Parametric insurance provider Arbol has launched a solution for climate change risk management, Captive+Parametric. Announced at the Vermont Captive Insurance Association’s (VCIA) annual conference, the solution enables companies to take immediate action in climate change risk management by transferring climate risks into captives through a parametric structure. Arbol implements machine learning, artificial intelligence and blockchain technology to provide transparency and efficiency within the weather risk market. Captive+Parametric will provide participating companies with full access to Arbol’s technology and data tools, including data and climate intelligence, online structuring and pricing tools, and automatic settlements. Hong Guo, executive vice president and chief insurance officer at Arbol, explains the demand for the solution: “90 per cent of Fortune 500 companies have captive insurers for managing traditional and emerging risks. As severe weather events become a greater point of global concern, the traditional risk management framework will need to account for risks related to climate and weather.” “We believe that a captive is the best mechanism and that parametric protection is the ideal product structure for corporations to start actively managing mounting climate risks,” Guo adds. The Captive+Parametric solution follows Arbol’s launch of a standalone network and climate intelligence platform, dClimate, earlier this year.
