December 3, 2023

Arbol, a technology-led underwriter of parametric risk transfer, climate and weather insurance or reinsurance business, reports that notional risk limits transferred now exceed $1 billion, while written premiums are growing at record rates in 2023.

tree signGross written premiums (GWP) in the first half of 2023 are “significantly higher” than in the first half of 2022, the parametric specialist said.

Since its launch in early 2020, Arbol has now processed more than $1 billion in notional risk, demonstrating “corporate trust in Arbol for their climate risk coverage needs,” the company explained.

“We are very proud of Arbol’s phenomenal growth and significant achievements in the first half of 2023,” explained Arbol founder and CEO Sid Jha. “Our dedicated team and the trust of our customers and partners make this possible. As we continue to grow globally and develop new products, we remain committed to driving innovation, increasing transparency and supporting resilience in the climate risk management space.”

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

In addition, the recently announced partnership with global specialty insurer Beazley on the Lloyd’s policyholder facility for Arbol’s US insurance business helped drive further growth.

Arbol also recently partnered with the Institutes RiskStream Collaborative to put parametric reinsurance trigger data processing and verification on the blockchain.

The company now aims to expand further internationally to drive further growth in premiums and limit transactions.

In particular, Arbol sees great potential in its parametric weather, climate and disaster risk transfer products in Europe, Latin America and Asia Pacific, and says it is “working on developing products to address the unique climate risks in these regions”.

“Equipped with a proprietary pricing platform and AI-powered underwriting for expanded distribution, a robust climate data infrastructure, and a suite of parametric financial products tailored to address climate risk across global balance sheets and supply chains,” Arbol explained.

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