Parsyl forms MGU, bolsters Lloyd’s Syndicate after HSCM-led $25m investment

HSCM Ventures, the venture capital arm of Hudson Structured Capital Management, has led a $25 million Series B financing in  Parsyl, an insurer that specialises in using technology to create better solutions for supply chains, in particular for perishable food and pharmaceuticals.

Simultaneous with the funding, Parsyl will launch a US-based managing general underwriter (MGU) and expand the scope of its syndicate at Lloyd’s of London, Syndicate 1796.

Parsyl is an approved Coverholder at Lloyd’s of London and owns Syndicate 1796, which also anchors its Global Health Risk Facility, which insures the storage and distribution of Covid-19 vaccines and other health products to developing countries. It will use the funding to expand its cargo insurance and risk management solutions.

Parsyl uses data to help customers manage, mitigate, and insure complex supply chain risks. It collects supply chain data from sensing devices and other sources to create innovative insurance solutions. One of its products, itself part of its ColdCover suite of products, represents the industry’s first parametric temperature solution. Cargo claims can be paid in as little as two days using data from its sensors without requiring a loss survey.

It is targeting the $4 trillion of perishable food and pharmaceuticals shipped annually. It is using supply chain data to identify and manage risk and reduce waste of essential goods. It works with several of the world's largest logistics companies and insures food, vaccines and other health commodities that are shipped to more than 80 countries.

Other participants in the funding round included: Lineage Ventures, the technology investment arm of Lineage Logistics; Flexport Ventures; several executives from the insurance and perishable food industries; existing investor GLP Capital Partners; and Luna, the investment fund of Lucy Ana Walton.

“Parsyl acts at the intersection of insurance, technology, and social impact,” said Adrian Jones, partner at HSCM Ventures, who joins Parsyl’s board of directors. “Parsyl’s risk management and insurance solutions help ensure that cold chains are maintained for vaccines, that perishable food arrives unspoiled by temperature, and that financial protection is in place in case of damage.”

Ben Hubbard (pictured), co-founder and CEO of Parsyl, added: “People everywhere depend on cold chains to deliver the food we eat and the medicine we need. But too often, a lack of data leads to unnecessary waste, devastating financial loss and restrictive insurance. We use ground-truth data to strengthen supply chain risk management and provide tailored insurance protection at a time when the global supply chain is in crisis and effective vaccine distribution is increasingly urgent.”