Through parametric insurance products, Arbol offers swift, objective, and scalable coverage, addressing specific climate risks with no room for disputes or delays.
This innovative model not only closes the global protection gap but also ensures that from the smallest farmers to large corporations, all have access to reliable protection against climate volatility.
In this example, say you’re looking to protect your business in Kansas against low precipitation during the spring.
Low Precipitation
A County in Kansas
Now, let’s say you’ve already set $500,000 as your Limit of Liability. Based on the historical 30-year data for the given location in Kansas, choose an available precipitation trigger to calculate a premium:
Based on your chosen parameters, if it rains less than your trigger during the spring at your business in Kansas, you will receive a payout depending on the rain amount:
Easily extends protection to stakeholders often overlooked by traditional insurance, such as small-scale farmers and remote communities.
Streamlines payouts, reducing administrative delays and accelerating recovery efforts.
Utilizes clear, data-driven triggers for payouts, enhancing trust and understanding among all parties involved.
Unique Al underwriter incorporating cutting edge climate science with systematic portfolio management techniques.
Extensive data infrastructure, smart contracts and digital platforms to streamline insurance and derivative transactions.
Diversified risk capacity to deliver competitive pricing to customers.
Verify against objective, third-party data after a qualifying event
Payment issued in as little as 2 weeks after data verification
Insured assesses damage after a qualifying event
Insured submits claim
Insurer reviews claim
Adjuster assesses and validates claim
Claim is paid based on completion of assessment
Explore our FAQ to learn how Arbol leverages technology for parametric insurance, managing climate risks effectively for diverse industries.
Parametric insurance is a type of insurance that pays out when a specific event occurs, rather than based on the actual loss incurred. It uses predefined parameters or triggers, such as a certain amount of rainfall, wind speed, or temperature, to determine when a payout is made.
The pricing of Arbol’s insurance policies is based on several factors, including the type of peril covered, the geographic location, the specific parameters set for the triggers, and the desired payout amount. Premiums are calculated using sophisticated risk models that consider historical weather data and current climate trends.
One of the key advantages of parametric insurance with Arbol is the speed of claims processing. Because payouts are triggered automatically based on verified data, claims can be processed and paid out within a few weeks, sometimes within days, after the trigger event is confirmed. This contrasts with traditional insurance claims, which can take months or even years to settle.
Payouts in parametric insurance are determined based on the predefined parameters set in the policy. For example, if a policy is designed to pay out if rainfall exceeds 10 inches over a 24-hour period, the payout is made once the data shows that the trigger condition has been met. The amount of the payout is specified in the policy and is not dependent on the actual financial loss incurred by the policyholder.
Yes, Arbol’s insurance policies can be highly customized to meet each customer's specific needs. Users can define the exact weather conditions they want to insure against, set the payout parameters, and choose the coverage amounts. This flexibility allows for tailored solutions that address the unique risks faced by different businesses and individuals.
Are you interested in our products and want to request pricing tailored to your needs? Fill out our form and our team will provide you with a personalized quote.
