Adaptive Insurance, a company focused on climate resilience using AI and data to offer climate-based parametric insurance, has entered a partnership with Tokio Marine HCC (TMHCC), a specialty insurance group based in Houston, Texas, and part of the Tokio Marine Group.

With TMHCC’s financial backing and specialty insurance experience, Adaptive Insurance’s GridProtect—its short-term power outage insurance product—is now accessible in 18 states across the US.

GridProtect applies the principles of parametric insurance—predefined trigger events, set payouts, and rapid claims processing—to provide financial assistance to businesses affected by short power interruptions.

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

These states cover approximately 2.36 million small and medium-sized enterprises (SMEs) and represent 53% of all commercial businesses in the US, where power outages cost companies more than $150 billion annually.

Mike Gulla, CEO and Co-Founder of Adaptive Insurance, said the product’s expansion will rely on distribution partnerships, aiming to address a widespread challenge and share risk between customers and reinsurers.

He stated: “Partnering with a global specialty insurance provider of Tokio Marine HCC’s caliber, whose name and financial strength are among the best in the industry, not only validates the strength of our team, our product, and the underserved niche we’re serving, but also gives us the confidence to scale quickly while staying true to our customer-first approach.”

Adaptive Insurance plans to grow geographically and expand its parametric product offerings within two years, reaching coverage for nearly 80% of US SMEs.

Chris Skarinka, President of Tokio Marine HCC – Public Risk Group, Parametric & Innovation, noted: “Power outages are a growing and costly threat to businesses across the US. We’re excited to partner with Adaptive, reflecting our continued commitment to expanding the use of parametric solutions in response to climate related risk. We look forward to extending our support for insureds around the world and providing immediate financial relief at their time of need.”

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