Arbol unveils new underwriter subsidiary focused on parametric risk

New York-based InsurTech Arbol has launched Arbol Underwriters (AUL), which will be a company focused on offering reinsurance capacity for parametric insurance risks.

 According to Insurance Journal, AUL will be registered in Bermuda and intends to source original risks through a range of channels, including partnerships with fronting insurance carriers. Through AUL, individuals and companies will be able to buy parametric insurance to hedge their climate risk.

Arbol currently uses decentralised climate data, AI and blockchain technology to power its pricing platform and to provide parametric protection products and software-as-a-service services to aid its customers and abate climate risks.

AUL has also partnered with SIG Re – a technology and analytics-driven reinsurer – to provide keystone committed capacity, with AUL appointed by SIG Re as insurance agent for its parametric reinsurance business. The two companies will look to tackle the protection gap that exists in the insurance/reinsurance sector in the area of climate risk.

Arbol chief insurance officer and AUL CEO Hong Guo said, “We are excited about setting up a platform in Bermuda to offer parametric solutions in the form of reinsurance. Leveraging Arbol’s massive, cutting-edge data infrastructure and proprietary pricing tools, AUL will be able to provide innovative reinsurance solutions to its clients.”

SIG Re CEO Todd Simkin said, “We are delighted to grow our existing relationship with Arbol through this new underwriting arrangement. AUL’s core emphasis on quantitative risk analytics and technology strongly aligns with our way of thinking at SIG Re.”

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