New York Tech Firm Arbol and Enterprise Blockchain Consortium RiskStream Unveils AI and Blockchain-Powered Parametric Insurance Platform
Arbol, a startup based in New York, has launched a parametric insurance platform that leverages artificial intelligence (AI) and blockchain technology. This platform was developed in partnership with the RiskStream Collaborative, which is considered the largest enterprise-level blockchain consortium in the insurance industry.
Parametric insurance schemes offer compensation for weather-related events such as cyclones and floods. According to a report by Allied Market Research, the market is anticipated to expand threefold due to the ambiguity triggered by climate change.
The dRe platform has been exclusively designed for the reinsurance sector, which pertains to insurance for insurance firms. Currently, the platform focuses on catastrophic calamities. According to the statement released by the startup, it utilizes authenticated weather data sourced from the prominent decentralized climate data network, dClimate, and Chainlink’s decentralized oracle network that adheres to industry standards. The platform then initiates a smart contract for specific peril events, which are determined by the wind speed and location.
According to a spokesperson from the company, dRE utilizes the Arbol risk framework and pricing platform, which incorporates advanced artificial intelligence algorithms to facilitate efficient underwriting.
Based on the provided statement, the platform streamlines the process of claim initiation, notifications, and loss calculations to enhance the speed of payout and transparency of the system.
Arbol and dClimate have a common origin as both stem from a decentralized marketplace for climate data. According to the startup information platform Dealroom, the insurtech firm secured $9 million in Series A funding in January 2021.