Collaboration to harness blockchain technology to streamline parametric loss calculations and enhance transparency in the insurance industry
The partnership integrates Arbol into RiskStream's network of industry leaders dedicated to unlocking the potential of blockchain in risk management and insurance. The consortium actively explores insurance-specific blockchain and distributed ledger technology (DLT) applications to reduce operating costs, enhance systems, and improve customer experiences across the $1 trillion insurance industry.
Arbol and RiskStream's collaboration aims to leverage blockchain technology to streamline data flow, increase transparency, and enable rapid payouts in parametric insurance and reinsurance programs, addressing the challenges in managing seasonal and catastrophic climate risks, such as major storms and hurricanes.
The partnership between Arbol and RiskStream Collaborative will initially focus on developing an innovative, blockchain-driven parametric solution for the insurance industry. This solution will enhance trust and collaboration among all parties involved. It could be extended to non-parametric insurance solutions for reinsurance programs, harnessing the unique value of smart contracts and DLTs.
Sid Jha, Founder and CEO of Arbol, said, "Our collaboration with The Institutes RiskStream Collaborative marks an exciting step in bringing innovation to the parametric insurance space. By leveraging smart contracts and distributed ledger technology, we aim to transform how climate insurance and reinsurance deals are managed, introducing unprecedented transparency and efficiency to global climate risk management."
“We are excited to welcome Arbol into the collaborative as a solution provider. Their work in the parametric (re)insurance space opens the door for our producer, carrier/cedent and reinsurer members to leverage their automated solutions,” said Patrick Schmid, President of The RiskStream Collaborative. “Arbol’s application, which works with external blockchain oracle data for various perils, aims to leverage RiskStream’s Canopy platform. The goal is to improve industry-wide operational efficiency and lead to a better overall insurance experience.”
The strategic partnership between Arbol and The Institutes RiskStream Collaborative seeks to create significant value for the insurance industry by showcasing the power of blockchain technology and decentralized data storage. The collaboration is committed to delivering cutting-edge solutions that address current industry challenges while paving the way for future advancements in parametric insurance and beyond.