Arbol passes $1bn of parametric risk transferred, targets international expansion

Arbol, a technology-led underwriter of parametric risk transfer, climate and weather insurance or reinsurance business, has reported now surpassing $1 billion of notional risk limit transferred, while 2023 premiums written are running at a record pace.

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

Since its launch in early 2020, Arbol has now transacted more than $1 billion in notional risk, the company explained, which it says demonstrates “the trust businesses place in Arbol for their climate risk- coverage needs.”

“We’re very proud of the amazing growth and significant achievements Arbol has made in the first half of 2023,” explained Sid Jha, Founder and CEO of Arbol. “Our dedicated team, as well as the trust from our clients and partners, have made this possible. As we continue to grow globally and develop new products, we remain committed to driving innovation, promoting transparency, and supporting resilience in the climate risk-management sector.”

Arbol says a lot of its growth comes from successes in the energy and agriculture sectors, owing in part to its bespoke technology solutions.

In addition, a recently announced collaboration with global specialty insurer Beazley on a Lloyd’s coverholder facility for Arbol’s U.S. insurance business, has helped to drive further growth.

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

The company now targets further expansion internationally, to fuel additional growth in premiums and limit transacted.

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

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