Arbol, a parametric insurance-tech company, announced it had secured $60m in its Series B funding round co-led by Giant Ventures and Opera Tech Ventures, with additional funds from Mubadala Capital. Arbol aims to widen the adoption of parametric insurance products and establish climate risk as a tangible and investable asset class.
The company’s approach utilizes global datasets for objective loss triggers, which are pivotal in the delivery of parametric insurance. These data-driven triggers, like rainfall amounts or temperature thresholds, replaced the subjective and often time-consuming manual damage assessments traditionally conducted by claims adjusters.
Arbol’s technology ecosystem offers automated structuring, AI-powered underwriting, pricing tools, and platforms for agents and brokers. And by integrating this technology with flexible risk capital, Arbol is able to underwrite custom solutions.
The company plans to use the funding to accelerate its growth in the agriculture and renewable energy sectors. Arbol will also use the funding to fund its global expansion efforts, particularly in the property and casualty and home insurance sectors, both within the US and internationally.
Along with expanding its product offerings, Arbol plans to deepen its collaborations with financial institutions such as banks – which are grappling with climate-related risks affecting their operations and clients.
Last year, Arbol reported $250 million in gross written premiums, with notable growth in its renewable energy and reinsurance businesses. And Arbol Insurance Services, a wholly-owned subsidiary of Arbol, achieved a milestone by becoming an approved Lloyd’s of London cover holder last year. Arbol also recently introduced Lilypad Insurance, a new carrier that caters to the unique insurance requirements of homeowners and property investors in coastal regions.
KEY QUOTES:
“This Series B funding marks a pivotal moment for Arbol, affirming our achievements and propelling our mission forward to normalize parametric financial products and insurance globally as key strategies in climate risk management.”
“Our ambition extends from empowering the world’s smallest subsistence farmers in underserved regions to securing the assets of the world’s largest corporations, ensuring they all have access to unmatched protection amidst the unpredictability of climate change.”
- Arbol founder and CEO Sid Jha
“Arbol’s pioneering approach enables businesses, large and small, to manage climate risk where traditional insurance fails. Their achievements are hugely impressive, and we believe they are building an essential pillar of climate adaptation and the global financial infrastructure.”
- Giant Ventures co-founder and managing partner Cameron McLain
