London headquartered specialty insurance and reinsurance firm Beazley has teamed up with Arbol, a technology-led underwriter of parametric risk transfer, climate and weather insurance or reinsurance business, to deliver a range of parametric climate and weather risk transfer products to clients.
Arbol Insurance Services, a newly launched Arbol subsidiary, has been appointed as a Lloyd’s coverholder, with its products backed by the Beazley led and partially ILS capital funded via Nephila facility.
The specialist parametric climate and weather risk transfer products that will be offered to the US market include, low and excess precipitation, low and excess wind speed, high and low temperature, and lack of solar irradiance.
The products and underwriting are supported by Arbol’s proprietary pricing platform, which is powered by artificial intelligence and its own dedicated climate data infrastructure.
Weather data indices are being utilised to develop customised parametric products, using triggers specific to the peril and the insured, Arbol explained.
Reinsurance specialist Guy Carpenter served as the sole placing broker and was responsible for securing the required capacity to support these parametric risk transfer products.
Hong Guo, EVP and Chief Insurance Officer of Arbol commented, “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, also said, “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.”