Arbol, a New York-based startup, has announced the launch of their parametric insurance platform, dRe, which is powered by artificial intelligence (AI) and blockchain. The platform was developed in collaboration with the RiskStream Collaborative, the largest enterprise-level blockchain consortium in the insurance industry. Parametric insurance schemes provide compensation for weather-related events such as storms and floods, and the market is expected to triple in size due to climate change, according to Allied Market Research.
dRe is designed for reinsurance, which is insurance for insurance companies, and is currently focused on severe storm catastrophes. The platform utilizes validated weather data from the decentralized climate data network, dClimate, and Chainlink’s decentralized oracle network to trigger a smart contract based on wind speed and location for specific peril events. Additionally, dRe leverages the Arbol risk framework and pricing platform, which is powered by advanced AI algorithms for efficient underwriting.
The platform automates claim initiation, notifications, and loss calculations to increase the speed of payouts and enhance transparency in the system. Arbol raised a $9 million Series A round in January 2021, according to Dealroom.