Beazley launches parametric weather covers for US with new Lloyd’s coverholder Arbol
Specialty insurer Beazley has launched new parametric weather products for the US market with climate risk platform and new Lloyd’s coverholder Arbol.
The products are for a range of perils, including low and excess precipitation, low and excess wind speed, high and low temperature, and lack of solar irradiance.
Arbol Insurance Services (an Arbol subsidiary) has been appointed as a Lloyd’s coverholder, with a facility led by Beazley supported by Tokio Marine Kiln and Nephila.
Arbol’s proprietary pricing platform is powered by artificial intelligence and a dedicated climate data infrastructure to inform underwriting operations. Weather data indices are used to develop customised parametric products, using triggers specific to the peril and the insured.
Guy Carpenter served as the sole placing broker and was responsible for securing the required capacity.
Hong Guo, EVP and chief insurance officer of Arbol, said: "This milestone validates our commitment to delivering innovative risk management solutions. It opens new possibilities to serve our clients and the insurance industry as businesses seek to effectively manage emerging climate risks."
Neil Kempston (pictured), head of incubation underwriting at Beazley, added: "Beazley is committed to supporting the development of weather parametric products that ease the challenges the agricultural supply chain and renewable energy markets face as we move to net zero. By building a long-term partnership with Arbol we can deliver for our brokers and their clients."
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
