Arbol’s Post

I’m excited to announce that Arbol has successfully closed a $60 million Series B funding round, co-led by Giant Ventures and Opera Tech Ventures, with participation from Mubadala Capital! This substantial investment is a strong endorsement of our approach to climate risk management and a significant milestone in our mission to scale parametric insurance. The escalating impact of climate-related disasters underscores the urgent need for innovative insurance solutions. Arbol’s parametric insurance, which leverages objective climate data to trigger rapid payouts, is changing the way communities respond to catastrophic climate events like hurricanes, drought and extreme heat waves. This model eliminates the delays of traditional insurance, offering immediate relief to those affected by severe weather conditions. The Series B funding will also support our continued global expansion, allowing us to offer more comprehensive solutions across property and casualty (P&C) and home insurance, both in the U.S. and internationally. Our mission to bridge the 69% global coverage gap continues, with a focus on providing robust protection to underserved populations. We're especially excited about our newly launched Lilypad Insurance, dedicated to serving coastal regions—areas that are often overlooked yet significantly vulnerable. I am incredibly grateful for the hard work of our team, the trust of our investors, and the ongoing support from our clients. Together, we are setting new standards in managing climate risks and ensuring resilience for communities worldwide. We’re just getting started! Read my blog post announcing the Series B: https://lnkd.in/ex6CJ3U3 Read the article covering the Series B today in Bloomberg:  https://lnkd.in/ecQ4wvrG

As an investor in Arbol, I am thrilled to announce the successful Series B fundraise with our friends over at Giant Ventures and Opera Tech Ventures! This is more than just a financial milestone—it's a robust endorsement of Arbol's innovative approach to managing climate risks through parametric insurance. In a year that witnessed unprecedented climate-induced challenges, resulting in $380 billion in losses, the necessity for rapid, reliable, and equitable insurance solutions has never been clearer. Arbol’s model is revolutionary, offering immediate financial payouts based on predefined climate data, streamlining the support process dramatically compared to traditional methods. This fresh capital injection is poised to propel the company's expansion into new markets and enhance product offerings in agriculture, renewable energy, and property & casualty insurance, both domestically and internationally. It’s invigorating to support a company that not only aims to grow but also to fundamentally transform how we perceive and manage climate-related risks. Looking forward to seeing Arbol not just respond to the market but lead it, creating sustainable impacts for small farmers and major corporations alike. It's always an honor and an exciting ride to be alongside you Siddhartha Jha Philippe Heilberg Osho Jha

Yesterday I posted about the critical role of insurance in climate change. The key point: Insurers are not just managing risks; they’re unlocking opportunities for climate mitigation. New insurance products are making private investment in climate projects possible by reducing risk profiles. Alongside some of the larger players, here are some of the dedicated players bringing innovative products to market: Carbon delivery insurance by Kita, backed by Lloyd's. Replacement credits from CarbonPool. Reversal risk insurance by Oka, The Carbon Insurance Company™. These players are: 1️⃣ Unlocking private capital to flow into nature projects, which have very specific risks that are foreign to a lot of players. 2️⃣ Allowing corporates to insure their reputation in case their credit purchase “goes wrong”. It may seem like an unexciting industry, but we all have a vested interest in the fortunes of insurers. They facilitate our current way of life and can unlock the financing needed to combat climate change and build resilience. At Terra Natural Capital, we are actively engaged with and partnering with these dedicated players both for our investments, and to support corporates engaging alongside us. Get in touch to find out more. 👉 And check out Natalia Dorfman, Alek Pillay, Thomas Merriman, Coenraad Vrolijk, and Chris Slater for leaders to follow in this space. Any I've missed - tag them below.

DECEMEBER ESG REGULATORY ROUND-UP (6/10): US Federal Insurance Office to collect data from insurers to assess climate-related financial risks The largest insurers accounting for 70% of homeowners insurance premiums nationwide will be asked to provide data on their home insurance policies at a zip-code level, in an effort to understand how climate-related financial risks affect the population following decisions by some insurers to exit certain markets and significantly raise premiums in several states. In 2022, insurance covered only 60% of the $165 billion in total economic losses from climate-related disasters. The chart below shows P&C carrier and Reinsurer losses resulting from Hurricane Ian, a Category 4 storm which hit Florida in September 2022. Every month my colleagues in S&P Global Sustainable1 Thought Leadership publish a round-up of global ESG Regulations. Here’s December’s publication, which I’ve been breaking down every day since the start of last week. https://lnkd.in/dhiniaf2  

Here is a great overview of issues around insurance and climate: 5 ways the property and casualty insurance industry can take action on climate, by my colleague Carolyn Kousky and Joseph Lockwood. These are: 1) cut emissions from their own operations; 2) apply a climate lens to their investments; 3) integrate climate considerations into underwriting and client engagement; 4) adopt claims processes that support the energy transition; and 5) support climate policy. All of these actions are pragmatic and consistent with risk management and value-creation. But levers 3&4 - underwriting and claims - are where the biggest opportunities are (by far) and are still not adequately addressed by many insurers. Leslie Labruto Steven M. Rothstein Guillaume Morauw Bronwyn Claire https://lnkd.in/eKyYvHhv

