Arbol, a US-based parametric insurtech company, has secured $60m in its Series B funding round co-led by Giant Ventures and Opera Tech Ventures, with additional funds from Mubadala Capital.
Arbol aims to broaden the adoption of parametric insurance products and establish climate risk as a tangible, investable asset class.
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The company’s approach utilises global datasets for objective loss triggers, which are pivotal in the delivery of parametric insurance.
These data-driven triggers such as specific rainfall amounts or temperature thresholds are designed to replace the subjective and often time-consuming manual damage assessments traditionally conducted by claims adjusters.
Arbol’s technology ecosystem features automated structuring, AI-powered underwriting, pricing tools, and platforms for agents and brokers.
By integrating this technology with flexible risk capital, Arbol is able to underwrite custom solutions.
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By GlobalDataThe company plans to use the proceeds to accelerate its growth in the agriculture and renewable energy sectors.
The money will also be used by Arbol to fund its global expansion efforts, particularly in property and casualty and home insurance sectors, both within the US and internationally.
In addition to expanding its product offerings, Arbol plans to deepen its collaborations with financial institutions such as banks, which are increasingly grappling with climate-related risks affecting both their operations and clients.
Arbol founder and CEO Sid Jha said: “This Series B funding marks a pivotal moment for Arbol, affirming our achievements and propelling our mission forward to normalise parametric financial products and insurance globally as key strategies in climate risk management.
“Our ambition extends from empowering the world’s smallest subsistence farmers in underserved regions to securing the assets of the world’s largest corporations, ensuring they all have access to unmatched protection amidst the unpredictability of climate change.”
Giant Ventures co-founder and managing partner Cameron McLain said: “Arbol’s pioneering approach enables businesses, large and small, to manage climate risk where traditional insurance fails. Their achievements are hugely impressive, and we believe they are building an essential pillar of climate adaptation and the global financial infrastructure.”
In 2023, Arbol reported $250m in gross written premiums, with notable growth in its renewable energy and reinsurance businesses.
Arbol Insurance Services, a wholly-owned subsidiary of Arbol, achieved a milestone by becoming an approved Lloyd’s of London cover holder in May last year.
Moreover, Arbol has recently introduced Lilypad Insurance, a new carrier that caters to the unique insurance requirements of homeowners and property investors in coastal regions.
