InsurTech platform and FinTech company, Arbol Inc., has launched Arbol Underwriters Ltd. (AUL), a Bermuda-based registered insurance agent with a focus on matching reinsurance capacity with parametric insurance risks.
AUL has partnered with SIG Re, a Bermuda domiciled reinsurer, to provide keystone committed capacity, with SIG Re having appointed AUL as an insurance agent for its parametric reinsurance business.
Through new data-driven parametric solutions designed by Arbol and the initial capacity provided by SIG Re, the pair seek to address the sizeable protection gap that currently exists in the traditional insurance and reinsurance sector for climate risks.
AUL intends to source original risk through a variety of channels, the first of which being partnerships with fronting insurance carriers.
Through volume program business and bespoke coverage solutions designed by Arbol and written through the fronting carriers, individuals and businesses can purchase parametric insurance to hedge their climate risk.
AUL will also work with re/insurers and captives in the open market to design their outwards parametric coverage solutions.
Hong Guo, a former managing director at Guy Carpenter and Arbol’s Chief Insurance Officer, will serve as AUL’s Chief Executive Officer (CEO).
Osho Jha, a co-founder of Arbol who currently serves as its chief data scientist, will be AUL’s Chief Underwriting Officer (CUO). AUL is registered as an Insurance Agent by the Bermuda Monetary Authority.
Guo said: “We are excited about setting up a platform in Bermuda to offer parametric solutions in the form of reinsurance.
“Leveraging Arbol’s massive, cutting-edge data infrastructure and proprietary pricing tools, AUL will be able to provide innovative reinsurance solutions to its clients.”
Todd Simkin, CEO of SIG Re, stated: “We are delighted to grow our existing relationship with Arbol through this new underwriting arrangement. AUL’s core emphasis on quantitative risk analytics and technology strongly aligns with our way of thinking at SIG Re.”
