Arbol Platform Transacts $100 Million+ in Gross Written Premium in First Half of 2022
Arbol Inc. (Arbol), a global climate risk solutions platform, today announced it transacted $100 million+ in gross written premium (GWP) in the first half of 2022. The 100 million+ transacted through the Arbol platform in 1H of 2022 is greater than all GWP ($70 million) transacted in 2021.
Arbol is a global climate risk coverage platform and FinTech company offering full-service solutions for any business looking to analyze, manage and transfer climate risk. Arbol’s products offer parametric coverage which pays out based on objective data triggers rather than subjective assessment of loss.
“The traction and scale the Arbol platform continues to see is a testament to the market demand for end-to-end parametric climate risk solutions,” said Sid Jha, Founder and CEO, Arbol. “As volatile weather conditions like record droughts in Texas continue to hurt expected crop yields for agribusinesses and farmers, the need for data-driven and objective financial products like insurance have never been more essential. Parametric coverage, powered by next generation technology and data has the ability to bring both better efficiency and transparency to the weather risk market while chipping away at the sizable global coverage gap for climate disasters.”
The premium transacted in the 1H of 2022 came from businesses in the agriculture, energy (traditional and renewable), and reinsurance sectors. Premium sizes booked through Arbol’s platform ranged from premiums as small as $500 to millions of dollars, covering a range of clients from smallholder farmers and agribusinesses to utilities and institutional clients. As an example of Arbol’s impact, it has paid hundreds of agricultural clients tens of millions of dollars this year to cushion against the devastating drought in the Texas area. In the energy sector Arbol works extensively with the wind energy sector providing a range of products to reduce revenue volatility for wind farms due to wind speed variations.
“Stakeholders around the world of every size are waking up to the urgent reality that climate risks need to be properly managed,” said Hong Guo, EVP and Chief Insurance Officer, Arbol. “We are always looking to address gaps that exist in the wider market to enable effective and forward looking climate risk solutions. Our entire ecosystem for managing climate risk, bringing data, rapid pricing tools, and risk capacity under one roof is aimed at giving global businesses all of the tools needed to build lasting climate resilience in one place.”
Arbol offers end-to-end climate risk solutions in the forms of insurance, reinsurance, and derivatives for businesses of any size or location in the agriculture, energy, maritime, and leisure industries. The Arbol platform is powered by smart contract (blockchain) and AI technology, which enables the platform to bring increased transparency and efficiency to the weather risk market. Its automated pricing platform launched in early 2020, with premium growth rapidly expanding from $2 million transacted in the first eight months to $100 million+ in the 1H of 2022.
Arbol’s key differentiator versus traditional InsurTech or climate analytics platforms is the complete ecosystem it has built to address climate risk. This ecosystem includes a massive climate data infrastructure, scalable product development, automated, instant pricing using an artificial intelligence underwriter, blockchain-powered operational efficiencies, and non-traditional risk capacity bringing capital from non-insurance sources. By combining all these factors, Arbol brings scale, transparency, and efficiency to parametric coverage in stark contrast to the oligopoly of reinsurers that currently dominate the climate risk insurance space.
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