Beazley Launches Parametric Climate Risk Management Product with new Lloyd’s Coverholder, Arbol
Arbol, a global climate risk solutions platform, and Beazley, a prominent insurer, have announced the introduction of specific parametric weather products to the US market. Modern products are now available for a variety of risks such as low and excessive rainfall, low and excessive wind speed, high and low temperatures, and a lack of solar radiation. The product is presently offered and accessible on a surplus line basis in the United States.
To inform underwriting operations, Arbols’ unique pricing platform is underpinned by artificial intelligence and a specialized climate data infrastructure. Weather data indices are utilized to create custom parametric products with triggers that are specific to the hazard and the insured.
Arbol Insurance Services (an Arbol company) has been appointed as a Lloyds cover holder, with a Beazley-led facility backed by Tokio Marine Kiln and Nephila.
Guy Carpenter served as the sole putting broker and was in charge of procuring the required capacity.
This milestone underscores our commitment to provide innovative risk management solutions, said Hong Guo, Arbol’s EVP and Chief Insurance Officer. As organizations attempt to successfully manage increasing climate risks, it opens up new possibilities to serve our customers and the insurance market.
Beazley’s Head of Incubation Underwriting, Neil Kempston, commented, “Beazley is committed to supporting the development of weather parametric products that alleviate the challenges facing the agricultural supply chain and renewable energy markets as they move toward net zero.” We can provide for our brokers and their clients by forming a long-term engagement with Arbol.
