Arbol, a global climate risk solutions platform, today announced the formation of Climate Risk Insurance Company, the first captive insurance company dedicated to climate risk management. Climate Risk Insurance Company is a Connecticut domiciled sponsored captive focused on helping businesses and corporations manage a range of climate risks, like temperature, rainfall, and catastrophic storms.
Arbol is a global climate risk coverage platform and FinTech company offering full-service solutions for any business looking to analyze, manage and transfer climate risk. Arbol’s products offer parametric coverage which pays out based on objective data triggers rather than subjective assessment of loss. Last year, Arbol launched Captive+Parametric, a first of its kind risk management solution for enabling corporations to simply and effectively assess and manage emerging risks like climate and weather using captives.
“Arbol provides a full service, end-to-end risk management and transfer solution for managing climate risks using a technology and data driven platform,” said Hong Guo, Chief Insurance Officer, Arbol. “The formation of Climate Risk Insurance Company further extends Arbol’s services towards climate risk retention and management. We are excited about our capability to help corporations operationalize their climate risk management process using our full suite of services, tools and products.”
Arbol unveiled its Captive+Parametric solution last year at the annual VCIA conference in Vermont to help corporations transfer climate risks into a captive insurance vehicle using a parametric structure. The program enables corporations to take advantage of all of the tools and services available in the Arbol ecosystem, including a dedicated climate data platform (dClimate), proprietary pricing and structuring tools, and non-traditional, dedicated capacity.
“We are pleased that Arbol has chosen Connecticut to domicile the first captive company focused solely on climate risk management,” said Fenhua Liu, Deputy Commissioner and Director, Connecticut Captive Insurance Division. “Climate risk is an important but underutilized use case that the Arbol team has identified for how captives can be used to help corporations proactively manage emerging risks.”
In addition to its captive product, Arbol offers end-to-end climate risk solutions for businesses of any size in the forms of insurance, reinsurance, and derivatives for the agriculture, energy, maritime, and leisure industries. Its proprietary pricing platform is powered by smart contract (blockchain) and AI technology, which enables Arbol to bring greater efficiency and transparency to the weather risk market.
Arbol’s key differentiator versus traditional InsurTech or climate analytics platforms is the complete ecosystem it has built to address climate risk. This ecosystem includes a massive climate data infrastructure, scalable product development, automated, instant pricing using an artificial intelligence underwriter, blockchain-powered operational efficiencies, and non-traditional risk capacity bringing capital from non-insurance sources. By combining all these factors, Arbol brings scale, transparency, and efficiency to parametric coverage in stark contrast to the oligopoly of reinsurers that currently dominate the climate risk insurance space.