Investors Are Increasingly Interested in a Novel Type of Weather Insurance.

INVESTORS; INSURANCE; INSURANCE companies; WEATHER; REINSURANCE; HOMEOWNERS insurance

Arbol, a New York-based startup, has raised $60 million in a Series B funding round for its parametric insurance services. Parametric insurance is a form of indemnity that triggers payouts based on predetermined parameters, such as a specific amount of rainfall. Arbol uses artificial intelligence technology to process climate data and simulate weather interactions to accurately price weather perils. The company has seen significant growth, transacting $250 million in gross written premiums in 2023. The funding will allow Arbol to expand into new markets, including offering home insurance for coastal communities in the US. Parametric insurance is gaining traction as businesses seek protection from the increasing impacts of climate change. [Extracted from the article]

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