ChAI Obtains Seed Round Funding To Develop Into AI Insurance Services
ChAI Obtains Seed Round Funding To Develop Into AI Insurance Services
Commodities AI Ltd (ChAI), an AI-driven commodity intelligence company, recently closed a seed round to support the expansion of its market-leading services into new geographies and deliver real-time commodity price forecasts to new international audiences, including raw material companies and significant supply chain providers.
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The investment announcement represents a critical turning point in ChAI’s product development as well as its capacity to offer crucial information to a variety of stakeholders at a time when the commodity markets are still characterized by high volatility.
Long-term forecasting is needed by supply chain providers in the current market environment to solve issues with global food security.
ChAI uses purpose-built AI technology to analyze thousands of data sets to identify what variables are driving market prices.
ChAI Obtains Seed Round Funding To Develop Into AI Insurance Services
At the same time, through the use of AI technology, the company is able to predict raw material costs, highlight risk exposure and help its clients purchase the necessary commodity products effectively.
Moreover, ChAI is currently on a mission to enable organizations to capture more margin, optimize hedging and reduce exposure across the commodities market. The company was launched in 2019 by its co-founders with a parametric insurance product in mind that would protect clients from drastic changes in commodity prices.
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The AI-driven company’s market intelligence tool has the technical capabilities to price insurance premiums and simulates underwriting portfolios. However, now this latest funding round will allow them to invest in building commodity risk insurance products to allow smaller companies that are underserved by existing risk transfer solutions, such as options or futures markets, to transfer commodity price risks and derivatives.
Additionally, the funding will also allow larger companies and material providers to transfer financial risk for many raw materials such as plastic and steel.
ChAI Obtains Seed Round Funding To Develop Into AI Insurance Services
ChAI is democratizing the tools, techniques, and data that have long given speculators a competitive edge – combining state-of-the-art AI techniques with exciting new alternative data sources to take the risk out of physical supply chains.
The company’s innovation helps better mitigate shocks to company cash flows and P&Ls, therefore enabling businesses to plan better for the future and be more resilient.
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Last month the company announced a significant data-licensing agreement with S&P Global Commodity Insight, which enables ChAI to provide real-time commodity price forecasts based on Platts price assessments to new customers, supply-chain providers, and investors.
Richard Chattock, CEO at Insurtech Gateway, said: “Welcome to Insurtech Gateway ChAI. Industrial supply chains face increasing price volatility in commodities with the majority unable to access hedging tools. ChAI solves this problem through a smart price protection solution backed by insurance.
ChAI Obtains Seed Round Funding To Develop Into AI Insurance Services
We are delighted to help you prove out and scale this model. We were really impressed by ChAI’s deep data insights into market and pricing dynamics.”
Andre Ronsoehr, Investment Director at Seraphim Space, added: “Chai is already empowering businesses across some of the largest and most important industries globally by allowing them to better manage their commodity price exposure.
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Now, ChAI’s upcoming insurance product has the potential to become an absolute game changer for these businesses. We are very happy to support the founders and team at ChAI and look forward to an exciting journey.”
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