10 November 2021

Parametric insurance platform Arbol launches Bermuda MGU

Parametric cover platform Arbol Inc has launched a Bermuda-based registered insurance agent. Arbol Underwriters Ltd (AUL) will focus on matching reinsurance capacity with parametric insurance risks.

A New York-based insurtech business, Arbol uses decentralized climate data, blockchain technology and artificial intelligence to price parametric protection products linked to weather risks.

According to the company, its new managing general underwriter will source original risk through various channels, starting with partnerships with fronting insurance carriers. Individuals and businesses will be able to purchase parametric insurance to hedge climate risk through volume program business and bespoke coverage solutions. AUL will also work with re/insurers and captives in the open market to design their outward parametric coverage solutions, it says.

To finance the risks sourced by AUL, it has partnered with Bermuda-based reinsurer SIG Re, part of Susquehanna International Group, one of the world’s largest, privately-held, quantitative trading firms.

SIG Re will provide keystone committed capacity and has appointed AUL as an insurance agent for its parametric reinsurance business. A technology and analytics-driven reinsurer, it is registered as a Class 3A insurer by the Bermuda Monetary Authority and offers capacity on both parametric and prize indemnity insurance business.

“We are excited about setting up a platform in Bermuda to offer parametric solutions in the form of reinsurance,” said Hong Guo, a former managing director at Guy Carpenter and now CEO of AUL and chief insurance officer of Arbol. “Leveraging Arbol’s massive, cutting-edge data infrastructure and proprietary pricing tools, AUL will be able to provide innovative reinsurance solutions to its clients.”

Osho Jha, Arbol co-founder and its chief data scientist will be AUL’s chief underwriting officer.

Todd Simkin, CEO of SIG Re, said: “We are delighted to grow our existing relationship with Arbol through this new underwriting arrangement. AUL’s core emphasis on quantitative risk analytics and technology strongly aligns with our way of thinking at SIG Re.”