Key Takeaways:
- Beazley and Arbol have launched pioneering parametric weather products for the U.S. market.
- These products leverage artificial intelligence and specific weather data to provide customizable solutions for various climate risks.
- The new offerings mark a significant step forward in the insurance industry’s response to managing climate risks.
- As a newly appointed Lloyd’s coverholder, Arbol continues to expand its reach in the insurance space.
An Innovative Approach to Climate Risk
Beazley, a leading specialist insurer, has teamed up with Arbol, a global fintech company offering full-service climate risk exposure solutions, to introduce a unique range of parametric weather products to the U.S. market. These innovative insurance offerings, underpinned by artificial intelligence and precise climate data, are designed to manage a host of weather-related risks, including variations in wind speed, temperature, precipitation, and solar irradiance.
Powering Insurance with AI and Climate Data
Arbol’s cutting-edge pricing platform, driven by AI and robust climate data infrastructure, is at the heart of these new products. This platform allows the creation of bespoke parametric solutions, using distinct triggers based on specific perils and the insured’s needs.
Hong Guo, EVP and Chief Insurance Officer of Arbol, has stressed the significance of this innovative development. “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.”
Beazley’s Commitment to Managing Climate Risks
Beazley has long been dedicated to the development of parametric products, especially to tackle challenges faced by the agricultural supply chain and renewable energy markets in the journey towards net-zero carbon emissions. Neil Kempston, Head of Incubation Underwriting at Beazley, emphasized this commitment, stating, “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.”
A New Milestone: Arbol as a Lloyd’s Coverholder
In addition to launching the new product line, Arbol Insurance Services (an Arbol subsidiary) has now been appointed as a Lloyd’s coverholder. This is a significant achievement, strengthening Arbol’s position in the global insurance industry.
About Arbol
Arbol is a dynamic fintech company offering comprehensive solutions for businesses managing climate risk exposure. Their innovative approach combines advanced technologies like AI underwriting, big data, and blockchain-powered operational efficiencies, to bring much-needed scale and transparency to the climate risk insurance space. Arbol aims to support climate-friendly investments and help organizations manage climate-related risks.
About Beazley
Beazley plc is the parent company of specialist insurance businesses operating globally. In 2022, it underwrote gross premiums worldwide of $5,268.7m. Beazley’s underwriters focus on writing a range of specialist insurance products, marking it as a market leader in various lines, including professional indemnity, cyber, property, marine, reinsurance, accident and life, and political risks and contingency business.
About Guy Carpenter
Guy Carpenter & Company, LLC is a leading global risk and reinsurance specialist. It provides a potent combination of broking expertise, trusted strategic advisory services, and industry-leading analytics to help clients adapt to emerging opportunities and achieve profitable growth.
In conclusion, the partnership between Beazley and Arbol in launching these specialist parametric weather products represents a significant leap in the insurance industry’s response to managing climate risks. By leveraging artificial intelligence, big data, and precise climate data, these innovative solutions promise to shape the future of climate risk management.