Arbol and The Institutes RiskStream Collaborative Unveil dRe: A Blockchain-Powered Parametric Reinsurance Platform
Originally published on PR Newswire
In an industry-first, dRe streamlines parametric loss calculations and promotes transparency in the (re)insurance sector
NEW YORK, June 20, 2023 /PRNewswire/ -- Arbol, a leading global climate risk coverage platform, in collaboration with The Institutes RiskStream Collaborative, the largest blockchain and emerging technologies consortium in the insurance industry, today announced dRe is live and in production. As the first on-chain data calculation tool for reinsurance, the blockchain-powered platform is a significant milestone for parametric reinsurance, highlighting the tangible benefits of Arbol and RiskStream's strategic partnership announced in May.
Arbol's dRe Lifecycle Dashboard is a smart contract-based system that enables efficient and transparent parametric loss calculations for severe storm catastrophe transactions. Leveraging validated weather data from leading decentralized climate data network, dClimate, and Chainlink's industry-standard decentralized oracle network, the platform triggers a smart contract based on wind speed and location for specific peril events. The system automates claim initiation, notifications, and loss calculations, resulting in rapid payouts, streamlined data flow, and heightened transparency.
"dRe is a critical advancement in Arbol's pursuit to enhance transparency and efficiency in the insurance sector," said Sid Jha, Founder and CEO of Arbol. "By leveraging blockchain technology and smart contracts, we are fundamentally reshaping the landscape of parametric (re)insurance. This platform is not just a step forward; it's a leap. It transforms how we manage severe storm catastrophe transactions by providing rapid, auditable, and reliable payouts. And while our current focus is on severe storm events, the system's design has far-reaching implications, paving the way for adaptations to other perils."
The platform was developed in collaboration with The Institutes RiskStream Collaborative, employs technologies by Kaleido, and leverages RiskStream's Canopy platform—the industry's first end-to-end reusable blockchain framework.
"Transitioning this parametric (re)insurance application to production on the RiskStream Canopy platform represents a pivotal demonstration of blockchain's potential in the insurance industry," said Patrick Schmid, Ph.D., President, of The Institutes RiskStream Collaborative. "We foresee this as the first of many applications we bring to production for the benefit of RiskStream members, the industry, and the public we serve."
dRe's flexible design enables its adaptation to various perils such as rain, heat, or wind, and the potential for non-parametric insurance event notifications, marking it as a potent game-changer in the insurtech landscape. As dRe continues to evolve and garner recognition, its fundamental values of transparency, efficiency, and collaboration remain steadfast, heralding a promising future for blockchain applications in the insurance industry. With early successes and an enthusiastic reception from the market, Arbol and The Institutes RiskStream Collaborative remain committed to fostering innovation and setting new standards for parametric reinsurance.
About Arbol
Arbol is a global climate-risk coverage platform and FinTech company offering full-service solutions for any business looking to analyze, manage, and transfer climate risk. Arbol's products offer parametric coverage based on objective data triggers rather than a subjective loss assessment. Arbol's key differentiator versus traditional InsureTech, or climate- analytics platforms, is the complete ecosystem it has built to address climate risk. This ecosystem includes a massive, climate-data infrastructure, scalable product development, automated, instant pricing–using an artificial intelligence underwriter–blockchain-powered operational efficiencies, and non-traditional risk capacity bringing capital from non-insurance sources. By combining all these factors, Arbol brings scale, transparency, and efficiency to parametric coverage in stark contrast to the oligopoly of reinsurers currently dominating the climate-risk insurance space.
About The Institutes RiskStream Collaborative
The Institutes RiskStream Collaborative™ is the risk management and insurance industry's first enterprise-level blockchain consortium that brings together experts and developers to advance insurance-specific use cases via Canopy, a custom blockchain architecture. The Institutes RiskStream Collaborative is committed to equipping organizations to work together to inspire product innovation, enable efficiencies, and open new technological frontiers.
Contact: press@arbol.io
SOURCE Arbol