NEW YORK, NY., January 8, 2024 — Lightsmith Group (“Lightsmith”), a global sustainable private equity firm focused on resilience to climate change, announced its investment in Parsyl (“Parsyl” or the “Company”), the leading AI-powered insurer of complex supply chains that makes global cargo more climate resilient through data-driven risk transfer solutions and risk reduction insights. Lightsmith led a $20 million Series C investment round, with participation from existing investors HSCM Ventures, GLP Capital Partners and Lineage Ventures.
Parsyl has experienced significant growth in the last 24 months through its focus on insuring underserved food, beverage and pharmaceutical commodities in the marine cargo space. The AI- and data-driven insurer, which evolved out of its core technology proposition, blends new data sources and modern technology with traditional underwriting expertise to help clients build more resilient and adaptable supply chains. As part of this investment, Lightsmith’s Jay Koh will join Parsyl’s Board of Directors and Serena Shi will serve as a board observer.
Climate change has increasingly impacted supply chains. With more frequent climate change-driven extreme weather events – like storms, floods, heat, and drought – the global shipping industry faces a growing risk of disruption and financial loss. In the 2022 Global Maritime Issues Monitor, the importance of enabling resilience across the marine industry was highlighted, with “failure to adapt to climate change” continuing to appear in the top 10 impacts to the marine industry over the next 10 years[1]. Perishable goods such as food, beverages, and pharmaceuticals are particularly susceptible to loss from these disruptions.
Parsyl has developed market-leading, AI- and data-driven underwriting expertise that enables it to offer advanced insurance products that protect and increase the resilience of global supply chains. Parsyl also shares supply chain risk insights with its clients and provides them with incentives to reduce their risk. Parsyl operates in the US and London insurance markets through a Managing General Underwriter (MGU) and its own managed syndicate at Lloyd’s of London, which it utilizes to lead one of the largest marine cargo consortia in the London market. Parsyl has more than 20 different providers of third-party capacity across its operations including delegated underwriting, consortia, reinsurance and Funds at Lloyd’s capacity providers.
“Climate risk is supply chain risk. Parsyl uses advanced technology – including AI and machine learning – to empower customers to manage supply chain risks made increasingly complex by climate change,” comments Jay Koh, Managing Director at the Lightsmith Group. “We are excited to partner with Ben Hubbard and the world-class team at Parsyl, as well as Parsyl’s existing investors. Parsyl has proven that technology can deliver the dynamic solutions that make supply chains more resilient. We look forward to working with Parsyl to scale its impact and its business as a key solution for meeting the supply chain challenges from climate change.”
“Our technologies and solutions enable clients to manage an increasingly complex risk environment. We are thrilled to have the support of The Lightsmith Group and our existing investors as we continue to grow and innovate,” said Ben Hubbard, Parsyl CEO and cofounder. “This funding further validates our vision and enables us to strengthen our team and our technology, while we expand our underwriting appetite, product offerings and geographies to impact more critical supply chains.”
[1] https://www.maritimeissues.org
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About Lightsmith Group
The Lightsmith Group is a sustainable private equity firm that invests in companies that address critical societal needs. Lightsmith invests in growth-stage companies providing technology-enabled business services and solutions in the areas of energy, water, food and agriculture, and climate resilience. For more information on The Lightsmith Group, please see: www.lightsmithgp.com.
About Parsyl
Parsyl is an insurer of complex supply chain risks that uses enhanced data and technology to better understand, price and mitigate risk. Parsyl offers its customers more tailored underwriting, a better claims experience and insights-based risk management that reduces waste and saves money. Parsyl leads the Essential Consortium at Lloyd’s of London, is a Lloyd’s Coverholder, and manages Syndicate 1796, the first mission-driven syndicate at Lloyd’s. Parsyl offers a full suite of A-rated cargo insurance solutions, including Cargo and Stock Throughput, Shipper’s Interest, Cargo Legal Liability and Warehouse Legal Liability. Parsyl is based in Denver, CO and London, England and can be found at www.parsyl.com.
