Climate risk solutions provider Arbol has closed a $60 million Series B funding round, co-led by Giant Ventures and Opera Tech Ventures with participation from Mubadala Capital.
Following a year marked by “unprecedented” climate events, Arbol noted that this new funding represents a long overdue moment for climate risk insurance.
Through leveraging global, trusted datasets for objective loss triggers, Arbol explained that it aims to broaden the adoption of parametric products and pioneer the concept of climate risk as a tangible, investable asset class.
According to the firm, the new funding will also support its continued expansion into agriculture and renewable energy through products tailored for new perils and geographies; and will additionally bolster Arbol’s global expansion and broaden its investment in property and casualty and home insurance business lines in the U.S. and internationally.
Sid Jha, Arbol’s founder and CEO, added, “This Series B funding marks a pivotal moment for Arbol, affirming our achievements and propelling our mission forward to normalize parametric financial products and insurance globally as key strategies in climate risk management.
“Our ambition extends from empowering the world’s smallest subsistence farmers in underserved regions to securing the assets of the world’s largest corporations, ensuring they all have access to unmatched protection amidst the unpredictability of climate change.
“Our approach is not just about offering insurance; it’s about creating a safety net that spans the entire spectrum of economic participants affected by climate volatility.”
Cameron McLain, Co-founder and Managing Partner of Giant Ventures, said, “You can’t go a week without reading an article about extreme weather events occurring and the challenge this poses for traditional insurers.
“Arbol’s pioneering approach enables businesses, large and small, to manage climate risk where traditional insurance fails. Their achievements are hugely impressive, and we believe they’re building an essential pillar of climate adaptation and the global financial infrastructure.”
Thibaut Schlaeppi, Managing Director of Opera Tech Ventures, commented, “While climate change is more and more tangible, the need for hedging solutions that are scalable and economically sustainable is becoming key.
“Leveraging insurance and capital markets offers Arbol’s clients a pivotal solution to build the financial resilience they need.”
