A parametric insurance platform powered by blockchain and artificial intelligence (AI) has been introduced by New York-based startup Arbol. It was created in partnership with the RiskStream Collaborative, which bills itself as the largest enterprise-level blockchain consortium in the insurance sector.
Plans for parametric insurance provide compensation for weather-related calamities like storms and floods. According to Allied Market Research, the market is anticipated to triple in size, in part because of the unpredictability brought on by climate change.
The technology, called dRe, was created exclusively for reinsurance, which is insurance provided to insurance firms, and it is currently targeted at catastrophic storm catastrophes. The platform activates a smart contract based on wind speed and location for particular risk occurrences using certified meteorological data from leading decentralized climate data network, dClimate, and Chainlink’s industry-standard decentralized oracle network.
On top of that, “dRE leverages the Arbol risk framework and pricing platform, which has been powered by advanced artificial intelligence algorithms for efficient underwriting,” said a company spokesperson.
According to the press release, the platform automates claim initiation, notifications, and loss estimates to speed up payouts and improve system transparency.
A decentralized marketplace for climate data, dClimate, and Arbol have the same originator. In January 2021, the insurtech company raised $9 million in a Series A investment, according to startup news site Dealroom.
Startup Arbol Introduces Blockchain-Based Climate Insurance Platform
