Insurtech platform for parametric insurance solutions Arbol has launched Arbol Underwriters Ltd (AUL), a Bermuda-based registered insurance agent that pairs reinsurance capacity with parametric insurance risks.
Arbol utilises decentralised climate data, blockchain technology and artificial intelligence to leverage its proprietary pricing platform, through which it offers both parametric protection and Software-as-a-Service products to allow customers to transfer and manage their climate risks.
The platform launched Captive+Parametric, a solution for climate change risk management, in August to allow companies to take immediate action in climate change risk management by transferring climate risks into captives through a parametric structure.
AUL will source original risk by partnering with fronting insurance carriers through which volume programme business and customised coverage solutions will be written for individuals and businesses to purchase parametric insurance coverage.
Registered as an insurance agent by the Bermuda Monetary Authority, the underwriting arm will also work with reinsurers and captives in the open market to design their outward parametric coverage solutions.
Hong Guo, chief insurance officer of Arbol, will serve as AUL’s CEO, while Osho Jha, co-founder and chief data scientist, will assume the role of chief underwriting officer of AUL.
Guo comments: “We are excited about setting up a platform in Bermuda to offer parametric solutions in the form of reinsurance. Leveraging Arbol's massive, cutting-edge data infrastructure and proprietary pricing tools, AUL will be able to provide innovative reinsurance solutions to its clients.”
In addition, AUL has partnered with SIG Re, a Bermuda-based technology-driven reinsurer, to provide capacity from the reinsurance market, while AUL will act as an insurance agent for SIG Re’s parametric reinsurance business.
Todd Simkin, CEO of SIG Re, adds: “We are delighted to grow our existing relationship with Arbol through this new underwriting arrangement. AUL’s core emphasis on quantitative risk analytics and technology strongly aligns with our way of thinking at SIG Re.”
