Hong Guo, CIO, Arbol Insurance
12 August 2021

Arbol unveils climate risk solution for captives

InsureTech platform Arbol has launched a ‘Captive+Parametric’ solution, which will help corporations take immediate action on climate change risk.

Arbol will allow corporations to transfer climate risks into captives using a parametric structure, giving access to it its full suite of technology and data tools.

Corporations will have access to more than 1,000 terabytes of standardised and cleaned climate data, forecasts, and models through its dClimate data platform. The dClimate platform – standalone data network and climate intelligence platform – was released earlier this year, and a dClimate data marketplace will launch in the autumn.

Online structuring and pricing tools will also allow corporations to choose the risks that their businesses are facing, while Arbol’s proprietary pricing platform offers a range of coverage options and pricing to choose from.

Finally, rapid automatic settlements mean that when triggers in a parametric contract are met Arbol’s smart contracts will settle automatically and trigger a rapid payout with no claims process and no additional paperwork.

The InsureTech platform leverages machine learning, artificial intelligence (AI), and blockchain technology to bring transparency and efficiency to the weather risk market. Its proprietary pricing platform allows individuals and businesses to customise parametric coverage programs for a variety of weather risks across several industries and currently serves individuals and businesses in the agriculture, energy, maritime, and hospitality sectors.

Arbol closed a Series A funding round in January led by Mubadala Capital-Ventures – the venture capital arm of the Abu Dhabi-based sovereign wealth fund – and announced late last year that it had secured more than $1bn of dedicated, non-traditional risk capacity to further its expansion and offer competitive pricing.

Hong Guo, Arbol’s executive vice president and chief insurance officer, said: “As the demand for companies to better manage and disclose climate change risks grows as severe weather events become a greater point of global concern, the traditional risk management framework will need to account for risks related to climate and weather.

“We believe that captive is the best mechanism and that parametric protection is the ideal product structure for corporations to start actively managing mounting climate risks.”

He finished; “Arbol’s new Captive+Parametric solution will give corporations the ability to leverage Arbol’s proprietary pricing tools and climate data platform to easily implement this process.”

More on this story

28 February 2022   The captive-parametric solution is seeing rapid growth.

More on this story

28 February 2022   The captive-parametric solution is seeing rapid growth.