Arbol reports $70m of gross premium transacted in 2021

Share

Arbol, the technology-led underwriter of parametric risk transfer, climate and weather insurance business, has reported transacting an impressive $70 million in gross premium through its first full-year of operations in 2021.

arbol-logoNotional or limit transferred will be much higher and Arbol said it was cash-flow positive for 2021.

It’s difficult to compare, but in 2020 Arbol transacted $15 million in notional risk and $2.2 million in gross premium.

Perhaps more impressive than Arbol’s traction in terms of premium, is the fact the company has managed to deliver a loss ratio of less than 50% on capacity for transacted deals, while ending the last year cash-flow positive.

“We created Arbol to make it easy and efficient for businesses of any size or location to build climate resilience,” Sid Jha, Founder and CEO, Arbol commented.

“Over 50 percent of Arbol’s clients in 2021 enrolled in climate risk coverage for the first time to reduce impact on revenues and supply chains. This demonstrates not only the urgent need for data-driven climate risk solutions, but just how many businesses and regions today are underserved by the traditional insurance industry.”

Arbol has developed a technology platform through which it can provide global climate risk solutions for businesses in the agriculture, energy (traditional and renewable), maritime, and leisure sectors.

With a proprietary pricing model, Arbol’s clients can get live pricing through its technoloyg in a matter of minutes.

The Arbol architecture makes use of a decentralized climate data network (dClimate), blockchain technology and an artificial intelligence (AI) underwriter designed to price risks efficiently.

The goal is to make parametric protection and Arbol’s SaaS services accessible and affordable for traditionally underserved and underinsured regions and businesses.

In 2021, Arbol added clients in industries such as maritime, leisure and renewable energy, across regions including North America, Europe, and Australia.

The company said that the majority of new business it entered into in 2021 was aggregated or transacted directly from smaller businesses that might otherwise find it challenging or impossible to properly manage and hedge climate risk.

CEO Sid Jha added, “In addition to being able to cover smallholder farmers in underinsured regions like Cambodia for as little as $11 in premium, we are rapidly making parametric climate risk products more accessible, transparent, and user-friendly for historically underserved stakeholders.”

———————————————————————
Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.