Arbol, a climate risk coverage platform, has released the first-ever parametric reinsurance solution powered by blockchain technology.
The genesis of dRe springs from the need to enhance transparency and efficiency within the insurance sector. With the introduction of this platform, Arbol aims to revolutionise the way severe storm catastrophe transactions are managed, bringing unprecedented speed, accountability, and reliability to the process. The blockchain-based tool represents a game-changer, providing a smart and transparent solution for parametric loss calculations in catastrophe scenarios.
Primarily, Arbol specialises in climate risk coverage, providing innovative, data-driven solutions to help manage unpredictable weather-related risks. With a keen focus on leveraging advanced technologies, Arbol has earned its stripes as a game-changing player in the InsurTech field.
The newly unveiled product, dRe, is a state-of-the-art smart contract system that facilitates efficient and transparent calculations for parametric loss associated with severe storm catastrophes. By making use of validated weather data from a leading decentralised climate data network, dClimate, and Chainlink’s highly reputed decentralised oracle network, dRe triggers smart contracts based on factors like wind speed and location for specific perilous events. The system automates the initiation of claims, notifications, and loss calculations, leading to faster payouts and enhanced transparency.
Beyond its core functionality, dRe also brings several other value-added features to the table. Thanks to its flexible design, the platform can adapt to various perils such as rain, heat, or wind, and even holds the potential for non-parametric insurance event notifications. Furthermore, the platform was developed leveraging RiskStream’s Canopy platform—the industry’s premier end-to-end reusable blockchain framework—while employing technologies from Kaleido, making it a pioneering creation in the InsurTech sector.
Arbol founder and CEO, Sid Jha, proudly shared his views on the new product. He commented, “dRe is a critical advancement in Arbol’s pursuit to enhance transparency and efficiency in the insurance sector. By leveraging blockchain technology and smart contracts, we are fundamentally reshaping the landscape of parametric (re)insurance.
“This platform is not just a step forward; it’s a leap. It transforms how we manage severe storm catastrophe transactions by providing rapid, auditable, and reliable payouts. And while our current focus is on severe storm events, the system’s design has far-reaching implications, paving the way for adaptations to other perils.”
In conclusion, as dRe evolves and garners recognition, Arbol and The Institutes RiskStream Collaborative are dedicated to upholding the platform’s core values of transparency, efficiency, and collaboration, promising an exciting future for blockchain applications in the insurance industry.
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