Arbol transfers $1 billion in parametric risk and aims for international expansion –

Arbol, a technology underwriter of parametric risk transfer, climate and weather insurance or reinsurance business, said it passed $1 billion in the notional risk transferred limit, while premiums written for 2023 roll out at a record pace.

The parametric specialist said it saw “substantial increases” in gross written premium (GWP) for the first half of 2023, which already exceeded its performance in the first half of 2022.

Since its launch in early 2020, Arbol has now traded more than $1 billion in notional risk, the company explained, which it says demonstrates “the trust companies place in Arbol for their weather risk hedging needs.”

“We are very proud of Arbol’s incredible growth and significant achievements in the first half of 2023,” explained Sid Jha, Founder and CEO of Arbol. “Our dedicated team, along with the trust of our customers and partners, made this possible. As we continue to expand globally and develop new products, we remain committed to driving innovation, promoting transparency and supporting resilience in the climate risk management industry.

Arbol says much of its growth has come from successes in the energy and agriculture sectors, thanks in part to its bespoke technology solutions.

In addition, a recently announced collaboration with global specialty insurer Beazley on a Lloyd’s hedging facility for Arbol’s US insurance business helped drive growth.

Arbol also recently partnered with the RiskStream Collaborative institute to put parametric reinsurance trigger data processes and validation on a blockchain.

The company is now targeting further international expansion, to fuel further premium growth and limit transactions.

In particular, Arbol sees strong potential for its parametric weather, climate and disaster risk transfer products in Europe, LATAM and APAC, saying it is “working to develop products to address distinct climate risks in these regions.”

“Equipped with proprietary pricing platforms and AI-powered underwriting for large-scale distribution, a robust climate data infrastructure, and a suite of bespoke parametric financial products like insurance, Arbol is well-suited to address climate risks globally across balance sheets and supply chains,” the company explained.

Printable, PDF and email version