Arbol Q2 Update

by Arbol Team

Dear Stakeholders and Friends,

Hope you are well. I wanted to update you on Arbol as we start a new quarter. We went live about 4 months back and after the first three months we crossed $1mn in premiums. A few weeks later and we are approaching $2mn in premiums across the platform representing over $10mn of notional risk transacted.

We have been pleasantly surprised by the pace of demand and the variety of clients who have availed weather hedges. One of the key differentiating factors has been our machine learning based pricing algorithms which allow even the smallest deals to join large pools with a ready-to-deal price instead of waiting on quotes. Combined with our in-house designed products that cater to different crops and industries, we give access to a much broader base of clients than the narrow set of utilities and corporations that mostly operate in this market.

Beyond farmers, commercial agriculture companies hedging supply chains, microlenders, and others have seen the benefits managing their weather exposure. As we continue to grow in agriculture, our platform’s scale and design are allowing us to expand across industries. We recently made an experienced hire in the energy space from a major reinsurer to build out our presence in traditional and renewable energy weather risk products.

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