Smart provides climate assure for out of doors recreation


Traditional travel insurance is a billion-dollar industry, but it often lets travelers down when the weather throws a wrench into their plans. Insurance startups are creeping into climate tech as investors eye a growing market for guarantees against unprecedented weather patterns.

Why it matters: Several startups aim to patch this leak to protect the growing number of travelers entering the highly weather-dependent world of outdoor recreational travel.

Driving the news: Sensible Weather recently announced a partnership with online campground booking company Tentrr.

  • Sensible offers something like a “fair weather guarantee,” automatically refunding travelers for items like ski lift tickets or campground reservation fees if the forecasting software indicates the weather will adversely affect their activity.
  • Tentrr users are prompted at checkout to add Sensible coverage to their booking.

Between the lines: Weather patterns have become increasingly unpredictable due to climate change, while at the same time domestic outdoor traffic has increased during the pandemic.

  • Think of Weather Guarantee coverage as the convergence of two years worth of consumer trends coming to a head.
  • Plover Parametrics demonstrated a similar insurance model at this week’s Y Combinator Demo Day. Plover identified a potential $95 billion annual recurring revenue market for weather-related insurance.

Our thought bubble: Homeowners’ insurance plans have begun to adapt to climate risks such as wildfires and floods by phasing out coverage entirely rather than expanding it, citing the financial impact on their business.

  • The Travel Guarantee could create a shadow insurance model that fills in the gaps where traditional plans fail.