Global climate risk coverage platform Arbol, and The Institutes RiskStream Collaborative, the insurance industry’s largest blockchain consortium, have announced a strategic partnership to transform parametric insurance.
According to the announcement, the collaboration aims to leverage blockchain technology to streamline data flow, increase transparency, and enable rapid payouts in parametric insurance and reinsurance programs, addressing the challenges in managing seasonal and catastrophic climate risks, such as major storms and hurricanes.
Arbol will be integrated into RiskStream’s network of industry leaders dedicated to unlocking the potential of blockchain in risk management and insurance.
The consortium actively explores insurance-specific blockchain and distributed ledger technology (DLT) applications to reduce operating costs, enhance systems, and improve customer experiences across the $1 trillion insurance industry.
Sid Jha, Founder and CEO of Arbol, commented: “Our collaboration with The Institutes RiskStream Collaborative marks an exciting step in bringing innovation to the parametric insurance space.
“By leveraging smart contracts and distributed ledger technology, we aim to transform how climate insurance and reinsurance deals are managed, introducing unprecedented transparency and efficiency to global climate risk management.”
Initially, the Arbol and RiskStream Collaborative partnership will focus on developing an innovative, blockchain-driven parametric solution for the insurance industry. This solution, according to the announcement, will enhance trust and collaboration among all parties involved.
Additionally, this could also be extended to non-parametric insurance solutions for reinsurance programs, harnessing the unique value of smart contracts and DLTs.
Patrick Schmid, President of The RiskStream Collaborative, said: “We are excited to welcome Arbol into the collaborative as a solution provider. Their work in the parametric re/insurance space opens the door for our producer, carrier/cedent and reinsurer members to leverage their automated solutions.
“Arbol’s application, which works with external blockchain oracle data for various perils, aims to leverage RiskStream’s Canopy platform. The goal is to improve industry-wide operational efficiency and lead to a better overall insurance experience.”