Sola Brings Affordable Disaster Coverage in the Face of Climate Change
Within the TSQ Clubhouse resides Sola Insurance, a new and unique InsurTech company redefining how people recover from natural disasters. Co-founded by Wesley Pergament, whose personal experiences with Hurricane Sandy and professional work in flood insurance sparked a passion for improving the industry, Sola leverages data and technology to provide transparent, efficient disaster recovery solutions. “With Sola, I wanted to take an approach that reflects a shift in how insurance is perceived and a proactive response to the growing challenges of climate change and extreme weather events,” Pergament explains.
Large supercell thunderstorms like this one in Texas often produce multiple tornados, bringing heavy rain, hail, and flooding. Severe weather events can be directly attributed to climate change. However, the link between tornadoes and climate change is still not fully understood. (Image: NOAA)
The story of Sola Insurance began with the 2020 Easter tornado outbreak in Chattanooga, a catastrophic event that exposed glaring gaps in traditional insurance coverage. Recognizing the financial and emotional toll these disasters impose, Wesley and his co-founders embarked on a mission to build a more accessible and effective insurance model. Sola provides a natural disaster insurance policy that helps homeowners manage rising premiums and deductibles.
In addition to affordability and unlike conventional insurance providers, Sola uses data-driven insights from the National Weather Service (NWS), NOAA, and satellite imagery to trigger a payout for their policyholders automatically. Their innovative approach is backed by decades of weather data to provide the most reliable and affordable solution. This transparency reduces homeowners' costs and fosters trust—something the insurance industry desperately needs.
A Changing Climate
Natural disasters' increasing frequency and severity underscore the urgency for innovative solutions like Sola's. According to multiple scientific reports, climate change and increased phenomena like El Niño amplify extreme weather events, from hurricanes and floods to wildfires. The data reveals a troubling trend: higher temperatures fuel more intense storms while shifting weather patterns increase the unpredictability of these events.
For homeowners, this means a growing need for reliable disaster coverage. Yet traditional insurance often falls short, with slower claims processes and higher premiums, leaving many vulnerable. “With Sola, we aim to address these pain points by offering a more affordable policy designed to expedite recovery. For example, once the NWS verifies a tornado in the area, Sola proactively and automatically contacts homeowners within hours, enabling them to attest to damages and receive claim payouts quickly. This streamlined process helps people rebuild faster — both physically and financially,” says Pergament
Using their weather detection methods, Sola can determine if a weather event has impacted a property and automatically reaches out to customers within hours, eliminating the need to file a claim. (Image: Sola)
Technology, Transparency, and Resilience for the Future
One of Sola's most significant innovations is using data and technology to improve claim accuracy and affordability. The company creates a more predictable risk model for their reinsurance partners by analyzing weather events and incorporating roof assessments and satellite imagery. This approach also benefits homeowners and appeals to mortgage lenders, who recognize Sola’s policies as a viable supplement to traditional home insurance coverage with higher deductibles.
Sola’s efforts have already made a tangible impact. Sola already insures thousands of homeowners across the Midwest and Southeast and is partnered with some of the world’s largest reinsurers out of Lloyd’s of London. In dozens of cases, homeowners have closed their mortgages thanks to Sola’s affordable policy. “This milestone reflects Sola’s financial inclusivity and is already changing the public’s perception around disaster insurance,” Pergament explains.
Sola’s success in eight Southern and Midwestern states is just the beginning. The company plans to expand its coverage area, add more disaster types to its offerings, and venture into commercial property insurance. By addressing the evolving needs of a climate-challenged world, Sola is well-positioned to lead the disaster insurance industry toward a more sustainable and customer-centric future. As natural disasters become increasingly common, the importance of resilient, reliable insurance solutions cannot be overstated.