Global climate risk solutions platform Arbol and leading insurer, Beazley, have announced the launch of specialist parametric weather products to the US market. The innovative products are now available for a range of perils, including low and excess precipitation, low and excess wind speed, high and low temperature, and lack of solar irradiance.
Industry sources revealed that Arbol’s proprietary pricing platform is powered by artificial intelligence and a dedicated climate data infrastructure to inform underwriting operations. Weather data indices are used to develop customized parametric products, using triggers specific to the peril and the insured.
Hong Guo, EVP and Chief Insurance Officer of Arbol stated, “This milestone validates our commitment to delivering innovative risk management solutions. It opens new possibilities to serve our clients and the insurance industry as businesses seek to effectively manage emerging climate risks.”
Neil Kempston, Head of Incubation Underwriting at Beazley, stated, “Beazley is committed to supporting the development of weather parametric products that ease the challenges the agricultural supply chain and renewable energy markets face as we move to net zero. By building a long-term partnership with Arbol we can deliver for our brokers and their clients.”
Industry sources added that Arbol Insurance Services (an Arbol subsidiary) has also now been appointed as Lloyd’s coverholder, with a facility led by Beazley supported by Tokio Marine Kiln and Nephila. Guy Carpenter served as the sole placing broker and was responsible for securing the required capacity.