Arbol, a prominent climate risk solutions provider operating across 15 countries, has announced the successful closure of a $60 million Series B funding round. Co-led by Giant Ventures and Opera Tech Ventures, with participation from Mubadala Capital, this investment comes at a crucial time amidst a year marred by unprecedented climate events, underlining the urgent need for climate risk insurance solutions.
In response to the escalating climate crisis, Arbol’s funding injection is poised to revolutionize climate risk insurance by advancing parametric insurance offerings. Parametric insurance, reliant on predefined climate data triggers such as rainfall levels or temperature thresholds, enables swift and objective payouts following catastrophic events, circumventing the delays associated with manual damage assessments. By streamlining financial relief distribution to affected communities, Arbol aims to mitigate the profound economic impacts of climate disasters.
Sid Jha, Arbol’s CEO and founder, expressed the significance of this funding round in propelling Arbol’s mission to standardize parametric financial products globally. He emphasized the company’s commitment to empowering diverse stakeholders, from small-scale farmers to multinational corporations, with access to robust climate risk management tools. Arbol’s innovative approach integrates automated structuring, AI-driven underwriting, and user-friendly platforms to offer scalable and customizable insurance solutions.
The newly secured capital will fuel Arbol’s expansion initiatives, particularly in the agriculture and renewable energy sectors, while supporting its global outreach efforts. Additionally, Arbol aims to fortify its presence in property and casualty (P&C) and home insurance markets in the U.S. and internationally. Notably, Arbol seeks to collaborate with financial institutions to address emerging climate risk challenges, bridging the gap between traditional insurance models and evolving climate realities.
Cameron McLain, Co-founder and Managing Partner of Giant Ventures, highlighted Arbol’s pivotal role in reshaping climate adaptation strategies and fortifying global financial infrastructure. Thibaut Schlaeppi, Managing Director of Opera Tech Ventures, emphasized the imperative for scalable and economically sustainable hedging solutions amid escalating climate change impacts.
Arbol’s remarkable trajectory, evidenced by its $250 million in gross written premium (GWP) in 2023 and strategic initiatives such as Lilypad Insurance, reflects its unwavering commitment to innovation and resilience-building. The Series B funding underscores Arbol’s leadership in pioneering climate risk management solutions and its dedication to addressing the urgent challenges posed by climate change on a global scale.
