Technology-led underwriter of parametric risk transfer, climate and weather insurance business, Arbol, has today reported that it transacted more than $100 million in gross written premium (GWP) in the first half of 2022.
Impressively, this figure is more than 70% higher than the $70 million in GWP the firm transacted in all of 2021. Arbol states that the premium transacted so far this year came from businesses in the agriculture, energy – both traditional and renewable – and reinsurance sectors.
The company’s automated pricing platform launched in early 2020, and premium growth has been fairly rapid from the $2 million transacted in the first eight months of operations, to the more than $100 million reported for the first half of this year.
During H1 2022, premium sizes booked through its platform ranged from as small as $500 to millions of dollars, covering smallholder farmers, agribusinesses, utilities, and institutional clients.
Arbol notes that so far in 2022, it has paid hundreds of agricultural clients tens of millions of dollars to alleviate the negative impacts of the drought in the Texas area.
Sid Jha, Founder and Chief Executive Officer (CEO), commented, “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.
“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.”
Arbol’s platform offers end-to-end climate risk solutions in the forms of insurance, reinsurance, and derivatives for businesses in the agriculture, energy, maritime, and leisure sectors. The platform is powered by blockchain and AI tech, which it says enables increased transparency and efficiency within the weather risk market.
Hong Guo, EVP and Chief Insurance Officer, said, “Stakeholders around the world of every size are waking up to the urgent reality that climate risks need to be properly managed.
“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.”