Arbol forms first captive insurer dedicated to climate risk management
Insurtech platform and FinTech company Arbol has announced the formation of Climate Risk Insurance Company – the first captive insurance company dedicated to climate risk management.
Based in Connecticut, Climate Risk Insurance Company will focus on helping businesses and corporations manage a range of risks, like temperature, rainfall, and catastrophic storms.
The formation of Climate Risk Insurance Company enables Arbol to offer customised climate risk management solutions for corporations.
“Arbol provides a full service, end-to-end risk management and transfer solution for managing climate risks using a technology and data driven platform,” said Hong Guo, Chief Insurance Officer, Arbol.
“The formation of Climate Risk Insurance Company further extends Arbol’s services towards climate risk retention and management. We are excited about our capability to help corporations operationalize their climate risk management process using our full suite of services, tools and products.”
Meanwhile, Arbol unveiled its Captive+Parametric solution last year in order to help corporations transfer climate risks into a captive insurance vehicle using a parametric structure. The program enables corporations to take full advantage of all the tools and services available in the Arbol ecosystem, which includes a dedicated climate data platform (dClimate), proprietary pricing and structuring tools, and non-traditional, dedicated capacity.
Fenhua Liu, Deputy Commissioner and Director, Connecticut Captive Insurance Division, commented: “We are pleased that Arbol has chosen Connecticut to domicile the first captive company focused solely on climate risk management. Climate risk is an important but underutilized use case that the Arbol team has identified for how captives can be used to help corporations proactively manage emerging risks.”
Source: Reinsurance News, https://www.reinsurancene.ws/arbol-forms-first-captive-insurer-dedicated-to-climate-risk-management/