Arbol, a global climate risk coverage platform, in collaboration with The Institutes RiskStream Collaborative, the largest blockchain and emerging technologies consortium in the insurance industry, today announced dRe is live and in production. As the first on-chain data calculation tool for reinsurance, the blockchain-powered platform is a significant milestone for parametric reinsurance.
dRe’s flexible design enables its adaptation to various perils such as rain, heat, or wind, and the potential for non-parametric insurance event notifications, marking it as a potent game-changer in the insurtech landscape.
As dRe continues to evolve and garner recognition, its fundamental values of transparency, efficiency, and collaboration remain steadfast, heralding a promising future for blockchain applications in the insurance industry. With early successes and an enthusiastic reception from the market, Arbol and The Institutes RiskStream Collaborative remain committed to fostering innovation and setting new standards for parametric reinsurance.
By leveraging blockchain technology and smart contracts, we are fundamentally reshaping the landscape of parametric (re)insurance.
Sid Jha, Founder and CEO of Arbol
“This platform is not just a step forward; it’s a leap. It transforms how we manage severe storm catastrophe transactions by providing rapid, auditable, and reliable payouts. And while our current focus is on severe storm events, the system’s design has far-reaching implications, paving the way for adaptations to other perils.”
Arbol’s dRe Lifecycle Dashboard is a smart contract-based system that enables efficient and transparent parametric loss calculations for severe storm catastrophe transactions.
Leveraging validated weather data from leading decentralised climate data network, dClimate, and Chainlink’s industry-standard decentralised oracle network, the platform triggers a smart contract based on wind speed and location for specific peril events.
The system automates claim initiation, notifications, and loss calculations, resulting in rapid payouts, streamlined data flow, and heightened transparency.
The platform was developed in collaboration with The Institutes RiskStream Collaborative, employs technologies by Kaleido, and leverages RiskStream’s Canopy platform—the industry’s first end-to-end reusable blockchain framework.
Thanks to its flexible design, dRe is able to adapt to various perils such as rain, heat, or wind, and the potential for non-parametric insurance event notifications.
Arbol’s key differentiator versus traditional InsureTech, or climate- analytics platforms, is the complete ecosystem it has built to address climate risk. This ecosystem includes a massive, climate-data infrastructure, scalable product development, automated, instant pricing–using an artificial intelligence underwriter–blockchain-powered operational efficiencies, and non-traditional risk capacity bringing capital from non-insurance sources.
By combining all these factors, Arbol brings scale, transparency, and efficiency to parametric coverage in stark contrast to the oligopoly of reinsurers currently dominating the climate-risk insurance space.
by Peter Sonner
