Insurtech Arbol Launches Bermuda MGU, Focusing on Parametric Reinsurance

Arbol Inc., a New York City-based insurtech platform for parametric protection products, announced the launch of Arbol Underwriters Ltd. (AUL), a registered insurance agent based in Bermuda, which is focused on providing reinsurance capacity for parametric insurance risks.

AUL’s parent company, Arbol, is an insurtech platform and fintech company that leverages decentralized climate data, blockchain technology and artificial intelligence (AI) to power its proprietary pricing platform and to offer parametric protection products and SaaS services to help its customers transfer and manage climate risks.

“We are excited about setting up a platform in Bermuda to offer parametric solutions in the form of reinsurance” said Hong Guo, CEO of AUL and chief insurance officer of Arbol. “Leveraging Arbol’s massive, cutting-edge data infrastructure and proprietary pricing tools, AUL will be able to provide innovative reinsurance solutions to its clients.”

AUL intends to source original risk through a variety of channels, the first of which being partnerships with fronting insurance carriers. Through both 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.

Additionally, AUL will work with re/insurers and captives in the open market to design their outwards parametric coverage solutions.

To finance the risks sourced by AUL, AUL intends to seek capacity from the reinsurance market. AUL has partnered with SIG Re Ltd., a Bermuda-based reinsurer (SIG Re), to provide keystone committed capacity. SIG Re has appointed AUL as an insurance agent for its parametric reinsurance business. Through new data-driven parametric solutions designed by Arbol and the initial reinsurance capacity provided by SIG Re, the two companies seek to address the sizable protection gap that currently exists in the traditional insurance/reinsurance sector for climate risks.

SIG Re is a technology and analytics-driven reinsurer, incorporated in Bermuda. SIG Re is part of the Susquehanna International Group of Companies (SIG), one of the largest, privately held, quantitative trading firms in the world. Founded in 1987 and headquartered in Bala Cynwyd, Penn., SIG has 2,300-plus employees worldwide. SIG Re is registered as a Class 3A insurer by the Bermuda Monetary Authority and offers capacity on both parametric and prize indemnity insurance business.

Hong Guo, a former managing director at Guy Carpenter and Arbol’s chief insurance officer, will serve as AUL’s CEO. Osho Jha, a co-founder of Arbol who currently serves as its chief data scientist, will be AUL’s chief underwriting officer

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