Parametric protection achieves its ideal form when it leverages blockchain, machine learning and artificial intelligence (AI) to make coverage as simple, transparent and accessible as possible. Arbol is a coverage platform providing businesses of any size and location the ability to cover external risks, such as unexpected weather, using objective data. Customers can leverage Arbol’s on-chain weather data – rainfall, temperature, snowfall, etc. – to create a custom coverage program, which settles automatically when data indicates a loss.
Arbol’s policy details are encoded in smart contracts and priced using an AI underwriter. After events such as excess rainfall or abnormally low temperatures, smart contracts trigger a rapid payout to policyholders. This eliminates the subjectivity and uncertainty inherent to the traditional claims process by tying payouts to objective datasets, while making coverage more readily accessible to farms and businesses in regions of the world where traditional insurers don’t usually operate.
Arbol, the provider of marketplace technology supporting parametric risk transfer or weather insurance and that utilises smart contracts, has provided the backing for a new crop yield cover whose parametric triggers are based on the throughput measured by machinery sensors. The use of sensor technology in creating new parametric risk transfer, insurance and reinsurance product categories is a significant opportunity for the sector.
Arbol has been forward-looking in its development of parametric risk transfer solutions so far, but its latest initiative takes this to a new level, utilising the sensors that are integrated into farming machinery. Arbol has partnered with agricultural company PURIS to back its Yield Coverage Program for the dry pea crop, with the program set to be rolled out across the United States to all PURIS growers this year.
Today, we are proud to introduce the world to dClimate, a decentralized marketplace where climate data, models, and forecasts are standardized, monetized, and distributed.
Those of us living in developed nations might take the importance of accurate local weather forecasting for granted. The only reason to check the weather forecast in some locations is so that you can make personal preparations: Do I need to carry an umbrella today? Do I need a jacket? Snow boots? But while we might use a weather forecasting app on our phones to make personal preparations in our daily lives, there are numerous local businesses, small family farms, multinational corporations, industries with exposure to the weather, and national governments that rely on sound forecasting, climate data, and models to make critical planning decisions at every juncture.
Arbol, the provider of marketplace technology supporting parametric risk transfer and weather insurance, utilising smart contracts, has made a key hire, bringing onboard Hong Guo from GC Securities as its Chief Insurance Officer. Hong Guo joins Arbol as Executive Vice President and Chief Insurance Officer and will lead all insurance related strategy and operations for the company. Guo has almost three decades of global insurance and reinsurance market experience, beginning in China at PICC in the companies reinsurance division and then moving to work at reinsurance broker Guy Carpenter in 1997.
Blockchain. Machine learning. Alternative data. Climate change. It seems like Arbol Market, a new insure-tech platform, is hitting every buzzword, and the startup's quick growth is proving there's a market for its products.
Arbol was founded by Sid Jha, a former quant at Ken Griffin's Citadel who brought a machine-learning approach to trading commodities, and his brother Osho Jha, the firm's chief data scientist who has worked at data shops like M Science and asset managers like BlackRock and J. Goldman & Co.
Arbol Inc. announced today that it has closed its Series A fundraising round with commitments totaling nearly $7 million. Arbol's Series A round was oversubscribed and completed at a significant increase in valuation from its initial seed round. All of the company's original seed investors, including Finch Finance LLC and Space Capital, recommitted for the Series A round, in addition to one new investor, Mubadala Capital-Ventures.
NY-based insurance platform for parametric products Arbol announced that it has raised ~$7 million in a Series A round that included Finch Finance, Space Capital, and Mubadala Capital-Ventures.
Parametric InsurTech start-up Arbol has raised $7mn in series A funding, with existing investors Finch Finance and Space Capital putting in more capital and the Abu Dhabi-based fund Mubadala Capital-Ventures also buying equity.
Arbol has introduced weather risk insurance, a parametric coverage product, built on the blockchain to provide rapid payments in the event of loss without drawn-out claims processes. The company’s products are currently being deployed in the maritime, energy, hospitality, and agriculture industries, where weather risk can be severe.
We are excited to announce the world’s first live, in-production weather coverage product on the blockchain. It uses smart contracts and Chainlink oracles to provide anyone with an Internet connection access to blockchain-enforced weather coverage that immediately settles based on weather data. This completely changes the way businesses and farmers all over the world hedge risk, allowing them to safely expand their operations knowing they are fully covered against periods of unforeseen weather events.
What sets Arbol apart from traditional insurers is that our weather risk platform is parametric. What does this mean? It means that contracts are paid out based on data as opposed to a subjective claims process where a human adjuster comes to your home or businesses to assess the damage. This is important because the subjectivity, loopholes, delays, and potential for fraud that are seen all too often with traditional insurers are eliminated for our clients. Once the threshold for loss in a contract is triggered by the applicable dataset an agreement is structured on, the client gets paid automatically. It’s that simple.
They’re tackling a problem which affects billions of people.
Arbol provides crop insurance for small to medium-sized farmers or enterprises.
Blockchain is introducing substantial efficiency gains to the insurance industry.
Arbol, a provider of marketplace technology that supports parametric risk transfer or weather insurance and utilises smart contracts, told us that it has lined up $250 million of capacity from non-traditional market sources to help it expand.
Global Parametrics and reinsurance giant Hannover Re are together supporting a weather risk insurance pilot scheme that is powered by Arbol’s technology and smart contract driven marketplace for weather risk transfer.
Arbol CEO Sid Jha joined Rebellion Research CEO Alexander Fleiss for a discussion about the future of weather and insurance.
Arbol, another featured IPFS Case Study, was the subject of CTO Ben Andre’s talk on how IPFS helps them sell parametric weather protection agreements.
LA Blockchain Summit, Arbol CEO and Chainlink Co-Founder Sergey Nazarov explore how blockchain-based parametric insurance is reliably automating traditional insurance processes and providing cryptographic guarantees around real-world data feeds and payouts for users relying on critical coverage.
Sid Jha from Arbol presents a SmartCon Keynote on the demand and opportunity for smart contract insurance. Arbol integrated with Chainlink to bring parametric insurance to farmers around the world.
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Fortunately, smart contracts that can take into account these changing weather conditions via oracles can offer a solution, or at the very least a way for a person with little means to hedge against significant risk. For example, insurance projects like Arbol and Etherisc offer smart contract-powered crop insurance to farmers across the world.
Another player offering parametric insurance for climate risk is Arbol, which uses smart contracts on the Ethereum blockchain to codify its insurance policies. This enables it to automatically pay out claims in two weeks or less.
Cuban sees blockchain technology and smart contracts as a way to ensure the reliability and transparency of climate data. He’s also interested in the startup’s history working with Arbol, a New York-based insurance company, to offer weather insurance.
But the analog world’s insurance infrastructure often doesn’t reach these places.
“This is where I think decentralized crop insurance through insuretech protocols like Arbol that use things like Chainlink and Ethereum are truly amazing,” Nazarov said.
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“Weather insurance (Arbol is a great example). With a smart contract I’m soon going to be able to have the Mavs buy weather insurance where using a smart contract I pick the temperature and precipitation thresholds and the smart contract checks the National Weather Service for my ZIP Code or another chosen data source and on that day or period if the threshold is met, I get Ethereum deposited into my account automatically.
New York-based Arbol, which announced in January it had raised $7m in a Series A fundraising round, offers parametric insurance in areas such as agriculture, where it covers farmers in the event they suffer too much or too little rain, and promises to pay claims automatically within two weeks.