🍰 Insurance as the key ingredient for unlocking climate capital 🍰 Earlier this month, Kita was featured in an in-depth article from Sightline Climate (CTVC). The feature outlines the ways in which insurance can act as a risk transfer mechanism for the carbon market; leading to greater investment into carbon solutions. The cake-making analogy used across the feature was brilliant but rather than 'overbake' it, here are the key points that highlight the value of insurance: 🏅 In new and emerging markets, MGAs offer expertise and bespoke service: We "have the specialty expertise to design products that better fit new or unique markets that traditional insurance might not cover, or have data and a unique underwriting view on a challenging market...They have a symbiotic relationship with large insurers, with MGAs providing the special know-how, backed by insurance companies with large balance sheets". 📊 - We are familiar with the risks involved and how those risks are viewed by investors: As Natalia Dorfman asserts "Risk profiles differ depending on the type of carbon project. Nature-based projects like forestry have more familiarity for some investors, for example due to wider timber investment portfolios. However, they might have concerns regarding political, counterparty, and climate risks—particularly in areas prone to natural disasters. Engineered carbon removal projects are more capex-heavy and face technology and scale-up risks, but once up and running can offer investors a risk profile that feels familiar in terms of other infrastructure assets". 💵 Insurance can unlock finance for early-stage projects, enabling investors to take action now rather than wait: "Carbon projects forecast their future ability to sequester carbon dioxide, resulting in expected numbers of carbon credits. However given the long timeframes of carbon projects, there’s risk that these carbon credits might not be delivered - for example due to natural catastrophe, counterparty risk, changes to carbon methodologies, or political and regulatory risk. Early-stage projects need investment to scale and insurance provides the security needed to unlock financing." 🔎 Insurance acts as an additional stamp of approval on carbon projects: "We look at a wide spread of risk factors, from political and regulatory risks, to project developer track record, creditworthiness, and contract terms, alongside natural catastrophe and business interruption risks. We get data from public registries, ratings and data providers, and also use proxy data and proprietary data we access from the projects we see. We do extensive due diligence and only insure projects we truly think meet all the quality criteria in the carbon markets". Thank you to Kimberly Zou of Sightline Climate for sharing the work we do. #carboninsurance #vcm #carbonremoval

🌎 We’re excited to announce Oka, The Carbon Insurance Company™ launches with Cloverly a new brand of insured #carboncredits for the VCM! Protected by Oka’s Carbon Protect™ insurance solution, Cloverly will offer the exclusive new suite of insured credits to the voluntary carbon market (VCM) providing buyers with financial compensation in the event of unforeseeable and unavoidable post-issuance risks. This is an important milestone for both companies and comes at a high-stakes moment for #climateaction, where effective #carbonmarkets play a vital role. By improving market accessibility and transparency, Oka and Cloverly are building buyer confidence in, and unlocking capital for, critical climate solutions. Together, we’re bridging gaps and growing trust in the #VCM. 🔗 https://lnkd.in/eHp4Nwf6 #climatetech #carboninsurance #carbonremoval #netzero

As #ClimateChange becomes a critical financial risk, CFOs must rethink insurance strategies to manage physical, transition, and liability risks. So how should you go about finding the right #climate insurance policy for your business? The CFO's latest analysis considers the the importance of comprehensive risk assessments, gap analysis, and customised policies, such as parametric insurance, to ensure robust coverage. European regulatory developments and innovative insurance products are also discussed, highlighting the need for strategic partnerships with insurers who offer tailored solutions and risk engineering services. 🌳 https://lnkd.in/eBHqHCPA #ClimateChange #ClimateInsurance #InsuranceProvider #CFOInsights #ClimatePolicy #ClimateRisk #ESG

Join us as we dive into the crucial role of ESG in the dynamic sphere of property insurance with Rachel Norris and Mark Middleton from Lockton. Rachel's extensive background in scaling ESG initiatives and Mark's expertise in property loss control, make this episode packed with knowledge and practical wisdom for steering through the challenges of climate change. 🌍 Navigating Climate Risks: Discover how extreme weather events are reshaping insurance policies and the vital role of fire-resistant construction. 🤝 Collaborative Strategies: See how developers, asset owners, and insurance brokers are working together to tackle long-term risks. 🔍 Innovative Risk Assessment: Learn about the powerful combination of modeling techniques and on-the-ground inspections for assessing property vulnerabilities. 🔒 Ensuring Business Continuity: Understand how insurance safeguards assets and keeps business operations resilient. 🏘️ Building Strong Communities: Explore the social aspects of ESG, reducing liability claims, and enhancing occupant satisfaction. 🔐 Cybersecurity in Real Estate: Get insights into the critical importance of data security in our tech-driven market. Tune in to this insightful episode and connect the dots between ESG practices, property insurance innovation, and our evolving environment. #LifeProven #Podcast #ESG #Insurance #RealEstate #SustainableDevelopment #ClimateResilience

Funding News: The Demex Group raised $10.25 million in a Series A round, led by Congruent Ventures, with participation from Moxxie Ventures, MetaProp, and Blue Bear Capital, supporting its risk analytics and parametric reinsurance solutions. Demex provides a parametric stop-loss reinsurance solution for secondary perils like severe convective storms (e.g., tornadoes, hail), which are increasing due to climate change, offering tailored protection for insurers to manage financial risks. 🗣 “Growing losses from these storms are a critical problem for the insurance industry – challenging insurance companies’ annual earnings and balance sheet surpluses. We’re grateful to have investors who bring climate perspective, technology capabilities, a property mindset, and insurance experience to Demex,” said William Clark, President and CEO of Demex. 🗣 “Insurance carriers are taking significant losses from high frequency events such as thunderstorms and have been digging into their surpluses for years,” said Abe Yokell, Co-Founder and Managing Partner of Congruent Ventures who led the round. “Reinsurers, too, have experienced higher than expected losses due to secondary perils. The Demex model – developed by a blue-chip team from industry heavyweights – quantifies risk and reduces deviation, which broadens reinsurance offerings and ultimately provides a stronger insurance industry for property owners.” #ClimateTech #Reinsurance #ParametricInsurance #SevereWeatherProtection #ClimateRisk #InsuranceInnovation #VentureFunding #SecondaryPerils #Sustainability #RiskManagement #ClimateSolutions #TechInvestment