Arbol rolls out new wildfire parametric product for Western US states

Arbol, a technology-led underwriter of parametric risk transfer, climate and weather insurance or reinsurance business, has launched a new parametric wildfire insurance product for commercial and residential properties in high-risk wildfire regions in the U.S., with coverage limits up to $10 million.

The move extends Arbol’s expansion into new perils and geographies, and as per the firm, comes as part of a larger push to modernise climate risk transfer through vertically integrated infrastructure, combining product, technology, and capital to reach markets others can’t.

According to the announcement, Arbol’s new wildfire parametric initiative, which will target California, Colorado, Arizona, and other Western states, is backed by Somers Syndicate, a Lloyd’s syndicate.

The company also confirmed that the product will be led by Amit Shah, Collin Chen and Taimur Chaudhri, who each hold deep expertise in building parametric wildfire portfolios with robust underwriting results.

Arbol explained that their expertise in parametric wildfire underwriting and distribution is a core part of its strategy to scale into climate-exposed insurance markets where traditional carriers are pulling back.

“In California alone, over 150,000 homeowners have lost access to private coverage in recent years, while the FAIR Plan has ballooned with limited coverage options and rising premiums,” Arbol noted.

Moreover, the firm also explained that its parametric product will deliver fast, transparent payouts triggered by objective wildfire indicators – such as satellite-confirmed fire proximity – eliminating the need for traditional loss adjustment and enabling rapid recovery.

“With maximum limits of $10 million, the product is designed to meet the needs of both residential and commercial policyholders facing rising deductibles, exclusions, and non-renewals in traditional markets,” Arbol explained.

“There’s a deep need in the market for responsive, tech-forward wildfire coverage. As traditional carriers abandon these markets, the gap between rising risk and available coverage is only growing, leaving homeowners, businesses, and entire communities increasingly exposed,” commented Sid Jha, CEO of Arbol.

“Our wildfire product is designed to bridge that gap with speed, precision, and financial strength. By combining proven underwriting expertise, transparent parametric triggers, and robust reinsurance support, Arbol is bringing scalable capacity back to a market in crisis, efficiently, reliably, at a time when it’s needed most,” Jha added.