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Conversation
Highlights

 

Welcome to another episode of Category Visionaries — the show that explores GTM stories from tech’s most innovative B2B founders. In today’s episode, we’re speaking with Alisa Valderrama, co-founder and CEO of Future Proof, a climate-focused insurtech startup that has raised nearly $10 million in funding.

Here are the most interesting points from our conversation:

  • Environmental Roots: Alisa’s path to founding Future Proof was deeply influenced by her early experiences with pollution in San Diego, sparking her lifelong interest in environmental protection and her pursuit of solutions to the financial externality of pollution.
  • Bridging Finance and Environmentalism: Alisa’s career trajectory, including her studies in securities law and corporate governance, was driven by her quest to translate environmental costs into financial terms, especially concerning climate risk.
  • From Legal Efforts to Insurtech: Despite her legal background, Alisa realized the limitations of addressing climate risk through law alone. This realization led her to explore the insurance industry as a more direct means of quantifying and managing climate risk.
  • Innovative Risk Modeling: Future Proof utilizes AI-driven projections of losses from hurricane wind and flood to power its underwriting and pricing, offering a unique, predictive view of climate-related risk not seen in traditional models.
  • The Path to Future Proof: The transition from an analytics platform to an MGA (Managing General Agency) was pivotal, allowing Future Proof to directly impact the insurance industry by offering algorithmically underwritten, price-differentiated quotes to brokers.
  • Expanding the Scope of Insurtech: Looking forward, Future Proof aims to innovate further by developing insurance products that incentivize investments in adaptation and resilience, potentially redefining how the industry addresses climate risk.

 

Actionable
Takeaways

Leverage Personal Passions to Identify Business Opportunities:

Alisa's journey from being an environmental enthusiast to founding Future Proof underscores the power of leveraging personal passions to identify and solve complex business problems. Entrepreneurs should explore their personal experiences and interests for insights into unaddressed market needs, especially in areas where they feel a deep connection.

Translate Complex Risks into Financial Terms:

Future Proof's approach to translating climate risk into financial risk highlights the importance of making complex problems understandable and manageable through financial metrics. Founders in sectors impacted by broad, systemic issues like climate change can look for innovative ways to quantify risks and benefits in financial terms to drive investment and action.

Adopt a Multidisciplinary Approach to Problem Solving:

Alisa's background in environmentalism, law, and finance exemplifies the benefits of a multidisciplinary approach to entrepreneurship. Tackling today's most challenging problems often requires insights from multiple fields. Founders should consider building diverse teams and seeking knowledge outside their primary area of expertise to create more comprehensive and innovative solutions.

Utilize Advanced Technologies for Competitive Advantage:

Future Proof's use of AI-driven projections for underwriting and pricing demonstrates how advanced technologies can provide a competitive edge, especially in traditional industries like insurance. Startups should explore how emerging technologies such as AI and machine learning can be applied to their industries to disrupt established practices and offer better solutions.

Pivot Towards Market Needs for Greater Impact:

The evolution of Future Proof from a climate risk analytics firm to an MGA highlights the importance of being flexible and responsive to market needs. Entrepreneurs should remain open to pivoting their business models based on feedback, market research, and the realization of where their solution can have the greatest impact. This flexibility can lead to discovering more viable and scalable business opportunities.

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