The Series B funding bolsters Arbol's ability
to tackle the record-breaking number of climate-related insured
losses
NEW
YORK, April 30, 2024 /PRNewswire/ -- Arbol,
a leading climate risk solutions provider operating in over 15
countries, announced today that it has closed a $60 million Series B funding round, co-led
by Giant Ventures and Opera Tech Ventures with participation from
Mubadala Capital.
In the wake of a year marked by unprecedented climate events,
with 398 natural disasters causing $380
billion in losses and a record 37, billion-dollar insured
loss events, Arbol's funding represents a long overdue moment for
climate risk insurance. Parametric insurance delivers payouts
based on predefined and trusted climate data triggers, such as
rainfall amounts or temperature thresholds. Objective data triggers
replace the subjective and time-consuming manual damage assessments
conducted by claims adjusters, enabling quicker delivery of urgent
financial relief to communities following catastrophic climate
events. For example, if rainfall falls below a certain level,
adversely affecting crop yields, farmers could receive rapid
financial support when facing reduced production due to specific
weather conditions.
Arbol brings scale, transparency, and efficiency to climate risk
management. Through leveraging global, trusted datasets for
objective loss triggers, Arbol aims to broaden the adoption of
parametric products and pioneer the concept of climate risk as a
tangible, investable asset class. It differentiates itself through
its technology ecosystem, which combines automated structuring,
AI-powered underwriting, pricing tools, and user-friendly platforms
for agents and brokers. Combining this approach with flexible risk
capital enables Arbol to underwrite bespoke solutions, facilitating
the scalable distribution of innovative financial products.
"This Series B funding marks a pivotal moment for Arbol,
affirming our achievements and propelling our mission forward to
normalize parametric financial products and insurance globally as
key strategies in climate risk management," said Sid Jha, Arbol's founder and CEO. "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. Our approach is not
just about offering insurance; it's about creating a safety net
that spans the entire spectrum of economic participants affected by
climate volatility."
The fresh funding will support Arbol's continued expansion into
agriculture and renewable energy through products tailored for new
perils and geographies. The capital raised will also support
Arbol's global expansion and broaden its investment in property and
casualty (P&C) and home insurance business lines in the U.S.
and internationally. Arbol will continue to deepen its work with
entities in the financial sector, such as banks, which are facing
new challenges with climate risks, both for their internal risks
and client needs.
"You can't go a week without reading an article about extreme
weather events occurring and the challenge this poses for
traditional insurers," said Cameron
McLain, Co-founder and Managing Partner of Giant Ventures.
"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're building
an essential pillar of climate adaptation and the global financial
infrastructure."
"While climate change is more and more tangible, the need for
hedging solutions that are scalable and economically sustainable is
becoming key," added Thibaut
Schlaeppi, Managing Director of Opera Tech Ventures.
"Leveraging insurance and capital markets offers Arbol's clients a
pivotal solution to build the financial resilience they need".
Arbol raised a $7 million Series A
funding round in January 2021 led by
a member of The Susquehanna International Group of Companies (SIG)
with participation from Mubadala Capital and Space Capital.
The company transacted $250
million in gross written premium (GWP) in 2023, with
significant growth in its renewable energy and reinsurance
businesses. Arbol Insurance Services (AIS), a wholly owned
subsidiary of Arbol, became an approved Lloyd's of London cover holder in May last year.
Arbol recently announced the launch of Lilypad Insurance, a newly
established carrier dedicated to serving the unique insurance needs
of homeowners and property investors in coastal areas. Lilypad
received its certificate of authority from Louisiana and has begun operations in the
state. Subsequently, it announced the acquisition of Centauri
Specialty Insurance Company and Centauri National Insurance
Company, subject to regulatory approval. Lilypad Insurance will
enable Arbol to grow the total addressable market of parametric
insurance through hybrid product distribution while addressing the
urgent need to address the growing coverage gap in coastal
communities.
Arbol's success stories span globally — over 15 countries —
and include a wide range of businesses looking to build resilience
against climate risk. This Series B funding is a testament to
Arbol's vision, its team's execution capability, and the
significant market demand for innovative risk management
solutions.
About Arbol
Arbol is redefining climate risk management to transform it into
a globally recognized asset class. Through a foundation of
innovative pricing, comprehensive data infrastructure, and precise
AI-powered underwriting tools, Arbol aims to bridge the global
coverage gap and offer practical solutions for managing climate
risks. Awarded for its underwriting innovation, Arbol leverages
advanced technologies to serve a broad client base, emphasizing
sustainability and resilience in an unpredictable climate
landscape.
For more information, press only:
press@arbol.io
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