrophe-exposed properties, has raised $35 million in a Series B funding round led by Eclipse with participation from Inspired Capital, Lowercarbon Capital, and Equal Ventures.
The company, established just over a year ago, utilizes a resilience-based underwriting model that integrates mitigation upgrades to reduce homeowner risk and insurance costs, initially focusing on wildfire-prone areas in California. Stand's underwriting approach employs physics-based models to evaluate structural resilience against extreme weather, originally for wildfires and now expanded to include wind-related exposures.
The recent funding infusion will enable Stand to accelerate its strategic expansion into Florida, a state characterized by high catastrophe risk and significant insurance market volatility. NOAA data indicates that Florida has experienced 94 separate billion-dollar disasters since 1980, resulting in substantial economic losses exceeding $1 trillion in recent major events. Florida’s insurer of last resort, Citizens Property Insurance Corporation, carries nearly $300 billion in exposure, underscoring the critical need for sustainable private market insurance solutions.
Since launching, Stand has insured approximately $1 billion in property value in California and intends to leverage its resilience-linked insurance model to encourage windstorm mitigation efforts in Florida. This aligns coverage terms with property hardening initiatives, aiming to enhance community resilience amid increasing natural hazard exposures.
Insurance industry stakeholders face ongoing challenges from escalating weather-related disasters causing widespread insured and uninsured losses. Stand's model represents an emerging approach that ties insurance underwriting directly to improved property resilience, potentially influencing market practices and risk management strategies in catastrophe-prone regions. This Series B investment reflects confidence in resilience-based insurance solutions as a pathway to address coverage gaps and financial vulnerability in high-risk markets.
Stand’s CEO highlighted the necessity of insurance systems that actively contribute to building resilient communities, particularly in states with substantial exposure to windstorms and other natural catastrophes. This expansion project aligns with broader industry trends emphasizing risk mitigation and sustainable exposure management as components of property insurance adaptation to evolving catastrophe risks.