Arbol unveils new parametric system

Global climate risk coverage platform Arbol, in collaboration with The Institutes RiskStream Collaborative, a blockchain and emerging technologies consortium in the insurance industry, have announced that dRe is live and in production.

The companies said that as the first on-chain data calculation tool for reinsurance, the blockchain-powered platform is a significant milestone for parametric reinsurance, highlighting the tangible benefits of Arbol and RiskStream's strategic partnership announced in May.

Arbol's dRe Lifecycle Dashboard is a smart contract-based system that enables efficient and transparent parametric loss calculations for severe storm catastrophe transactions. Leveraging validated weather data from leading decentralised climate data network, dClimate, and Chainlink's industry-standard decentralised oracle network, the platform triggers a smart contract based on wind speed and location for specific peril events. The system automates claim initiation, notifications, and loss calculations, resulting in rapid payouts, streamlined data flow, and heightened transparency.

“dRe is a critical advancement in Arbol's pursuit to enhance transparency and efficiency in the insurance sector,” said Sid Jha, founder and chief executive of Arbol. “By leveraging blockchain technology and smart contracts, we are fundamentally reshaping the landscape of parametric (re)insurance. This platform is not just a step forward; it's a leap. It transforms how we manage severe storm catastrophe transactions by providing rapid, auditable, and reliable payouts. And while our current focus is on severe storm events, the system's design has far-reaching implications, paving the way for adaptations to other perils.”