We help the agricultural industry by providing parametric products that can protect against adverse weather and climatic risks of almost any kind, including crop yields, precipitation, temperature, and more.
Our team brings decades of combined experience helping clients across the agricultural sector hedge and manage climate risk.
Our end-to-end risk management ecosystem is designed to create solutions that meet the needs of your business and clients and help them build financial climate resilience.
Any business in any agricultural supply chain that wishes to hedge against the risk of adverse weather and climate events.
Weather index products to hedge against financial risk caused by low or high crop yields.
Arbol utilizes crop yield data published by trusted, third-party sources to design and implement a customized crop yield index to mitigate each client’s unique risks. Clients can define the proportion each crop and location represents in the crop yield index, and the specific crop yield triggers that result in payment. When published, the trusted, third-party crop yield data is applied to the chosen parameters and a payment amount is determined.
Globally, subject to availability of trusted, third-party data.
A cotton gin in Lubbock, Texas, was concerned about low cotton yields that would reduce bales ginned and revenue. To hedge against the risk of decreasing revenue, we structured a cotton yield index product to pay if cotton yields were less than the chosen trigger.
Cottin Gin
Lubbock, TX
Low Cotton Yields
Crop Yield in Lubbock County, TX
Crop Year
$1,000,000.00
271.1 lbs/acre
177.5 lbs/acre
$10,683.76
Any business in any agricultural supply chain that wishes to hedge against the risk of adverse weather and climate events.
A precipitation index product to hedge against financial risk caused by adverse precipitation events like drought, flood, low and high soil moisture, and excess and insufficient snow.
Arbol utilizes precipitation data published by trusted, third-party sources to design and implement a customized precipitation index to mitigate each client’s unique risks. Clients can define the proportion each location represents in the precipitation index, and the specific precipitation triggers that result in payment. When published, the trusted, third-party precipitation data is applied to the chosen parameters and a payment amount is determined.
Globally, subject to availability of trusted, third-party data.
A wheat farmer in Garden City, Kansas, was concerned about low precipitation that would reduce wheat yields. To hedge against the risk of decreasing revenue, we structured a precipitation index product to pay if precipitation was less than the chosen trigger.
Farmer
Garden City, KS
Low Rainfall
Cumulative Precipitation at Location
2.50"
3/1 — 4/31
$100,000.00
3.39"
1.57"
$54,945.05
Any business in any agricultural supply chain that wishes to hedge against the risk of adverse weather and climate events.
Weather index products to hedge against financial risk caused by adverse weather temperatures.
Arbol utilizes temperature data published by trusted, third-party sources to design and implement a customized temperature index to mitigate each client’s unique risks. Clients can define the proportion each location represents in the temperature index, and the specific temperature triggers that result in payment. When published, the trusted, third-party temperature data is applied to the chosen parameters and a payment amount is determined.
Globally, subject to availability of trusted, third-party data.
A fruit packer in Lakeland, Florida, was concerned about freezing temperatures that would reduce fruit volumes. To hedge against the risk of decreasing revenue, we structured a temperature index product to pay if temperature was less than the chosen trigger.
Fruit Packer
Lakeland, FL
Freezing Temperature
Minimum Temperature
2.50"
12/1 — 2/28
$500,000.00
32°F
28°F
$125,000.00
Any business in any agricultural supply chain that wishes to hedge against the risk of adverse weather and climate events.
Weather index products to hedge against financial risk caused by adverse weather events like hurricane, wind, water levels and temperatures, vegetative health, and more.
Arbol utilizes weather data published by trusted, third-party sources to design and implement a customized weather index to mitigate each client’s unique risks. Clients can define the proportion each location represents in the weather index, and the specific weather triggers that result in payment. When published, the trusted, third-party weather data is applied to the chosen parameters and a payment amount is determined.
Globally, subject to availability of trusted, third-party data.
A grain exporting company in New Orleans, Louisiana, was concerned about a hurricane that would disrupt grain shipments. To hedge against the risk of decreasing revenue, we structured a hurricane index product to pay if maximum sustained wind speeds of the hurricane were greater than the chosen trigger.
Grain Exporter
New Orleans, LA
Hurricane
Max Wind Speed in Circle
6/1 — 11/30
$10,000,000.00
Cat 2
Cat 5
We can structure and build a program for almost anything. We specialize in building customized climate solutions to fit the needs of your business and clients.
Our proprietary pricing platform will get a quote for your business light years faster than the rest of the industry.
When your selected triggers are met, you get a rapid payout without the mountains of paperwork, months-long settlement process, or needless disputes.
Explore our FAQ to learn how Arbol leverages technology for parametric insurance, managing climate risks effectively for diverse industries.
Parametric insurance is a type of insurance that pays out when a specific event occurs, rather than based on the actual loss incurred. It uses predefined parameters or triggers, such as a certain amount of rainfall, wind speed, or temperature, to determine when a payout is made.
This differs from traditional insurance, which requires an assessment of the actual damage before a claim is paid out. Parametric insurance offers faster, more transparent, and more predictable payouts.
Parametric insurance offers several benefits over traditional insurance, including:
Parametric crop insurance offers immediate payouts if specific weather parameters that could affect crops, like rainfall levels or temperatures, reach predefined thresholds. This helps farmers manage financial risks from adverse weather without the lengthy claims process typical of traditional insurance.
Arbol covers a wide range of climate and weather-related perils, including but not limited to:
These coverages help protect businesses and individuals against the financial impacts of adverse weather conditions and climate events. Arbol can also cover perils/risks not listed here. Please reach out to our team for more information on customized solutions and products.
Are you interested in our products and want to request pricing tailored to your needs? Fill out our form and our team will provide you with a personalized quote.
