Arbol, a leader in parametric insurance solutions, has announced the successful closure of a $60m Series B funding round.
Co-led by Giant Ventures and Opera Tech Ventures, with participation from Mubadala Capital, this substantial investment reflects the market’s confidence in Arbol’s innovative approach to climate risk management.
The insurance industry is facing mounting challenges due to the escalating impact of climate change, with record losses exceeding $380bn in the past year alone.
Traditional insurance models are struggling to cope with the rapid and severe climatic events, highlighting the need for innovative solutions to streamline claims processing and provide timely financial relief.
Arbol’s core mission revolves around addressing the limitations of traditional indemnity insurance by implementing parametric insurance models.
These models utilise predefined climate data triggers to determine payouts swiftly, eliminating the need for manual damage assessments and ensuring a fair and transparent claims process based solely on data.
Through this tranche Arbol aims to accelerate its strategic initiatives and expand its reach within the insurance sector. The company plans to venture into new markets such as agriculture and renewable energy, areas particularly vulnerable to climate risks yet underserved by traditional insurance products.
The funding will also facilitate Arbol’s global expansion efforts, enabling the company to offer property and casualty (P&C) and home insurance solutions in the U.S. and internationally.
By leveraging advanced technology and broadening its product offerings, Arbol aims to meet the growing demands for innovative risk management solutions.
Sid Jha, Founder and CEO of Arbol, commented on the news, stating, “The Series B funding is pivotal—it enables us to accelerate our strategic initiatives and expand our reach within the insurance sector. This infusion of capital supports our continued expansion into new markets such as agriculture and renewable energy, areas particularly vulnerable to climate risks yet underserved by traditional insurance products.”
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