Arbol

Company Overview

Arbol is a climate risk coverage company founded in 2018 to transform how climate risk is actively managed throughout the global financial system. Headquartered in New York City with a global remote workforce, Arbol provides parametric insurance and derivatives solutions to help businesses and individuals protect against financial losses due to adverse weather and climate events.

The company leverages vast data networks, cutting-edge technologies like AI and blockchain, and risk capital to offer innovative climate risk management products. Arbol’s mission is to make climate risk coverage accessible to anyone or any business, regardless of size or location.

Products Overview

Arbol offers several key product lines:

1. Parametric Insurance - Provides rapid payouts based on predefined weather/climate triggers, without requiring proof of loss. Covers perils like drought, excessive rainfall, extreme temperatures, hurricanes, etc.

2. Agriculture Derivatives - Custom structured financial products to help agricultural businesses hedge against crop yield losses, precipitation risks, temperature fluctuations, and other climate-related risks.

3. Energy Derivatives - Tailored products for energy companies to manage risks related to temperature, wind generation, solar irradiance, and other factors affecting energy production/demand.

4. Climate Data Infrastructure - Expansive climate data network leveraging public, private and commercial data sources.

5. AI Underwriting Platform - Proprietary AI-powered platform for rapid pricing and underwriting of climate risk products.

Founding Team

• Siddhartha Jha - Founder, Chairman and CEO. Previously had over 13 years of experience in financial industry, including commodities trading.

• Osho Jha - Co-founder and Chief Data Scientist. Oversees development of data-driven parametric products and climate risk solutions.

• Philippe Heilberg - Co-founder, President, CFO and COO. Has background in financial institutions and commodity trading.

Problem and Market Fit

Arbol is addressing the growing need for financial protection against climate risks, which are causing hundreds of billions in annual losses globally. Traditional insurance struggles to efficiently cover climate risks, leaving many businesses and individuals exposed.

Arbol’s parametric solutions aim to close this “protection gap” by offering rapid, transparent payouts based on objective data triggers. This model can scale to cover risks that are difficult to insure traditionally.

Business Model

Arbol generates revenue through:

1. Premiums/fees on parametric insurance policies and derivatives contracts.
2. Licensing of their AI underwriting and climate data infrastructure to other companies.
3. Risk transfer, acting as an intermediary between clients and reinsurance/capital markets.

The company leverages technology to keep costs low while offering customized solutions.

Funding and Runway

Arbol recently raised $60 million in Series B funding in January 2024 to scale its parametric insurance offerings. Total funding amount and previous rounds are not specified in the provided material.

Competitive Landscape

While not explicitly stated, Arbol likely competes with: - Traditional insurance/reinsurance companies - Other parametric insurance startups - Weather derivatives providers - Climate risk analytics firms

Arbol aims to differentiate through its proprietary AI/ML technology, expansive data infrastructure, and ability to offer highly customized parametric products.

Customers

Arbol serves a diverse range of clients including: - Farmers and agribusinesses - Energy companies (renewables, utilities) - Financial institutions - Governments and municipalities

One highlighted customer example is Punkin Center Gin, a cotton gin in Texas that received a payout from Arbol’s product during a crop disaster.

Relevant News

• January 2024: Arbol raised $60 million in Series B funding to scale parametric insurance offerings.
• Arbol launched Lilypad Insurance, aiming to address coverage gaps in coastal communities (date not specified).

The company has been featured in major publications like Wall Street Journal, Bloomberg, Forbes, and others, indicating growing recognition in the industry.