What is parametric insurance?

Arbol’s insurance products are parametric, meaning there are data-driven payouts or outcomes that are based around pre-determined parameters—specifically, weather and climate events. By contrast, traditional indemnity insurance pays as a result of a claims adjustment process, often involving a physical inspection of damage—a process that is typically time-consuming and burdensome. Arbol takes this administrative burden out of the process by replacing manual work with decentralized data from independent, third-party, trusted sources such as the National Weather Service, Academic Sources, and Government Agencies across the globe.

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Who can buy parametric insurance?

Arbol’s insurance products provide coverage to companies affected by weather and climate events. Arbol serves a multitude of industries such as Agriculture, Construction, Energy, Transportation, etc. There is even traction within the Hospitality and Tourism industries. Any company that may be interested in mitigating risk caused by droughts, earthquakes, floods, high wind speeds, hurricanes, wildfires, etc. can benefit from Arbol’s insurance products. Arbol’s products are sold exclusively through insurance agents.

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Where does Arbol sell parametric insurance?

Arbol can deliver these products globally, wherever there is an appropriate regulatory framework and weather and climate data that both Arbol and the client find acceptable.

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How does Arbol build parametric insurance products?

Arbol’s structuring and pricing teams utilize dClimate—a decentralized, blockchain-enabled warehouse for weather and climate data. Through this warehouse, Arbol pulls historical data that is specific to each client in order to build bespoke, parametric insurance products that can mitigate risk.

Arbol utilizes decentralized data from independent, third-party, trusted sources such as the National Weather Service, Academic Sources, and Government Agencies across the globe.

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‍Data Sources:

Australian Energy Market Operator (AEMO)

Alberta Electric System Operator (AESO)

Brentmark

California Department of Water Resources

Centre for Environmental Data Analysis (CEDA)

Deutscher Wetterdienst Climate Data Center (DWD CDC)

Climate Prediction Center (CPC)

Copernicus Climate Change Service (C3S)

European Center for Medium Range Weather Forecasts (ECMWF)

Koninklijk Nederlands Meteorologisch Instituut (KNMI)

National Centers for Environmental Information (NCEI)

National Centers for Environmental Prediction (NCEP)

National Oceanic and Atmospheric Administration (NOAA)

Oregon State University

University of California, Santa Barbara

University of Nebraska-Lincoln

United States Department of Agriculture (USDA)