Adaptive Insurance Launches AI-Powered Platform For Climate Risks

As climate change intensifies, businesses across the U.S. are grappling with unprecedented risks, particularly power outages, that collectively drain $150 billion from the economy each year. Adaptive Insurance, a new parametric insurance platform, launched today with a mission to change how businesses safeguard against climate risks. The company’s flagship insurance product, GridProtect, will offer immediate, technology-driven financial relief from the impacts of power grid disruptions.

Every month, 15 million businesses in the U.S. suffer from power outages, often with catastrophic financial consequences. According to the Electric Power Research Institute (EPRI), the average cost of a power outage can range from $2,108 for a 3-minute outage to over $8,000 for a one-hour outage. Studies also show that every $1 spent on resiliency results in $13 saved in cleanup and economic costs—dollars that are better reinvested into growing a business, supporting its employees, and building deeper connections with the community.

Traditional insurance has left businesses vulnerable, with coverage gaps that expose them to severe losses. GridProtect changes that. Leveraging advanced AI and climate data, Adaptive Insurance provides businesses with parametric coverage for short-duration outages, eliminating the typical 24-hour period before coverage kicks in that is found in conventional policies.

"We’ve seen it all across the U.S. – climate change is accelerating faster than the insurance industry can adapt, and businesses are paying the price," said Mike Gulla, CEO and Co-Founder of Adaptive Insurance. "We designed GridProtect to fill a critical void in the market. With our AI-powered platform, businesses can now insulate themselves from the financial shock of power outages the moment they occur—less waiting, less uncertainty. We are not just offering insurance; we are offering resilience, enabling businesses to weather the storms—literally and figuratively—that threaten their survival."

Power grid failures have become increasingly frequent: 80% of the 1,755 major power outages in the U.S. since 2000 have been weather-related. According to FEMA, businesses that close for just five days due to such events have a 90% chance of never reopening. Adaptive Insurance’s GridProtect helps businesses quickly get back on their feet with immediate capital that they can decide how to use, helping them navigate the short and long-term impacts of a power outage.

Adaptive Insurance is one of the first companies to emerge from Montauk Climate, an incubator focused on climate tech.

“Climate and weather events cause $1 billion in damage every three weeks in the U.S.,” said Philip Krim, Founder and Partner at Montauk Climate. “We launched Adaptive to address this immense and growing problem with a novel approach that is both effective and scalable. Adaptive’s co-founders, Mike Gulla and Arik Yelovitch have the vision and expertise needed to steer this innovative company, making them the ideal leaders for this mission.”

For more information about Adaptive Insurance and its parametric insurance platform, please visit www.adaptiveinsurance.com.

About Adaptive Insurance

Adaptive Insurance’s parametric insurance platform helps U.S. businesses build economic resilience against climate-related events and addresses the growing demand for policies that can cover gaps left by traditional insurance. Starting with its power outage coverage, GridProtect, Adaptive uses the simplicity of parametric insurance - verified trigger events and agreed-upon payment amounts - to help create a financial safety net against unpredictable weather events that impact businesses. Power outages cost American businesses over $150 billion annually. As the effects of climate change continue to rise, so too does the strain on resources to protect or rebuild, contributing to increasing insurance costs and decreasing coverage. With Adaptive’s parametric solutions, we can help businesses get back on their feet and gain the upper hand on Mother Nature. For more information, visit www.adaptiveinsurance.com.

About Montauk Climate

Montauk Climate is an incubator dedicated to creating technology companies that are at the forefront of climate, infrastructure, and energy transitions. Co-founded by industry veterans with deep expertise in finance, energy, and technology, Montauk Climate is bringing world-class operators and established builders to architect the next wave of technology companies that are building a sustainable, electrified, and digitized future. Montauk Climate leverages its vast network of advisors and industry insiders to boost idea generation, deal execution, and talent sourcing. For more information, visit https://montaukclimate.com/.