Climate risk coverage platform Arbol and The Institutes RiskStream Collaborative have launched dRe, a data calculation tool for reinsurance.
The blockchain-powered platform calculates parametric loss for severe storm catastrophe transactions.
The platform activates smart contracts by using data leveraged from dClimate and Chainlink’s decentralised data network and automates claim initiation, notifications and loss calculation. In many cases, the claims and notifications will result in rapid payouts.
Collaboration between the two firms will allow for the clientele of Arbol to complete transactions with low latency, aiding the redevelopment after damages, while the firm extracts data from a dense climate archive.
The platform employs technologies by Kaleido and uses RiskStream's Canopy platform — the industry's first reusable blockchain framework.
Sid Jha, founder and CEO of Arbol, says: "dRe is a critical advancement in Arbol's pursuit to enhance transparency and efficiency in the insurance sector.
“By leveraging blockchain technology and smart contracts, we are fundamentally reshaping the landscape of parametric reinsurance. This platform is not just a step forward; it's a leap. It transforms how we manage severe storm catastrophe transactions by providing rapid, auditable and reliable payouts.
“While our current focus is on severe storm events, the system's design has far-reaching implications, paving the way for adaptations to other perils."
Patrick Schmid, president of The Institutes RiskStream Collaborative, adds: "Transitioning this parametric (re)insurance application to production on the RiskStream Canopy platform represents a pivotal demonstration of blockchain's potential in the insurance industry.
“We foresee this as the first of many applications we will bring to production for the benefit of RiskStream members, the industry, and the public we serve."
